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An Investment-Led Economic Recovery

Jun. 01, 2020 1:31 PM ET96 Comments
James Hanshaw profile picture
James Hanshaw


  • "There are decades when nothing happens; and there are weeks when decades happen”.
  • The political response to the coronavirus has dramatically proved Lenin to be right.
  • Unfortunately this has been in negative ways for most but other lessons from the past could pave the way for a better future for many.
  • That paving will be via massive infrastructure investments leading to a new Industrial Age.


This is not an article about specific companies to invest in. It is about the new normal the world economy must head for in the future and that has enormous implications because the past norms will not return for some sectors including retail, office space, hospitality and aviation. The internet has for several years been creating change in retail and the virus has become the catalyst for rapid and possibly permanent, adverse change in the others. It could also be the catalyst for much needed positive change for much else in the economy and thus for the lives of many. That also means investment opportunities in certain sectors and I shall mention some of those later.

First a word on where we are.

Economic Decline

Even before the, in my view, unbalanced response to the virus problem incomes for the middle class were being squeezed in most western countries and debt - corporate, government and household - was going up in a failing attempt to maintain living standards.

There is more on that situation in the US in this Bloomberg article and that does not include student loans that are now approaching a record high of $1.6 trillion and for many all that gained was a worthless degree leading to a worthless job. A study by the think tank Demos shows that debt burden alone resulted in an overall lifetime wealth loss for a married couple of $208,000. There has been much political talk over several years about canceling student debt but nothing has yet been done. My first article on SA, published nearly 5 years ago, expressed my ideas for a way forward on this via Fed Student Property Bonds That - or something like it - would be a boon even more so today.

It worth noting

This article was written by

James Hanshaw profile picture
I am retired apart from managing family investments - mostly equities. I live near Zürich, Switzerland. I keep physically fit by walking and mentally fit by writing on philosophy, economics and politics. My writing is published internationally. My hobby is art - pencil on paper drawing. For those interested in my kind of art and political ideas I can be contacted at jbhanshaw@gmail.com.

Analyst’s Disclosure: I am/we are long CTL, CAT, DE, J, LIN, MTZ, SRAIL, UNIT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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