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First Trust Chief Economist Brian Wesbury on the potential economic impact of Apple’s next iPhone.
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Those people that things that I've found is the mother of all Smartphones -- Sony -- you after.
One of them but the example that other companies look to and strive to be it is for sure.
It could be more than that much more could be these super power of all mobile funds because well.
Regarded as a highly educated economists are saying.
That tomorrow's expected launch of the iPhone 5 could actually help save our economy that's possible JPMorgan's chief economist says sales of the iPhone.
Could add more than three billion dollars for the US economy -- should government be worried joining me now is first dress cheap economy.
Thanks for joining us and I.
That the iPhone is doing what they're bad and what congress and what the president can't do and that stimulating the economy right.
Yeah -- absolutely -- great to be with you you know this is not unprecedented.
In in 1964.
Lee Iacocca and Ford came out what the mustang.
And you can go back and look at GDP data and see what that did it boosted growth and there's no doubt that this is happening again and apple apple itself.
-- soul as sold billions and billions and billions of dollars of equipment.
That -- that just didn't exist years ago right -- What's more important -- stimulus.
And economists would say that there are two ways to simulate the economy two schools of thought the government can do it on the demand side or maybe there is innovation and technology out there.
That gets people to go -- and -- and then also creates productivity in the economy which is what we're talking about here are some have argued that though if you go and spend money in an iPhone.
It's money that you would have spent.
Going out to dinner -- doing something different so it's not really.
Increasing economy it's displacing other spending what do you say to -- Yet yeah that's what Paul Krugman has said.
You know by the way it's kind of funny because he's defending stimulus right so of course he has become -- they have a private company doesn't it can't be real.
But you don't think about this for a second if -- if you bias tractor you know go back a hundred years and that means you don't buy horses.
Does that mean the economy's not any better off -- were better off because -- more productive that iPhone is a hugely.
Productive instrument and now it's gonna have four G and there's going to be more apps and more you can do -- that.
More videos that you can watch all of these things are going to be able to boost productivity.
That's what creates growth -- Brian -- -- your friends and calling everyone does that make you more productive I mean are you sure -- productivity and here I want that to be the case.
-- I but I'm picturing people sitting there looking YouTube and I don't know that that's it may be taking away from productivity.
That there is no doubt that you know people do a lot of leisure time activities and we can think of sports or movies or music.
And a lot of things that you could argue don't really had -- to it to wealth or growth over time.
But there are lots of things that this phone can do they can make your business better.
-- also allow you to do your personal life more efficiently and therefore get more business done.
So I would argue that the iPhone and by the way the Blackberry that -- a lot of these instruments after they wouldn't exist unless they made life better and life analyst stimulating the economy where the government can't I love it Brian -- great thanks for coming -- -- have become accent.
Thanks --
