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>I believe USA has more money than the broke USSR did Note that this doesn't really matter. It especially didn't matter back then in a less globalized economy.
by chmod775 6y ago
>I believe USA has more money than the broke USSR did
Note that this doesn't really matter. It especially didn't matter back then in a less globalized economy. The USSR being poor doesn't change anything about their domestic labor pool, which is what is relevant for construction work. The laborers simply charge less.
This is same fallacy that leads people to believe we'd magically have more of everything if money hoarded by rich people was distributed across the populace. At best stuff will be distributed better. But bakers won't start baking more bread, nor will car manufacturers be able to start making more cars. Assuming unemployment stays the same, the economic output of goods won't change.
Money doesn't produce anything, people do. Money is a tool to guide labor in the right direction and distribute goods.
Which means that in order to build more, the USA would either need more construction workers or become more efficient at constructing stuff. The first can be achieved by diverting money and making the job more attractive, the second by creating a competitive environment.
- baybal2 6y agoWhat else do you propose American workers to produce? More cat video websites? I simply don't see anything much profitable left for USA to produce. No more expensive stuff left to make.
- chmod775 6y agoYou probably wrote this before I added the last paragraph to my comment.
- imtringued 6y ago>The first can be achieved by diverting money and making the job more attractive You mean... like the central bank dropping interest rates to an all time low? The low CPI inflation also suggests an underutilized labor force.