Keeping the spirits up on the gloom front comes today’s FT comment piece by Goldman Sachs chief economist Jim O’Neill. Good on ya, Jim.
He writes that Boom time for the global bourgeousie is here.
He’s predicting that 70 million people a year globally will be entering the middle class. And that this is set to continue for the next 20 years – powered by the BRIC econimies of Brazil, Russia, india and China (and that, even with out them, the ‘next eleven’ will produce 20million bourgeouis families).
So, while Northern Rock and bad summer weather may make us feel gloomy, the global outlook is rosier than the London orbit. There’s a market of moneyed consumers the size of the UK population arriving at the checkouts globally each year to stock up on all the toys.
I take heart from this because it compounds an analysis done by David Smith in the Sunday Times some months ago about the engine for world growth. In the 1930s, said Smith, it was the hungry US. In the 1940s it was the rebuilding of WW2 Europe. In the 1990s, it was the fall of the Iron Curtain. In the 2000s, the rush for higher living standards is coming from a much wider mass of emerging free market economies… all wanting what Europe’s had for years! QED Dave Smith
(Can’t find the earth-shattering article I wanted to believe then – and moreso now, to prove that there is a consumer willing to power us away from the downturn misery around us in London tonight).
So, from headline-grabbing wobbles… look beyond…