Know What to Believe
It is important to point out myths that are circulating among many college students, so we can be prepared for the coming economic reality.
Kotkin co-wrote an article entitled, "What Kind of America Will Gen-Xers Inherit?" earlier this year in attempt to separate myths about the future from fact-based realities.
Many people believe that since the stock market enjoyed great success in the 1990s, the economy will also prosper in the future.
Wrong.
The stock market and the economy are not the same thing, Kotkin explained. The companies that make up nation’s stock market are only some of the country’s best-run firms and are representative of a fraction of all U.S. industry. Just because the stock market soars to great heights does not mean the economy will do the same. This can also be applied the other way too, as Kotkin pointed out. "The stock market is already showing signs of weakness," he said.
A second myth is that because America is technologically advanced, its citizens are guaranteed economic prosperity.
Not quite.