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Why America's economy is soaring ahead of its rivals

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

#401

Post by corimaith »

luizfzs wrote: post #255

But is the majority of the population thriving? It is very misleading (at best) to say the economy is strong when a good chunk of the population live paycheck to paycheck. A handful of companies are thriving, but barely any of its employees.

If America isn't doing well, what does that make the rest of the world? An absolute metric isn't going to be objective, but from a financial and jobs perspective America certainly has it alot better. Which is what the article is about.

You're working harder perhaps, but many in other places have straight up no jobs or millions applying just for the most basic jobs. Many of those people would kill to get into America.

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

#402

Post by canadaduane »

mullingitover wrote: post #382
luizfzs wrote: post #255

But is the majority of the population thriving? It is very misleading (at best) to say the economy is strong when a good chunk of the population live paycheck to paycheck. A handful of companies are thriving, but barely any of its employees.

> But is the majority of the population thriving? It's important to understand that the stock market is a leading indicator . Everyone doesn't immediately get laid off when the stock market tanks. Everyone doesn't immediately get a raise when the stock market is roaring. A lot of people are just now experiencing the stock market mini-crash of 2022, when the pandemic helicopter money dried up. In two years a lot of pe…

This is such a great, succinct insight. I've heard various pieces of it, but you put it all together, thank you.

Now I wonder, are there historical exceptions to this general rule? Also, does the "lead time" grow and shrink substantially?

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

#403

Post by epolanski »

thuanao wrote: post #394
lifeisstillgood wrote: post #201

Tech is the problem. The internet is global (or perhaps two or three regions), and winner takes all - so global value creation is being experienced everywhere, but being monetised in the US stock market. Take tech out of the equation and the US is pretty much on par with EU, and China and India are just burning the coal for everyone else.

If you remove non-industrial and financial activity from US GDP, the economic picture is bleak. US and G7 have been steadily deindustrializing while BRICS have been doing the opposite. US GDP is misleading in the sense that it increasingly includes a large portion of economic activity that isn't actually producing tangible wealth.

But as an average European I realistically have all I need and most of my needs are either food/commodities or non-industrial services.

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

#404

Post by mrighele »

pfdietz wrote: post #144
Gud wrote: post #84

Earlier quoted context omitted.

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?

The issue is not only the nuclear, but that Germany made "all-in" on cheap Russian gas despite all the signals that it was a move with several risks: you shouldn't voluntarily put yourself at the mercy of an autocratic nation militarly stronger than you.

The fact that the politicians responsible for this are now in a way or another on the payroll of Russia tells me that this was the plan all along.

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

#405

Post by corimaith »

slibhb wrote: post #246
lifeisstillgood wrote: post #201

Tech is the problem. The internet is global (or perhaps two or three regions), and winner takes all - so global value creation is being experienced everywhere, but being monetised in the US stock market. Take tech out of the equation and the US is pretty much on par with EU, and China and India are just burning the coal for everyone else.

> Tech is the problem. The internet is global (or perhaps two or three regions), and winner takes all - so global value creation is being experienced everywhere, but being monetised in the US stock market. I don't really understand what you mean. While their reach is global, it's largely American companies that are creating the tech value, no?

This is non-mainstream marxist-influenced economics we are talking about here, only certain activities are regarded as having "value" alongside with a zero-sum view of the economy.

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

#406

Post by epolanski »

slibhb wrote: post #246
lifeisstillgood wrote: post #201

Tech is the problem. The internet is global (or perhaps two or three regions), and winner takes all - so global value creation is being experienced everywhere, but being monetised in the US stock market. Take tech out of the equation and the US is pretty much on par with EU, and China and India are just burning the coal for everyone else.

> Tech is the problem. The internet is global (or perhaps two or three regions), and winner takes all - so global value creation is being experienced everywhere, but being monetised in the US stock market. I don't really understand what you mean. While their reach is global, it's largely American companies that are creating the tech value, no?

If excel makes billions in Asia, and provides more value than it takes (otherwise why bother buying it?) who is benefitting more of it?

The companies it empowers or Microsoft's (global at the end of the day) shareholders?

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

#407

Post by jcranmer »

DonnyV wrote: post #315
ajross wrote: post #285

Earlier quoted context omitted.

> a good chunk of the population live paycheck to paycheck. Is that not true in other economies? Was that not true at some (mythical?) point in the past? What number, specifically, would you like to see before you're willing to declare "The Economy is Good"? Basically the point you made is an example of the Economics of Vibes. It's non-falsifiable and allows you to justify any position you want. We're about to start…

Family needs to make $107,700 a year to own a home. Apartment in a moderate-cost area is about $70,000-$100,000/year. Median salary in the US is $59,300 What considered poverty level in the US for: 1 person: $15,060 2 people: $20,440 3 people: $25,820 4 people: $31,200 According to recent data from the U.S. Census Bureau, around 50% of Americans make $70,000 or more annually. That means about 50% of the US can not af…

> Apartment in a moderate-cost area is about $70,000-$100,000/year.

... in what sane world is that a "moderate-cost area"? $70k/yr is well over $5k/month, and looking right now at the prices in my metropolitan area, you have to pretty much get a combo of 3 bedroom, luxury, and city-center to get something that expensive. And even then, I'd consider this metropolitan area to be high cost, just not obscene cost like SF or NY.

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

#409

Post by BobbyJo »

jandrewrogers wrote: post #386
luizfzs wrote: post #255

But is the majority of the population thriving? It is very misleading (at best) to say the economy is strong when a good chunk of the population live paycheck to paycheck. A handful of companies are thriving, but barely any of its employees.

US Federal Reserve studies indicate that the percentage of US households with no excess income after necessary expenses (as distinct from "ordinary expenses" as a term of art) is on the order of 10-15%. This definition roughly matches most people's intuition of what "living paycheck-to-paycheck" means. That isn't nothing but it implies 85-90% of Americans are not actually living paycheck-to-paycheck. There is another…

> This includes things like car payments on a new BMW or a mortgage on a big house

This also includes car payments on a used honda, and a mortgage on a small condo no? Why the exaggeration?

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

#410

Post by Romanulus »

luizfzs wrote: post #255

But is the majority of the population thriving? It is very misleading (at best) to say the economy is strong when a good chunk of the population live paycheck to paycheck. A handful of companies are thriving, but barely any of its employees.

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