The global economy as we know it now was the product of two distinct periods.
The first was the industrial revolution between the 18th and 19th centuries that turned the developed world into manufacturing economies.
The second revolution began in 1990s. Information technologies and telecommunications helped expand a so-called “weightless” economy.
CGTN’s Ahmad Coo has more.
Using the U.S. as an example – the country’s total output in 2001 weighed the same as it did in 1901, yet its total value was twenty times greater. For physical products, output has pretty much stayed the same for the last century.
So, what exactly is the weightless, or dematerialized, economy?
It refers to the products and services that have no physical weight: computer software, for example.
In developed countries, intellectual capital, not manufactured goods, represents an ever increasing proportion of GDP.
Weightless economies have two main characteristics: it costs a lot to develop and market products like video games, an app or streaming music platforms and weightless products can be distributed infinitely—at little to no cost.
When Apple, Google or Tencent release a new app, they can sell it – and deliver it – to anyone in the world via the Internet.
Experts predict the weightless economy will help developed countries double the size of their GDP by 2036.
Brian Schaitkin talks about the weightless economy and how its impacting the global economy
CGTN’s Rachelle Akuffo spoke to Brian Schaitkin, a senior economist at the Conference Board about the growing importance of the weightless economy and how its transforming countries