4 ms·
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://tradingecon
by 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 agoA 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.