Multiple New Economies
The world economy has been reshaped and significantly transformed recent years. While we tend to refer to this transformed economy as the new economy, according to the theory of Kondratieff cycles, this economy is not so radically new. It is a reborn essentially economy and this transformation takes place about every 40 to 60 years.
Agricultural activity dominated wealth creation for about eight thousand years before coming to its end with the first industrial revolution. The new economy may be represented as a comparable economic transition driven particularly by revolution in technology. Global development has unfolded through the succession of new economies. The first new economy, which spanned between 1770 and 1830, was characterized by water mechanization. The second new economy (1820 to 1880) was focused on steam mechanization, which led to the development of railroads. The third new economy (1870 to 1930) brought major development in electricity. The forth new economy ((1910 to 1970) contributed to the growth of the automobile industry. The fifth new economy, which began around 1960 kick-started the development of in defense, television, mainframe computers, personal computers, telecommunications, and entertainment (Norton, 1999).