Digital disruption is slowing growth – but it will make for better economies | Stephen Koukoulas

Uber does not need to buy cars and Airbnb does not need to build hotels and apartments, which means less growth-inducing investment, at least initially

There is universal consternation about the inability of most industrialised countries to return to strong economic growth, despite zero or negative interest rates and varying degrees of fiscal stimulus. The common perception is that growth remains sluggish because monetary policy is impotent and fiscal policy ineffectual as a result of the continuing hangover from the global financial crisis.

That may be partly true, but there may also be bigger issues driving the current economic stagnation. One is the unrelenting expansion in technology and its ability to uncut and undermine old ways of doing business. While such progress will increase efficiency and productivity, the transition period can hold back the economy in what is for many industries a zero-sum game.

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