Innovation, Technology and Jobs Group Documents... · 16 Innovation, Technology and Jobs As a share of GDP, corporate profits are rising while compensation is falling. Capital versus

September 21, 2015

Innovation, Technology and Jobs

Presented by:

Jack Ablin, CFA Chief Investment Officer BMO Private Bank 312-461-7756

1 Innovation, Technology and Jobs

Innovation in America

1790 The Cotton Gin 1879 The Light Bulb 1850 The Steam Engine

1920 The Assembly Line 1958 The Integrated Circuit 2007 The Smart Phone


Jobs in America


American Lifestyles


Components of the U.S. Workforce




$ Va

lue

Productivity

Ideas

Skills

Inflation





Over the last twelve months, employers

required a bachelor’s degree for most net new

jobs created.




The demand for talent remains strong.



1838 1995

J.K. Rowling Charles Dickens

Value of Ideas


Value of Ideas


Value of Ideas

Ideas are great. Adoption rates

have accelerated making them

more valuable.


As a share of GDP, corporate profits are rising

while compensation is

falling.

Capital versus Income


Growth of capital, fueled by

ideas, has far outpaced income

growth.

Capital versus Income


Innovation

The driverless car promises to propel

a nation of vehicles safely.


Innovation

At last count, nearly two million Americans drive

for a living.


Public Policy Implications

• Inflation • Immigration • Education and Training







The Fed is trying to raise

inflation expectations



Current Proposals could

substantially increase targeted

Immigration



H1B visa recipients fill a void in highly-skilled

positions.



H-1B employees are highly skilled

workers



Source: “New American,” The Partnership for a New American Economy

42% of America’s Fortune 500

Companies were Founded by 1st or

2nd Generation Immigrants



Online education is growing rapidly

as students gradually embrace

it.





Countries that don’t rely on

natural resources for growth must instead rely on brain power.



Cheap Capital

Government Recipe for Productivity

Governments don’t create growth. They create the environment for growth.


Disclosure

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