Brief look at U.S. economic drivers since the end of WWII
- What happens when ~8M Americans (5%+ of the population) came home from the war?
- All production capacity had shifted away from housing towards military efforts, and millions of jobs in building planes, tanks, ships, ammunition, etc. had been rendered unnecessary. Returning veterans got married quickly (average age was 23), and they needed homes and jobs.
- Interest rates, already low from wartime financing needs, were held down to spur spending. This combined with the GI Bill that dramatically facilitated home mortgages, and the reduction in Depression-era regulation to boost consumer credit.
- In short, “pent-up demand for stuff fed by a credit boom and a hidden 1930s productivity boom led to an economic boom.”
CB Insights Offers Insights Into Headline Economics
- Premise: The primary goal of newsletters is to get opened, as all outcomes are gated by this action.
- Open rate optimization can be done by the issuance of brand names, short & punchy titles, negativity, and surprises into newsletter headlines
Another Example of Bill Gates’ Prescience
- Gates published a piece “Content Is King” in 1993 that outlined the following:
- The real internet money will be made in content; worldwide information distribution at zero marginal cost means personal involvement and deep, up-to-date content will win out in the long run, with content creators earning large sums.
Noah Kagan Suggests Giveaways Are The Best Way To Get Email Signups
Great Businesses Sit Atop Recurring Revenue Models
- Recurring business models include: consumable (think Gillette razor blades, Keurig K-cups), subscription (Netflix, Salesforce), transaction (PayPal, Stripe, Alibaba), rental (AWS).
- The power lies in predictable revenue streams, easily managed expenses, and attractive valuations.