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There are different ways of measuring how large an economy is. How much of the US economy is Wall Street and real estate? Does that really deserve to be 'GDP'
by Theodores 7y ago
There are different ways of measuring how large an economy is.
How much of the US economy is Wall Street and real estate? Does that really deserve to be 'GDP' as nothing is actually made?
Some say that a large finance sector and a rentier class is a burden to the main economy. It is hard to deny even if there is the 'trickledown' effect from the 1%.
What about militarism?
The trillions spent on war is supposed to be good for the economy but I don't see it myself. If all those bullets had been batteries for electric cars then the USA could have sold those electric cars to places like Libya, Iraq and elsewhere blown off the map or crippled with sanctions.
In China, regardless of whether they have stolen IP or not, they do actually make stuff. Making stuff definitely counts as GDP. Chinese folk are industrious and 'lazy' is not a word uttered in the context of China, even by the haters. I don't get the feeling that the Chinese economy has developed to the late capitalist stage where everyone who works is paying off rentseekers, monopolists and usurers. For this reason I think the Chinese economy is a lot stronger than the American one even if the GDP metric would lead one to believe otherwise.
I also think China are leapfrogging the USA when it comes to education. STEM subjects rule in China, they don't in the USA. When it comes to the fundamentals China is on to something. I am not sure USA Inc has a plan for the future.
- coliveira 7y agoExactly. The main point is that the groups that control the US have steered the country towards doing things that are great for the elites but terrible for the population. Banking is excellent for the wealthy portion of the country, but works as a drag on the population elsewhere because banks live off interest and fees, i.e., they subtract from the real economy. Healthcare is now a big portion of the US economy, but it is in fact another big drag on the living standards of its population. Real estate is the sister industry of banking, and as real estate costs escalate this means a reduction of wealth from poorer people to the wealthy and the banks.