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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

#711

GDP is a measure of the marketisation of society. If I go visit my grandma over the weekend, my activities do not register on GDP. If I hire a care assistant for $800 per day to do so, that's $800 to national GDP. The encroachment of the market into society correlates with record levels of mental and physical health crisis. US life expectancy has declined over the past three years, even as 'the economy' has surged ah…

The problem is that countries who don't want to compete on the marketisation of everything will lose out eventually. In your example of elderly care, an extended family in Italy may care for their own grandmother (and they'd probably live longer). But the market in Italy isn't so bouyont so the younger generation can't get high paying jobs and move out even if they wanted to. The high spending and marketisation in th…

> The problem is that countries who don't want to compete on the marketisation of everything will lose out eventually.

It goes both ways though, when shit hits the fan if your economy is based on airbnb and food delivery you're fucked.

Look at Russia, half the GDP of Germany but twice the steel production, 4 times the wheat production, 1st producer of fertilizer, huge amount of gas, &c. They had roughly the same military budget as Germany in 2020, yet the german army virtually doesn't exist.

It depends if you think our current mass productivism/consumerism practices are a bubble or the end game of humanity, history seems to prove that it goes in cycle of good and bad times. Poor countries would probably even fare better than most in case of major events, the bigger they are the harder they fall.

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

#712

GDP is a measure of the marketisation of society. If I go visit my grandma over the weekend, my activities do not register on GDP. If I hire a care assistant for $800 per day to do so, that's $800 to national GDP. The encroachment of the market into society correlates with record levels of mental and physical health crisis. US life expectancy has declined over the past three years, even as 'the economy' has surged ah…

The problem is that countries who don't want to compete on the marketisation of everything will lose out eventually. In your example of elderly care, an extended family in Italy may care for their own grandmother (and they'd probably live longer). But the market in Italy isn't so bouyont so the younger generation can't get high paying jobs and move out even if they wanted to. The high spending and marketisation in th…

The problem of marketisation is that it's a shredder for human values. The economic machine doesn't care what the constituent parts are, as long as they move correctly.

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

#713
post #655

Us Europeans are more 'detached' from the economy than people are in the USA. We basically coast along. We don't live on credit, but debit, and most people have zero investments outside their house. We're content and risk adverse and don't care much for the stock market (even though many people's pensions are tied to it). In places where higher education is cheap, or even sometimes free (like Sweden), there's less pr…

> The EU single market is largely a myth from the perspective of wanting to start a successful company that can compete internationally. It's not any easier now than it was before the EU existed. This is simply not true. There is freedom of movement for workers which means it's easy to recruit top talent across the continent. Remote work is also much simplified. There's no friction moving goods and company assets acr…

> Yet Europe is still home to some of the largest stock markets in the world including LSE, Euronext, FSE, SIX Swiss, etc.

Total valuation of LSE Euronext is laughable compared to NYSE or Nasdaq. (5,7 vs 30 + 16 trillion USD). Not to mention that largest European company is producing scarfs and handbags vs Nvidia, Apple or Amazon. It is XIX century vs XXI century comparing EU to US.

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

#714

GDP is a measure of the marketisation of society. If I go visit my grandma over the weekend, my activities do not register on GDP. If I hire a care assistant for $800 per day to do so, that's $800 to national GDP. The encroachment of the market into society correlates with record levels of mental and physical health crisis. US life expectancy has declined over the past three years, even as 'the economy' has surged ah…

I was thinking the same thing the other day. Like how much of the US GDP is tied to their suburb-living car-dependent lifestyle. What percentage of the GDP is all that infrastructure (sewage, heating, power plants, power transmission, car production, road maintenance)? Sure that create jobs, especially lower-skilled jobs which are important for society. But at the same time they didn't really need to exist. It feels…

I would like you to explain why you think the creation of infrastructure involves low-skill jobs.

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

#715

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.

> The taxes are so extreme and salaries so low that no one can even invest in the stock market.

There's a special "retirement plan by actions" (PEA) with lower capital gains tax, and the reason why most French people don't invest in the stock market is mostly lack of education around it. For most, real estate is the main way of investing/saving money. The stock market is dangerous and you can lose everything, and many have personal references (their parents/themselves bought stock from efforts such as the Eurotunnel that failed, financially) to that effect.

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

#716
post #671

GDP is a measure of the marketisation of society. If I go visit my grandma over the weekend, my activities do not register on GDP. If I hire a care assistant for $800 per day to do so, that's $800 to national GDP. The encroachment of the market into society correlates with record levels of mental and physical health crisis. US life expectancy has declined over the past three years, even as 'the economy' has surged ah…

if you hired care assistant then you have time for some other activities like work which is more profitable than cost of care assistant thus economy has more goods. Life expectancy lowers when young people die, most often in work accidents which is related to low unemployment.

You're completely missing the problem. The care assistant, being a fungible and commoditized service provider, can never provide the kinds of illiquid unmeasurable goods that are generated by long-term and durable relationships.

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

#717

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…

It's a little more complicated than that. US inflation is actually good for emerging economies which borrow in dollars, because it eases their debt burden.

US inflation is even better for the US economy which borrow in todays dollars and repays in future diluted dollars which it earns in dollars.

Foreign entites tend to earn in foreign currency, although not always and which is why China for example recyles a lot of the US dollars they recieve back into US government bonds. However the whole thing opens foreign governments and entities up to the risk that the relative inflation rates will affect the currencies (which it does).

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

#718

GDP is a measure of the marketisation of society. If I go visit my grandma over the weekend, my activities do not register on GDP. If I hire a care assistant for $800 per day to do so, that's $800 to national GDP. The encroachment of the market into society correlates with record levels of mental and physical health crisis. US life expectancy has declined over the past three years, even as 'the economy' has surged ah…

Financial press knows it too, they just don’t care. They gotta fill their pages with something, right?

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

#719
post #231

Earlier quoted context omitted.

Tech is not a 'problem'. It has replaced Finance in the pecking order of power relationships. Since US controls it , it can exert control everywhere where its tech goes. China shielded itself from it early on.

> Tech [...] has replaced Finance in the pecking order of power relationships Not at all obvious to me. Is there any particular measurable thing you're referring to, or is this just your personal feeling?

Finance people used to run the world economies, but nowadays finance and banks are heavily dependent on the tech ecosystem to function. Tech can even do finance without much capital (hence fintech) but not vice versa. That's why tech companies can command huge margins from finance institutions
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