Todd G. Buchholz, Best-Selling Author and Honored Economist, Declares: The HIP Economy Rises

LOS ANGELES, CA, UNITED STATES, March 17, 2025 /EINPresswire.com/ -- While headlines focus on America's $36 trillion national debt and ongoing political debates, Todd G. Buchholz, a best-selling author and respected economist, identifies three key forces shaping the U.S. economy. He calls them the "HIP" factors: Health, Information, and Power, which he believes drive innovation and resilience.

For decades, rising obesity rates posed a significant health challenge, increasing risks for diabetes, heart disease, and cancer. However, recent advancements in medicine have begun to turn the tide. In 2023, obesity rates saw a modest but meaningful decline, marking a shift toward improved public health. A new class of medications originally developed for diabetes has gained widespread attention for its remarkable impact on weight management. These medical innovations, alongside growing awareness of health and wellness, are helping individuals take charge of their well-being and could significantly reduce long-term healthcare costs.

Beyond pharmaceuticals, wearable technology such as smartwatches and fitness trackers has empowered people to monitor key health indicators in real-time. The renewed focus on fitness and wellness is also reflected in efforts to reintroduce school physical education programs, aiming to instill healthy habits from an early age.

The Information revolution has transformed access to knowledge, eliminating traditional educational barriers. Learning resources were costly and limited decades ago, but today, the Internet offers vast, free access to high-quality educational materials. Platforms such as Wikipedia, Coursera, and Khan Academy enable individuals worldwide to gain skills and knowledge at little to no cost. Online learning platforms have expanded from 400,000 users in 2019 to over 220 million in 2024, opening doors for students and professionals alike. According to the World Bank, each additional year of schooling can increase earnings by an average of 10%.

Artificial intelligence is accelerating this trend, enhancing productivity and efficiency across industries. While concerns about job displacement persist, AI-driven tools are proving invaluable to businesses by streamlining operations, improving customer engagement, and fostering innovation.

Energy costs, a major household expense, have also shifted in recent years. Oil prices have declined 35% from their 2022 peaks, contributing to lower gasoline prices and increased disposable income for American families. Advancements in energy storage and the development of new modular nuclear power plants by major technology firms signal a push toward more sustainable and efficient energy solutions.

Despite ongoing economic and geopolitical challenges, history demonstrates that progress often emerges during periods of uncertainty. In the late 1970s, economic struggles led to unexpected growth in the following decade. Similarly, the aftermath of the 2008 financial crisis set the stage for transformative technological advancements.

"Rather than focusing solely on negative headlines, we should recognize the powerful innovations driving the economy forward," says Buchholz.

Health breakthroughs are improving lives and reducing healthcare costs. The expansion of digital learning is democratizing education. Lower energy costs are providing financial relief. According to Buchholz, these HIP factors offer compelling reasons for optimism in an ever-changing world.

Todd G. Buchholz, a former White House director of economic policy under President George H.W. Bush and managing director of the Tiger hedge fund, is the recipient of the Harvard Department of Economics’ Allyn Young Teaching Prize. He is the author of New Ideas from Dead Economists (Plume, 2021) and The Price of Prosperity (Harper, 2016) and co-author of the musical Glory Ride.

Amanda Kent
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