Bush Aide Stumps for Economic Optimism at Comdex

Carlos Bonilla, Special Assistant to President Bush's National Economic Council, spoke at Comdex, and was the picture of economic optimism during the keynote address he presented. Bonilla reported that the economy is 'turning around' due to the spark of activity occurring in the technology sector, noting that the technology sector of the economy is predicted to grow at more than 3% next year. Bonilla suggests that the hard hits suffered by the technology industry have strengthened it overall. "In many ways, things have come full circle," he said. "For now, it's no longer the effect that the broader economy has on the tech sector, but rather the effect that the tech sector has on the broader economy."

Surplus capacity is the "fly in the ointment" when it comes to technology sector growth, Bonilla warned. "To the extent that we over invested in technology, we have to expect the tech sector to lag [behind the wider economy]. ...The [surplus] will disappear over time from a combination of capacity utilization and obsolescence. But until it does, it will remain a drag on the industry."