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I believe this is because the domestic markets of most rich countries are saturated for stuff non-technical workers can supply. We have transportation, we have

by pimmen 8y ago

I believe this is because the domestic markets of most rich countries are saturated for stuff non-technical workers can supply. We have transportation, we have food, we have energy, we have sanitation, we have retail stores all within our grasp. The stuff we still will always need more of, such as automation and better health care, require highly specialized and skilled individuals and that's something very hard to adjust to. Meanwhile, the other economies of the world has a huge demand for the basic services and goods and thus their economies have risen dramatically. I think we are seeing a levelling off of the world's richest economies because a lot of our growth has been from capital investments into broadening international trade and leveraging. I have actually moved my investments away from Europe for now because the interest rates are so low, the innovation is so low and the political climate is becoming more and more polarized that I just think it's too risky for now.

SolaceQuantum 8y ago
I don’t think we actually have some of those things. See: Flint, MI.
- pimmen 8y ago
  What happened in Flint was a scandal because that's not supposed to happen in a rich country, that sort of water supply is an eye sore that someone should've done something about years ago. The sentiment that things like these can and should be dealt with swiftly is so engrained in us because of all the benefits we enjoy. Meanwhile, in some places where millions of people live cholera in the main water supply is Tuesday. You can make boatloads of cash if you satisfy that market demand.
- megaman22 8y ago
  Yes, a horrifically mismanaged city that collapsed into corruption when it's tentpole heavy industry packed up and left makes a great example. That's not necessarily representative of anything, though.
Gustomaximus 8y ago
I feel your on the wrong tack here, shown by looking at company profits which are still growing at healthy rates in the wealthiest nations. https://tradingeconomics.com/united-states/corporate-profits https://tradingeconomics.com/united-states/corporate-profits And I believe, though recognise this has counter arguments, if we kept (or implemented depending on region) better tax redistribution and worker wage support the first world economies would be growing at a better rate. The trickle down policy we see in most western countries has been disproven time and time again yet the politicians still rebrand and implement it as its good for short term gains for the people funding their political careers. You do have a point that developing economies have a advantage in they have more upside to gain and this lets countries have those 10%+ per annum growth rates. But also its worth noting, and this may be 'causation does not equal correlation' type scenario, but no country has become developed as we consider it now without having a significant improvement in financial equality. See this graph: https://ourworldindata.org/wp-content/uploads/2013/12/Top-Incomes.png https://ourworldindata.org/wp-content/uploads/2013/12/Top-In... Article here: https://ourworldindata.org/income-inequality https://ourworldindata.org/income-inequality And while its not as simple as one variable, its going to be interesting to see what happens if we continue to allow inequality to grow.
- pimmen 8y ago
  A lot of that growth comes from broadening their customer base outside the Western world (Apple's largest market is China, not the US) and through leverage (the interest rates are near 0%, in Sweden it's even negative, so it's good times to borrow money). And, some sectors are also showing growth because the middle class is becoming more narrow in the West. Budget chains like Wal Mart are going strong and luxury brands too, it's the middle class restaurants and retail stores (Game Stop is a good example of a middle class retailer) that are taking a big pounding right now. So, a lot of growth is just market shifts while the previous caterers to the middle class are leveraging to stay afloat.

by pimmen 8y ago

SolaceQuantum 8y ago

I don’t think we actually have some of those things. See: Flint, MI.

pimmen 8y ago
What happened in Flint was a scandal because that's not supposed to happen in a rich country, that sort of water supply is an eye sore that someone should've done something about years ago. The sentiment that things like these can and should be dealt with swiftly is so engrained in us because of all the benefits we enjoy. Meanwhile, in some places where millions of people live cholera in the main water supply is Tuesday. You can make boatloads of cash if you satisfy that market demand.
megaman22 8y ago
Yes, a horrifically mismanaged city that collapsed into corruption when it's tentpole heavy industry packed up and left makes a great example. That's not necessarily representative of anything, though.

Gustomaximus 8y ago

I feel your on the wrong tack here, shown by looking at company profits which are still growing at healthy rates in the wealthiest nations. https://tradingeconomics.com/united-states/corporate-profits https://tradingeconomics.com/united-states/corporate-profits And I believe, though recognise this has counter arguments, if we kept (or implemented depending on region) better tax redistribution and worker wage support the first world economies would be growing at a better rate. The trickle down policy we see in most western countries has been disproven time and time again yet the politicians still rebrand and implement it as its good for short term gains for the people funding their political careers. You do have a point that developing economies have a advantage in they have more upside to gain and this lets countries have those 10%+ per annum growth rates. But also its worth noting, and this may be 'causation does not equal correlation' type scenario, but no country has become developed as we consider it now without having a significant improvement in financial equality. See this graph: https://ourworldindata.org/wp-content/uploads/2013/12/Top-Incomes.png https://ourworldindata.org/wp-content/uploads/2013/12/Top-In... Article here: https://ourworldindata.org/income-inequality https://ourworldindata.org/income-inequality And while its not as simple as one variable, its going to be interesting to see what happens if we continue to allow inequality to grow.

pimmen 8y ago
A lot of that growth comes from broadening their customer base outside the Western world (Apple's largest market is China, not the US) and through leverage (the interest rates are near 0%, in Sweden it's even negative, so it's good times to borrow money). And, some sectors are also showing growth because the middle class is becoming more narrow in the West. Budget chains like Wal Mart are going strong and luxury brands too, it's the middle class restaurants and retail stores (Game Stop is a good example of a middle class retailer) that are taking a big pounding right now. So, a lot of growth is just market shifts while the previous caterers to the middle class are leveraging to stay afloat.