recommended reading

How the iPhone 5 could help re-elect Obama

An Obama supporter holds up an iPhone during a 2008 rally.

An Obama supporter holds up an iPhone during a 2008 rally. // Jae C. Hong/AP file photo

If the iPhone 5 boosts the GDP as much as this JP Morgan analyst says it will, Barack Obama might not have to worry about the economy crippling his chances against Mitt Romney. The new phone, which Apple will announce this week and release shortly thereafter, could add between a quarter and a half of a percentage point, J.P Morgan's chief U.S. economist Michael Feroli told The Wall Street Journal's Sudeep Reddy. Election modeling using the current GDP and inflation data has found that Obama will either find himself in a close election or in "serious trouble," as The New York Times's Jeff Sommer explains. "The low inflation rate is a plus for the president, while the mediocre G.D.P. growth rate is a problem," he wrote. We won't have the actual GDP figure until after the election, which some might argue means the iPhone came out too late. But, if Apple has a bonanza blow-out sales of 8 million phones, as Feroli predicts, the spillover effect of this stimulus will happen much sooner. Retail sales will pick up, the economy will perk up, people will feel better. Voters might now know the exact GDP figure in our heads, but they will know in their hearts. Of course, this prediction that the "iPhone 5 could singlehandedly rescue the U.S. economy," as The Washington Post's Brad Plumer puts it, sounds a little hyperbolic in the first place. The iPhone 4S, which had record setting sales, only lifted GDP by 0.2 percent, which is still exciting for our economy, but maybe not enough for an incumbent's reelection effort. 

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.