Thread: America: The Next Growth Economy

America: The Next Growth Economy

By Tom Winner Tom Winner
Mar 4, 4:37 pm ET

Warren Buffett described Berkshire Hathaway's (NYSE: BRK-A - News; NYSE:BRK-B - News) acquisition of Burlington National Railroad as a long-term bet on the American economy. In his book The Next Hundred Million: America in 2050, author Joel Kotkin presents data that supports Buffett's thesis, arguing that despite its current economic woes, the U.S. will remain an economic powerhouse over the next four decades.

Kotkin's claim rests upon the demographic boom going on in our own backyard. The U.S. population is expected to grow by 100 million by 2050. This growth makes America an outlier; during this time, America's economic peers will suffer from low birth rates and stagnant population growth. By 2050, a third or more of the populations in Europe and East Asia will be over the age of 65, compared with only a fifth in the U.S.

This means that the U.S. will face a unique set of challenges come middle-century. While its peers struggle with rapidly aging populations and potential labor shortages, the U.S. will need to provide its younger populace with ample economic opportunities. Kotkin theorizes that America's entrepreneurial bent, willingness to embrace creative destruction, and openness to immigration will all work to meet this need. The result will be a population that is younger, more diverse, and more dynamic than most other nations -- and a vibrant economy.

Whether or not you agree with this rosy scenario, investors with a truly long-term horizon will want to ask themselves what companies might benefit from America's coming demographic dividend. That's a tough question; much will change by 2050, just as many companies and technologies came and went in the last forty years. But it puts Buffett's railroad purchase in perspective. Railroads are as vital to U.S. commerce today as they were in 1970, and should benefit greatly during Kotkin's predicted 40-year population expansion. Even better, they have inherent moats.

Following Buffett's thinking -- steady infrastructure plays with built-in moats -- leads to companies not often associated with growth, like utilities. ConEd (NYSE: ED - News) and Southern Company (NYSE: SO - News) are conservative plays with a protected business and excellent dividends. California Water Service Group (NYSE: CWT - News) and Mueller Water (NYSE: MWA - News) will also grow with increasing populations. Obviously, investors shouldn't build their portfolios around utilities alone, but even these sleepy stocks may appreciate nicely if Kotkin's thesis plays out.

http://news.yahoo.com/s/fool/20100304/b ... ol/rx44163

I can't believe we give Warren Buffet or any of his ilk the time of day any more. The US population is in a growth spurt because of illegal and excess immigration. There is nothing absolutely nothing to celebrate about a growth in foreign population residing in country when we have no jobs or money to sustain that population.

Kotkin's ideas will certainly play out as every illegal here has four or five anchor babies. The demand on services such as power and water will be ever increasing as we will have to continually expand and build schools, housing units to accommodate the new soon to be "citizens."
American sovereignty be damned when there is a profit to be made.

vortex wrote,

Kotkin's ideas will certainly play out as every illegal here has four or five anchor babies. The demand on services such as power and water will be ever increasing as we will have to continually expand and build schools, housing units to accommodate the new soon to be "citizens."
American sovereignty be damned when there is a profit to be made. Twisted Evil

That is about all that I was able to get from the article as well. I was looking for something more insightful, no rocket science here.

Space for rent,...cheap. Just show up.........now that is a progressive economic policy.

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More Open Borders Lobby PROPAGANDA.

This propaganda piece is claiming the US will be to of the world economically because of immigration and high birthrates in the Hispanic population.

It does not say that directly, but the only reason America's population is growing rapidly is because of immigration and the Hispanic birthrate and while most second and third generation Hispanics have lowered their birthrates, the rate is off the charts with the illegal aliens.

W