Lmao they are going the Soviet Union route, aren't they?
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American Economics Thread
- Thread starter Bernard
- Start date
No. Defense spending is below 4% of US GDP. Eminently sustainableLmao they are going the Soviet Union route, aren't they?
Yep, second-generation Hispanics in the United States do just as well as whites born in the United States. Immigration is a strength of the United States as it brain drains foreign countries to the benefit of the United States and substantially improves US demographic structureI see it being unlikely for the US to become similar to Latin America in the foreseeable future. America along with other Anglo and Northern European nations has a more productive culture compared to Latin countries.
Indeed. However racial tensions are getting worse. Trump was also a response to that.Yep, second-generation Hispanics in the United States do just as well as whites born in the United States. Immigration is a strength of the United States as it brain drains foreign countries to the benefit of the United States and substantially improves US demographic structure
Who knows what will happen to the 2022 and 2024 elections? Economic growth yes, politics though?
The US had it's highest period of growth during slavery.Indeed. However racial tensions are getting worse. Trump was also a response to that.
They don't matter for macroWho knows what will happen to the 2022 and 2024 elections? Economic growth yes, politics though?
It doesn't matter whether the world continues to fund them are not. The Americans are going down for the count.It'll only crash when the world stops funding them. I still think they have a few years before that happens. There may be stock market corrections and large slowdown in growth but I wouldn't call that a crash.
Could be a decade or more until they crash to Latin American levels.
The dollar as the world's reserve currency has allowed America to continue its shell game for much longer than I thought was possible.
However the dollar as the world's reserve currency does not prevent the negative effects of their bad monetary and economic policies from hurting their economy and society.
1. The currency is losing value ie losing purchasing power due to inflation. This will become a ever more serious problem going forward.
2. It also doesn't prevent other ill effects like unsustainable debts, unsustainable asset bubble's, growing inequality, growing corruption and moral hazard, hollowing out of industry and the real economy causing widespread discontent amongst the populists.
All of these things are already happening in the US right now and will continue to get worse in the future. The US is likely to head into a period of stagflation which combines low growth with high inflation. So the US will look more like Latin America sooner than you think.
And there is no way out for them. Because if they tighten monetary policy to fight inflation it will crash asset prices and create a debt servicing problem causing a economic depression. And if they don't fight inflation and allow interest rate to remain low to protect asset prices they will face worsening stagflation that will eventually lead to a currency crisis causing a economic depression.
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You sound alot like SleepyStudent.The US had it's highest period of growth during slavery.
They don't matter for macro
High inequality mitigates the impact of inflation because poor people are a small impact on their environment.It doesn't matter whether the world continues to fund them are not. The Americans are going down for the count.
The dollar as the world's reserve currency has allowed America to continue its shell game for much longer than I thought was possible.
However the dollar as the world's reserve currency does not prevent the negative effects of their bad monetary and economic policies from hurting their economy and society.
1. The currency is losing value ie losing purchasing power due to inflation. This will become a ever more serious problem going forward.
Debt is sustainable, asset returns aren't correlated with growth, and US manufacturing and labor markets are booming2. It also doesn't prevent other ill effects like unsustainable debts, unsustainable asset bubble's, growing inequality, growing corruption and moral hazard, hollowing out of industry and the real economy causing widespread discontent amongst the populists.
NopeAll of these things are already happening in the US right now and will continue to get worse in the future. The US is likely to head into a period of stagflation which combines low growth with high inflation. So the US will look more like Latin America sooner than you think.
The US is fine and will get 2% growth a year for decades.And there is no way out for them. Because if they tighten monetary policy to fight inflation it will crash asset prices and create a debt servicing problem causing a economic depression. And if they don't fight inflation and allow interest rate to remain low to protect asset prices they will face worsening stagflation that will eventually lead to a currency crisis causing a economic depression.
Also you are forgetting US magic weapons: immigration, money printing and sanctions
Inflation is now so bad that even the mainstream media in the US can't no longer ignore it.High inequality mitigates the impact of inflation because poor people are a small impact on their environment.
Debt is sustainable, asset returns aren't correlated with growth, and US manufacturing and labor markets are booming
Nope
The US is fine and will get 2% growth a year for decades.
Also you are forgetting US magic weapons: immigration, money printing and sanctions
With more than 300000 people every week filing for first time unemployment the jobs market is hardly booming.
US industry, products and economy is losing competitiveness. Just look at the growing trade deficit. It simply shows you fewer people inside and outside of the US wants to buy made in America products.