Live data from Hacker News

Why America's economy is soaring ahead of its rivals

ft.com

141–150 of 1001 posts

Re: Why America's economy is soaring ahead of its rivals

#141

> the improvement was largely down to reconstruction efforts partly funded by the US via the Marshall Plan Most of the improvement was in Germany, which received far less MP money than Britain and France. Postwar prosperity correlates with the level of free markets. Germany embraced free markets up until 1970, Britain and France did not.

East Germany did better than its peers in the Soviet block, and West Germany did better than its peers outside of it.

People love to point at policy, because it's a thing we can control, but the most important factors are often cultural issues we both don't control, and don't entirely understand.

Re: Why America's economy is soaring ahead of its rivals

#142
> Anecdote of shitty AI company raising a fuckton of money

> Mention of GDP with no other metrics

> No mention of inflation

> No mention of QE

> No mention of interest rates

This is propaganda. When your central banks control the world's reserve currency it's pretty easy to make sure that the line goes up every year. The British Empire didn't have their wealth because of their superior system, they got it from imperialism.

Before you downvote please just reflect on what I'm saying a little bit. Do the changes you see on the ground reflect this narrative of economic growth? I see a little bit locally, mostly from the CHIPS act and infrastructure acts, but it doesn't correlate with an improvement in QOL and certainly infrastructure projects are not unique to American capitalism.

Re: Why America's economy is soaring ahead of its rivals

#143

Earlier 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.

> virtually nothing

Older kids will only have virtual needs. They'll have a job and health insurance.

Re: Why America's economy is soaring ahead of its rivals

#144
post #84

[flagged]

The only one provoking a war in Europe is Putin. And the Germans destroyed their energy sector themselves.

Are you under the illusion that nuclear would have helped, or are you complaining they didn't keep burning coal?

Re: Why America's economy is soaring ahead of its rivals

#145

Earlier quoted context omitted.

My theory is that other countries' trade is so closely tied to the US Dollar that when the Federal Reserve prints money it's not just diluting the US Dollar but all currencies. The US is effectively taxing the world, to pay for its own spending. As evidence that the US Dollar plays a large enough role for this to be the case, half of the banks bailed out in the TARP program were foreign to the US ( https://www.europe…

> My theory is that other countries' trade is so closely tied to the US Dollar that when the Federal Reserve prints money it's not just diluting the US Dollar but all currencies. The US is effectively taxing the world, to pay for its own spending. Yes. The BRICs economic group has been trying to launch their own currency for a while now. This is one of the reasons for it. Trump has threatened to impose 100% tax on th…

> BRICs economic group has been trying to launch their own currency

It's only been Russia (and to a certain extent China).

India and Brazil have both vetoed any attempt at a "BRICS Currency".

Re: Why America's economy is soaring ahead of its rivals

#146
Thomas Sowell says that equality of opportunity leads to inequality of outcome. And this is the main difference between America and the rest of the world. The articles cites innovation-growth v cost-cutting as sources of increased productivity, and this parallels this dichotomy.

People interested in equality of outcome and a level playing field have to compete on cost. There's a social stigma against sticking out and achieving more, lest you become unequal, and the governments are well aware of that.

Meanwhile, innovation literally desires to reward disproportionately he who comes up with the new product. The entire purpose of the American economic system is to produce inequality.

This, combined with America's relative freedom from prejudice, is an unstoppable juggernaut. It is absolutely insane how easy it is in the United States to be handed money with limited liability to go and do whatever you want with it. This is a true blessing, and we see it not just in venture capital, but in the plethora of small businesses, as well as the plethora of credit (for better or worse).

Yes, there are problems, but I think history will show that this model is ultimately more sustainable. While true that America's productivity growth has only really taken off over the last century or so, even before then, it represented a formidable economic player.

Re: Why America's economy is soaring ahead of its rivals

#147

Earlier quoted context omitted.

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.

Yes, COVID made it even worst. But this has been happening since before COVID.

Re: Why America's economy is soaring ahead of its rivals

#148
post #14

This 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…

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.

This feels like a huge generalization to me.

The US, UK, EU and realistically most developed countries I would say have fairly similar quality of life within margin of error. I've travelled a fair amount and everywhere is basically the same.

For an individual it's really going to come down to lifestyle and what you prefer. Some people like urban living and walkability, if that's you then you probably want Japan or old world metropolitan European cities. Some people want a house on a few acres and national parks the size of countries, if that's you then you probably want the US.

Working cultures are different but then there is no average on that either. People on HN tend to assume everyone is an office worker or something which is actually a fairly narrow slice of the middle of the spectrum.

Equally though, online (you can see it in this thread) there's sometimes a weird focus on the absolute worst outcomes which I've always found baffling. If you're planning to become a poor fentanyl addict then yeah, don't go to the US, find a country with a safety net, it'll be more fun.

Re: Why America's economy is soaring ahead of its rivals

#149

Earlier 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.

Where does this notion come from? Many Europeans cannot even afford proper AC in summer and heating in winter.

Speaking of notions coming from highly dubious places....

Re: Why America's economy is soaring ahead of its rivals

#150

Earlier 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.

You look stressed, maybe you can do some talk therapy through the socialised health care system :)
Post reply on HN