And they will spend more on entertainment and clothes as well. In fact, they will come to dominate most consumer categories. So, one of the bigger surprise of the next decade could be a high-growth market inside America with all the characteristics of an emerging market, including abundant workers and consumers. Everything from major retail to manufacturing to labor-intensive services thus represents a great opportunity for investment. However, like the earlier emerging markets, sustained momentum is not inevitable.
Several scenarios are possible.
If high growth persists in the overall U.S. economy, then it is increasingly likely that more and more of today's poor will become middle class. They will repeat the experience of many whites in the last similar wave of growth, in the '50s and '60s. They will own homes and cars. They will have savings accounts, medical insurance, and send their children to college. Falling prices and increasing demand for labor will work in their favor.