According to Q1 data just released, the U.S. economy expanded at a strong 3.2 percent — which was higher than expected. Many analysts are drawing parallels to the current economic situation with the record economic boom of the 1990s.
What’s the resemblance? For starters, the stock market’s current rapid ascent is similar to what was experienced during the last decade of the 20th century. Fears of a possible recession were surprisingly proven wrong. Although some analysts are predicting a recession in 2019, these doomsday predictions have been put off for another time. In fact, 2019 has seen many stocks rebound to their previous all-time highs.
Moreover, the U.S. economy is currently at record lows in terms of recorded unemployment, similar to the 1990s.
Confidence in the economy is high and the stock market, like over two decades ago, is being led by the technology sector. Over half of all Americans think the economy is “good” or “excellent,” according to Gallup polling.
However, despite these comparisons, income inequality is still at astronomical highs — much unlike the 1990s. This means that there is room for some tempered pessimism, as well.
Blockchain Technology: Today’s ‘Internet Boom’
Although comparisons between today and the 1990s are apt, it leaves us with a burning question: if the 1990s had the unprecedented internet boom, what is today’s parallel? We, too, have another quiet boom happening behind-the-scenes.
Much like the internet boom of the 1990s, the blockchain space is due for an explosion. In what’s been called the ‘next stage of the Internet’s evolution,’ many of today’s blockchain companies will someday, if all goes well, become the decentralized Apples and Microsofts of tomorrow. In fact, as blockchain technology and its market share expand, its presence will only be felt more. Now, the fundamental digital infrastructure is being created to make this happen. It’s the calm before the storm if you will.
Patience is a Virtue
The Internet boom’s effects did not happen overnight. In fact, many older pundits and analysts were decrying the Internet boom in the 1990s as a ‘fad’ which would soon fizzle out. However, despite the massive dot com crash of the late 1990s, the underlying technology came out victorious. It’s arguable that the cryptocurrency crash of 2018-2019 will someday be seen in this same light.
Whether or not we are living in a rerun of the 1990s economy is a discussion worth having. A more appropriate comparison would be that we are currently living in the Internet Boom 2.0 — and, just like then, people won’t start to notice until it’s everywhere.
Do you believe the current economy is similar to the 1990s? Will blockchain technology be like the ‘Internet Boom’ going into the 2020s? Let us know your thoughts below!