According to data released on Thursday, annual GDP growth in the third quarter of the United States was 4.9 per cent, the fastest in the last two years. However, Cathy Wood, founder of the Ark Investment Management Corporation, challenged this data.
Wood writes: “Government statistics do not seem to reflect the weakness of the economy. Many companies have announced alarming weak harvests. UPS currently grew less rapidly in the United States than in 2007-2009 (during the financial crisis). After almost two years of decline, the last quarter fell by about 11 per cent.”
The CEO of Tesla (208.78, 3.02 and 1.47 per cent) transmitted Wood's post and commented that it was “interesting”.
Wood goes on to say, “Why, then, is employment still so strong in the United States that supports the Government's view? In our view, the accumulation of labour after two years of vacancies is a cause on the demand side, while the loss of purchasing power — particularly food and energy — is a cause on the supply side, but if our prediction that prices are about to collapse and profit margins are correct, then enterprises will not only be forced to lay off their staff, but will also be forced to use artificial intelligence and other automated technologies to save profit margins. Innovative solutions to get power in difficult times!”