El-Erian Says Disruptors ‘From Below’ Are Transforming U.S. Economy

Industry after industry in the U.S. is being affected by disruptors 'from below.' That's according to Allianz Chief Economic Advisor Mohamed El- Erian speaking with TheStreet's Rhonda Schaffler at The Milken Institute Global Conference. Unlike disruptors 'from above' like central banks being more experimental, El-Erian says these not well understood disruptors 'from below', like Facebook (FB) - Get Report , Amazon (AMZN) - Get Report and Google (GOOGL) - Get Report , continue to challenge established companies by combining content, technology and behavioral science. And they're not afraid to self-disrupt or fail to gain ground. While this phenomenon can make inequality worse, El-Erian says overall it makes him more optimistic about the U.S. economy and its entrepreneurial spirit and potential. Separately he says if the U.K. does exit the European Union there will be initial economic and financial impacts but longer term it can clarify what the EU can become. TheStreet's Rhonda Schaffler has details from Los Angeles.