And this has happened, despite the Mexican crisis of 1994, despite the Asian collapse of 1997, despite the Russian debt failure in 1998 and despite the devaluation in Brazil at the beginning of 1999. It has been expanding trade that has made the US an essential compensating factor within the global economy, but at the cost of an increasing current account deficit. 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.