Bill Gates: Recovery Will Take Years - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Mobile // Mobile Applications

Bill Gates: Recovery Will Take Years

Microsoft chairman says there are no quick fixes for the deficit-burdened economy.

Despite some recent glimmers of hope, Bill Gates believes it could take several more years for the economy to fully rebound from the great recession, which many economists say began in earnest in late 2008 with the collapse of Lehman Bros and other investment houses.

"When you have a financial crisis like that, it's years of digging out," the Microsoft chairman said Monday during an interview on ABC's Good Morning America.

"The budget's very, very out of balance," Gates warned.

"And even as the economy comes back, without changes in tax and entitlement policies, it won't get back into balance. And at some point, financial markets will look at that and it will cause problems," Gates added.

Gates' comments come three days before Microsoft is slated to announce earnings for its fiscal second quarter. Analysts surveyed by Thomson Reuters expect the company to post earnings per share of 59 cents, on revenue of $17.79 billion.

In 2008, Microsoft posted second quarter earnings of 47 cents on $16.63 billion in revenue.

The interview coincided with the publication of Gates' annual letter from his charitable organization, the Bill & Melinda Gates Foundation. In the letter, Gates said he talked to co-trustee Warren Buffett "more than ever" during the past year to gain a better understanding of the financial meltdown.

"Although the acute financial crisis is over, the economy is still weak, and the world will spend a lot of years undoing the damage, which includes lingering unemployment and huge government deficits and debts at record levels," Gates wrote.

Still, there are indications that some markets are stabilizing and are in line for growth.

Research firm Forrester is calling for tech spending in the U.S. to grow 6.6% this year, to $568 billion, after being down 8.2% in 2009. Worldwide spending will jump 8.1% to more than $1.6 trillion, following a decline of 8.9% last year, according to Forrester.

Microsoft shares were up 1.42%, to $29.37, in early trading Monday as stock markets rebounded from Friday's sell off.

Application mobilization tools are both more effective and more confusing than ever. To develop this report, InformationWeek Analytics polled nearly 700 business technology professionals and interviewed mobile application experts. Download the report here (registration required).d

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
White Papers
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Flash Poll