Jeff Rubin: Boom Times Aren’t Coming Back, But That’s Not Necessarily Bad (Q&A)

Today, perhaps most people believe that the global economy would eventually recover, and individuals would become wealthier in the future as the economy begins to expand once again. However, Jeff Rubin, the former chief economist at CIBC World Market, has other thoughts about the statement. Rubin suggests that the economy growth is becoming slower no matter where you look. For example, China’s growth rate decreased from 10 percent to 7 percent each year, and the European countries are barely growing at all. As a result, unemployment rate becomes higher, and the later generations would not have the same living standards as today’s individuals.

This theory may sound negative, but Rubin suggests that it is not a bad thing. The society would generate new norms to fit the new economy. Instead of having a person losing his/her job, perhaps five people could take a 20% salary cut. Just like price would adjust itself as the equilibrium changes, so does employment. Individuals nowadays would probably view this idea as absurd, but they will have to agree if the extreme ever comes. After all, it is just changing the mindset and creating a new ‘normal’.

Twitter’s I.P.O. Plan Has an International Focus

Twitter has been growing exceptionally fast over the last few years, and it has just announced its intention to go public last month. With 77 percent monthly users outside of the United States, the company aims to increase its international market share by targeting foreign countries such as Japan, France, and South Africa.

However, focusing too much on the international market could potentially cause many risks for Twitter. Based on the article, a large portion of the company’s advertising revenue comes from American users even though most Twitter users are outside the country. It is very much possible that the large percentage of foreign users is just a number on the surface and has little positive effects to the company’s strength. Furthermore, lots of foreign users still have low-cost phones that does not support Twitter’s mobile app, and this fact could easily abolish Twitter’s expansion in the smartphone platform.

Ironically, Twitter’s strength in international market share is also its weakness. The company should stabilize the roots in America and balance its revenue internationally. This way, it would be easier for Twitter to become a dominant social network around the globe.