4 ms·

the US's advantage is not that people are self employed. it is that one can start a business and grow it rapidly (or slowly and steadily), eventually hiring a

the US's advantage is not that people are self employed. it is that one can start a business and grow it rapidly (or slowly and steadily), eventually hiring a lot of people and/or creating efficiencies for those using the product or service. in other words, its the ability to be entrepreneur and not have boot anchors placed in you path. having many small shops making products by hand is not what creates wealth

jules 17y ago
I agree, and politicians agree more and more too, even the left wing wants to make it easier for new companies, especially technology companies (and in many ways center right wing in Europe is left of left wing in the US). Unfortunately it's still int he "talk" stage and it's unclear if they will enter the "do" stage soon. But the numbers show that the US is currently consuming a lot more wealth than it is creating whereas the EU is producing more. Why is this despite US's focus on economy and EU's focus on welfare states? This may be because of a higher standard of living in the US and not because of lower productivity.
- stretchwithme 17y ago
  I believe the US is consuming more than it is producing because government is borrowing so much and because the private sector borrowed so much due to the Fed's chronically below market interest rates. All this borrowing makes it inevitable that the US consumes more than it produces. It must import as much goods and labor as it borrows, just as you would if you borrowed a large sum of money. You spend that money to get things from other people or to get their labor. And you will have to pay them back eventually, which is when you will produce more than you consume. So, while the US may produce more new business and more wealth than other systems, there is also another thing happening at the same time. Namely, all of the borrowing done to create houses and government services we really cannot afford and probably don't need anyway.

jules 17y ago

I agree, and politicians agree more and more too, even the left wing wants to make it easier for new companies, especially technology companies (and in many ways center right wing in Europe is left of left wing in the US). Unfortunately it's still int he "talk" stage and it's unclear if they will enter the "do" stage soon. But the numbers show that the US is currently consuming a lot more wealth than it is creating whereas the EU is producing more. Why is this despite US's focus on economy and EU's focus on welfare states? This may be because of a higher standard of living in the US and not because of lower productivity.

stretchwithme 17y ago
I believe the US is consuming more than it is producing because government is borrowing so much and because the private sector borrowed so much due to the Fed's chronically below market interest rates. All this borrowing makes it inevitable that the US consumes more than it produces. It must import as much goods and labor as it borrows, just as you would if you borrowed a large sum of money. You spend that money to get things from other people or to get their labor. And you will have to pay them back eventually, which is when you will produce more than you consume. So, while the US may produce more new business and more wealth than other systems, there is also another thing happening at the same time. Namely, all of the borrowing done to create houses and government services we really cannot afford and probably don't need anyway.