Note that the United States has expanded its position in trade in the last thirty years more than any other developed economy. New emphases characterize the US economy. First, the processing of information is more powerful and cost-effective than the physical transfer of objects. Value exists in intangibles, and human capital is among the most important. Infomediaries take the place of intermediaries.
Information becomes a larger part of value.
Increasingly, this combination of new characteristics, and new results, has led analysts to proclaim a New Economy. There is real basis for this supposition. Second, the high technology sector of the United States economy has expanded to the point that something like 40 percent of capital value of companies can be traced to these new activities. It is more than stock valuations that have been affected. Still, a certain caution is necessary before announcing the best of all possible worlds.