when you control the measuring stick (USA dollar)
you'll always be the tallest of them all
Why America's economy is soaring ahead of its rivals
131–140 of 1001 posts
Re: Why America's economy is soaring ahead of its rivals
#132Earlier quoted context omitted.
> How do I reconcile this? I'm curious why you care that some people have more money than you do? If you want mo' moolah: 1. upgrade your job skills 2. minimize spending (like get a roommate, eschew restaurant food, buy a used car) 3. invest the money you save If you really want to make big money: 1. start your own business
Income inequality is strong predictor of unhappiness in a population. You ask why I care about income inequality? It's because I want more happiness in my community.
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Re: Why America's economy is soaring ahead of its rivals
#133This is an interesting take, because it contrasts with GDP PPP [0] which is suggesting that America is in fact being overtaken by its rivals although it has managed to outpace the EU. China is claiming to already be ahead and India is well on track to gain absolute economic ascendancy relative to the US. And I expect that Asia is going to start developing some serious military muscle on the back of that because they…
GDP PPP is based on assumptions that - 1) People indifferent countries have the same basket of goods - probably not true for someone living in US vs Chine vs India 2) Accurate pricing data is available (which is not true for big categories like real estate in India and China - a large part of the price is under the table and unaccounted)
Re: Why America's economy is soaring ahead of its rivals
#134Earlier quoted context omitted.
PPP is an increasingly irrelevant notion in a globalized, digital, and immigration-friendly world. An iPhone or a Toyota Corolla costs the same in the US as it does in China. There is no remarkable arbitrage with real estate either - you're paying for the location and everything that comes with it. There is no secret city where the rent is low, there are plenty of well-paying jobs, you enjoy freedom of speech and can…
> An iPhone or a Toyota Corolla costs the same in the US as it does in China. A maxed out iPhone costs RMB 13999 in China, which is about USD 1925. The same iPhone costs USD 1599 in the US. In Brazil it costs the equivalent of USD 2565. PPP is still very much relevant.
That's the opposite of how PPP usually works. Purchasing Power Parity means that although you earn much less in China, things also cost less, so your cost of living and relative wealth are the same.
So PPP usually is a boost to the poorer countries. The post you're responding to claims that this is less and less relevant because the things they want to buy are global in nature. The fact that these things cost more actually reinforces that point.
Re: Why America's economy is soaring ahead of its rivals
#135Earlier quoted context omitted.
The EU is number one in quality of life and that’s all that matters to me. If we work just hard enough to maintain and maybe even improve it, other countries can do their pissing contest.
That's what the chinese thought in the 18th century :). A fun quote for the europeans here: "Our land is so wealthy and prosperous that we possess all things. Therefore, there is no need to exchange the produce of foreign barbarians for our own." - The emperor at the height of Qing China
This was in fact so true that the Brits forced the matter:
Re: Why America's economy is soaring ahead of its rivals
#136Earlier quoted context omitted.
The EU is number one in quality of life and that’s all that matters to me. If we work just hard enough to maintain and maybe even improve it, other countries can do their pissing contest.
I’m an American living in France for the past two years and cannot wait to move back to the USA. The taxes are so extreme and salaries so low that no one can even invest in the stock market. If I stay here, I will be able to leave virtually nothing to my kids when I die. The EU can take its 5 weeks of vacation and go fuck itself.
because you're an inmigrant going backwards. move south to stay wealthy
Re: Why America's economy is soaring ahead of its rivals
#137The headline is about America's rivals but then talks mainly about EU and other G7 economies. Do Americans consider Europeans their rivals? Occasional competitors sure, but rivals?
The Economist is a British magazine, originally marketed at devotees of classical liberalism, which was also called economism at the time. Its readership is largely British, and therefore seeks comparisons between the British economy, European economies and the US economies, because they are seen as peers of the UK.
This is Financial Times, not the Economist, but is also British.
Re: Why America's economy is soaring ahead of its rivals
#138Earlier quoted context omitted.
The EU is number one in quality of life and that’s all that matters to me. If we work just hard enough to maintain and maybe even improve it, other countries can do their pissing contest.
Quality of life costs money, and if we're not competitive, sooner or later that money will run out.
You are correct but it’s also more complex than that since competitive can mean many things. Currently the vast majority of government income for European countries is income tax, and income tax is usually more profitable when the market is actually competitive. Which means you need small local businesses and local production.
Having completely optimised and global logistics and value chains isn’t necessarily good for wages. We can tax the wealthy and fortunes more than we do, and we probably should, but within the current systems it wouldn’t change that much.
So in some sense many European countries are better prepared for economic downturns than the US even though European countries don’t have a lot of major corporations which don’t produce anything locally.
Obviously it’s even more complex than this. Part of what is bringing down the economies in France and Italy is workers rights. Being able to retire at 60 is great, but it was also something that was obtained when people didn’t live as long and have as few children. Though Greece seems to have managed ok without having new public management plunder their country.
Re: Why America's economy is soaring ahead of its rivals
#139> Globally, the top R&D spenders are increasingly concentrated in software and computer services
I always find these sorts of statements strange because most software is not intended to be software but rather something else. For example, Adobe's suite should be classified under 'art supplies' or 'video production'. While true that it's software, in my mind, it's like classifying a car builder as a metal fabricator.
The truth is software and computers are pervasive today. There's rarely any software (other than development tools) that are truly aimed at computers themselves. Almost all software today is used for other industries and ought to be classified under that.
Under this taxonomy, I think things would seem much more diverse.
Re: Why America's economy is soaring ahead of its rivals
#140This is an interesting take, because it contrasts with GDP PPP [0] which is suggesting that America is in fact being overtaken by its rivals although it has managed to outpace the EU. China is claiming to already be ahead and India is well on track to gain absolute economic ascendancy relative to the US. And I expect that Asia is going to start developing some serious military muscle on the back of that because they…
When I hear "America’s economy is soaring," I can’t help but think it probably just means the rich are getting richer. Don’t get me wrong—I’m not a communist. But it’s clear to me, especially when you look at how the middle class is struggling worldwide, that capitalism in its current form isn’t sustainable. What we need is some kind of “Capitalism 2.0” or “Capitalism++”. It makes no sense that someone with 300 billi…
Covid and the subsequent recovery was and is definitely K shaped. Someone with a house and assets has crushed it. Those without have only fallen further behind.