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Lessons from America’s astonishing economic record

economist.com

481–490 of 528 posts

Re: Lessons from America’s astonishing economic record

#481

Earlier quoted context omitted.

Canada, England, Brazil are far poorer and have way better health systems. I don’t understand how that’s a No True Scotsman fallacy.

The US has the best healthcare in the world, period. It's just not cheap. Brazil isn't even remotely comparable.

The best healthcare is available in the US, but it is not the best health care system. The system is awful in almost every possible dimension. And tying it to employment is one of the worst features.

Re: Lessons from America’s astonishing economic record

#482

My 2 cents, some of the reasons America succeeds: (fact) America is a single market with a single language with basically a single set of regulations. Expansion is cheap in America. It makes a hell of a lot more sense to expand to another US city than it does to expand to Norway or New Zealand; but for a company in those countries, expansion is very expensive, expanding requires new laws, regulations, business entiti…

"(fact) America is a single market with a single language with basically a single set of regulations."

I'm probably being pedantic, but: the "single set of regulations" really is an oversimplification. Each state has it's own rules in addition to Federal regulations (trying selling cars in California that meet Federal emissions standards, but not California's). Plus, there are state taxes to consider.

Re: Lessons from America’s astonishing economic record

#483

Earlier quoted context omitted.

While I agree with you that free markets are a very powerful benefit to any state, you're biased in favor of it being the driver of America's success. America has access to both oceans, which means maritime access to the entire world without being able to be blockaded along the way easily. This is asymmetrical, it doesn't necessarily confer advantage the other way around. It has an absolutely massive population, and…

"America has access to both oceans, which means maritime access to the entire world without being able to be blockaded along the way easily. This is asymmetrical, it doesn't necessarily confer advantage the other way around. It has an absolutely massive population, and unimaginable amounts of diverse resources." If those matter so much, Mexico should be much stronger than it is. Unblockable access to two oceans, big…

Well, yes, but that explains other phenomena that lead to this. Mexico has had a lot of state blunders in the past 150 years that have led to it being behind the US, and the US got there first. Once someone gets there, they necessarily have to try to prevent someone else from doing so. Mexico could've, but they made a lot of mistakes along the way that set them behind. Lawlessness is a symptom of these blunders.

Re: Lessons from America’s astonishing economic record

#484
post #412
post #373

Earlier quoted context omitted.

It's not really that remarkable. 98.6% of Canadas population lives in provinces that border the US. And provinces don't have much population. Outside Ontario, no province has more people than NYC. I would imagine more trade would happen with a land-bordering country with 90x the population than with a neighboring province. Or, to put it another way, I would not be shocked if every US state trades more with China than…

> Or, to put it another way, I would not be shocked if every US state trades more with China than it does with any other state. No. No US state has trade with Canada at more than 15% of state GDP https://www.reddit.com/r/canada/comments/6vism4/canadaus_tra... >, and Canada is a bigger trade partner for the US than China.

"No US state has trade with Canada as more than 15%" doesn't disprove that "every US state trades more with China than it does with any other state". GDP and interstate or international trade are pretty different concepts.

And while Canada is a bigger trade partner in total than China, I'm willing to bet that China is more evenly distributed between the states as a trade partner.

Re: Lessons from America’s astonishing economic record

#485
post #368

Earlier quoted context omitted.

I have never seen any evidence that Americans are more ambitious than people from other nationalities. No studies, nothing. Not have I even ever heard a theoretical reasoning why this would be the case. I assume it's just the general "my group is the best" baseless bragging.

Not sure studies would be particularly helpful for that, anecdotes and feelings are the best you'll get. But FWIW it's been my experience that Americans are more ambitious than people from other countries, including myself.

If you're not from the US and you meet people in the course of business, then obviously the people you meet are going to be more ambitious. It's selection bias. That's what it takes to reach across the ocean to seek out new business opportunities.

Re: Lessons from America’s astonishing economic record

#486

Earlier quoted context omitted.

Japan is a relatively populous single market with a single language -- about 125 million people at present. It's smaller than the USA, at about 332 million; but almost 60% larger than the most populous Western European country, Germany.

Your data are wrong. Germany is home to approximately 83 million people. Japan 126 million. Japan is 40% bigger than Germany, not 60%. US is roughly 334 million. Europe is rougly 748 million, of which the EU is roughly 447 million.

What data is wrong?

Germany is the most populous Western European country. The figures that you quote for the EU have nothing do with the comparison we're making in this thread.

I don't see how the figure for a percentage that you're quoting is compelling in any way:

126 / 1.6 = 78.75

126 / 1.4 = 90

1.6 * 83 = 132.8

1.4 * 83 = 116.2

Re: Lessons from America’s astonishing economic record

#487

Earlier quoted context omitted.

It’s more than say, Spain+Germany+France+Italy+Uk

Well I guess the US has this problem too. I lived in a town where a significant portion of the population didn't speak English fluently

Well, even if you put language aside. Each European countries is still wildly différents.

Less and less, that’s true.

But regulation, borders, culture, habits, buying power, taste…

The first startup I worked for was wildly successful in France. We had dream of conquest of all Europe, of course.

Each new country was a headache, nothing to do with langage. ( language was the easy part )

People wanted different stuff. We were able to make it to Italy and the UK, got laughed out of the room in Germany. Never got more than mild traction in Spain and nobody talked to us in Portugal.

Randomly we got Chinese customers. Super hyped.

Then we realized that while doing all that … we had let our primary market down and that someone else was eating our lunch there.

Got bankrupt a year after.

It was poor execution. But I still think that expending from Nebraska to Missouri is easier :)

Re: Lessons from America’s astonishing economic record

#488
post #371

Earlier quoted context omitted.

Just to give you additional data point with cell phone prices. I’m French but I’m living in the Us since a decade or so. Cell phone prices are considerably cheaper in France ( €30 gets you unlimited everything on mobile and €80 is a combo for fiber + mobile plan ) But yet, that a heavily regulated market. If I’m correct there is 5 licences. All other companies have to buy and resell bandwidth thought those 5 licence.…

30 euro seems reasonable. In the US you can get unlimited everything for $30 a month (well, after some amount of data in the gigs I think it downgrades from 5G in the fine print).

Maybe I missed that, what carrier do you have in mind?

Re: Lessons from America’s astonishing economic record

#489
Much of the world and even individual economies are becoming "winner take all" due to variations on the network effect: everyone goes there because everyone else goes there.

China became the world's factory by having lots of manufacturing expertise in one spot such that few others could compete. The US lacks certain kinds of tooling, parts, and factory expertise, jacking up costs above China's. (The Chinese gov't initially subsidized their factories.)

The "winners" are convinced they are geniuses, when in fact they were just slightly ahead of the pack or slightly luckier and surfed on the network effect snowball.

Re: Lessons from America’s astonishing economic record

#490
post #482

My 2 cents, some of the reasons America succeeds: (fact) America is a single market with a single language with basically a single set of regulations. Expansion is cheap in America. It makes a hell of a lot more sense to expand to another US city than it does to expand to Norway or New Zealand; but for a company in those countries, expansion is very expensive, expanding requires new laws, regulations, business entiti…

"(fact) America is a single market with a single language with basically a single set of regulations." I'm probably being pedantic, but: the "single set of regulations" really is an oversimplification. Each state has it's own rules in addition to Federal regulations (trying selling cars in California that meet Federal emissions standards, but not California's). Plus, there are state taxes to consider.

Compared to the difference in regulations between France and Germany, _let alone_ the difference between France and Nigeria, US states have very little to differentiate them.
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