Technology and Economic Transformation

Old Economy: everyone is employed taking in each other's laundry

New technology: washing machines -- will we all be unemployed

Services to the rescue: in particular financial services

New Economy: Everyone takes in everyone else's money laundering.

I was talking to myself about Iowa because I saw a dumb film about a small town guy in the big city of Cedar Rapids (including the obligatory fancy wedding reception with a cake with a little sugar statue of the bride and of the other bride because ha ha Iowa has gay marriage unlike California).

I said to myself (I am patronizing and pedantic with myself when I'm not blogging) Iowa is a farm state. That doesn't mean most people are farmers but if you look at the Iowa current account most of the money flowing in is in exchange for corn and stuff (or is Federal subsidies). Then I wondered if that is true or if more flows in in exchange for financial services. What is the gross flow of interstate financial services in the USA ? Anyone doubt it is larger than GDP ?

By the way, the film was about FIRE -- in particular a convention of insurance agents. I think the it was made on a bet -- that sounds like the most boring thing in the world -- can we make a film about it with sex and violence ? Sure you can.

I'm not telling you the title, not because I fear you will buy tickets to the film (which I liked) but because it was just what was on channel 4 of UA9688 IAD to FCO.