4 ms·
When I was young I remember the world used to be beholden to the demand of the american consumer. What they wanted drove the export of entire economical regions
by 1971genocide 11y ago
When I was young I remember the world used to be beholden to the demand of the american consumer. What they wanted drove the export of entire economical regions in Asia.
Now it seems the giant in the room that everyone needs to accommodate is the Chinese consumer.
- hackuser 11y agoA good point. But consider also that in a free and open society with limited government, consumers have more influence. In China it might be the Chinese government that everyone needs to accomodate. Certainly that has been a focus of the movie industry.
- nickbauman 11y agoThe world has been beholden to US consumer demand since the end of the Bretton Woods system (which ended when Nixon unpegged the dollar from gold in 1973) up until the collapse of the US center of gravity in 2008 (from which we haven't really recovered). Prior to that it was the opposite: Demand came from the periphery, and the US was the world's factory. Where we are now is uncharted waters. US demand is required to fuel the Global Surplus Recycling Mechanism. With its absence, China does not have enough domestic demand to replace the US and does not have enough power to start its own GSRM.
- 1971genocide 11y agoIs that you ? Is it the former greek finance minister ?
- adventured 11y agoThe US consumer market today is three to four times larger than the Chinese consumer market. So no, the roles have not switched yet, not even close. The US economy growing at 2-2.5% is growing nearly as fast as China's economy today (given their non-fake rate of growth is more likely in the low single digits of around 3% to 4%).
- fspeech 11y agoAnd how much of the US consumer market is tradable goods?