Skip to comments.Dollar rules the world
Posted on 07/27/2006 8:01:39 AM PDT by Marius3188
DESPITE some apprehensions about the erosion of mighty dollar and high oil prices, United States continues to be the world's richest country. The reigning superpower tops a new list of the wealthiest nations issued by the World Bank on the basis of the GDP and spending by consumers.
And why not? This is the prize you get rewarded for running the world's most successful economic system based on capitalism. Whether it's a liberal republic or parliamentary democracy, they succeed and prosper because they share a capitalist vision.
America has had a solid and stable system of governance that has not been interrupted for the past couple of centuries. And it is ruled by a clear economic vision backed by market reforms.
As a result, America, the world's most powerful nation, is also its richest and economically most powerful with a GDP of $12.46 trillion. It is home to eight million people who are richest in the world, almost equal to the population of many countries in Europe. The World Bank list only reflects the economic and institutional strength of the country that is rightly the leader of the industrialised nations and free market forces.
To top it all, there is democracy, political freedom, free and outspoken media and the freedom of expression, which are seen as a blessing by the leaders and government officials.
Be it private or public enterprise, everyone recognises and acknowledges the role played by free media and its responsibility towards society. They know that the media has to report and tell the truth as it is.
Despite being a capitalist society where big companies and corporates do have vested interests, no eyebrows are raised when the media responds to consumer concerns and steps in to protect customer interests. For instance, the media has to report when any project is badly executed, and not in accordance with the agreement or contract. Or when companies cut corners to make an extra buck and its reported by media, it is taken as constructive criticism, without attributing motives to the media.
On the contrary, if we in the media do not do our job of reporting these things, we wouldn't be doing justice to our readers or consumers. The medias role could prove critically important in such cases. For instance, in many countries that were recently hit by earthquakes, housing infrastructure was not built according to safety specifications. As a result, thousands of people died in addition to the overall devastation of the infrastructure.
Dear readers, you wouldn't expect this to happen in capitalist America where everything is built on a solid foundation, whether it is apartments or shopping malls or other infrastructure. And companies are accountable to their consumers, be they in the business of housing, cars, planes, steel, cement or food. It is not as if these companies are not conscious of their image or importance of presenting a better picture before their customers. But they understand the accountability factor and that if you do not deliver, you have got to pay for it.
This is the key to America's success as a nation and as an economy. And this is precisely why US dollar, despite recent setbacks, continues to be the world's favourite and most dependable currency. In fact, the mighty dollar's sway over global markets and its role as the currency of international trade is a tribute to America's unique place in world affairs. Moreover, if other countries are progressing economically, they are doing so by following in the footsteps of the world leader.
America and Capitalism bump.
Bush's fault. WGIDS.
..its reported by media, it is taken as constructive criticism, without attributing motives to the media. ,
Well, he might have a grasp on some of the politics and economics, but he's got a few things to learn about our media.
Khaleej Times is the No.1 English language daily newspaper published from Dubai, United Arab Emirates.
He may have the mainstream media wrong--but with the dawn of the internet and talk radio, the MSM has also been exposed!
Nice to see somebody gets it. One would never see something like this in one of our pretend newspapers like the NYTimes.
It's kind of funny to hear these generalities. In fact the backbone of the economy is the corporation, and the corporation is like a smaller socialist state within the state. The corporation might be acting in a limited capitalist way externally, but internally it definitely is not. When the CEO pulls several $million in this and that compensation, how the capitalists shriek. When Exxon makes $10 billion in a quarter how the capitalists shriek. There might be capitalism, but there is a lot more socialism inside it and around it.
It is our system of government and the encouragement of captialism that makes the economy work.
Having a non-socialist government reduces taxes (There are some who will argue we are becoming socialist...for the purposes of argument I make the point)
Lower taxes means more capitalistic activity
More Capitalistic activity means more jobs
More jobs means more tax income for the government
How easy is this to understand? Liberals just don't get it, though.
RightWhale, I am not sure what you mean.
Do you mean that within a corporation, it is more socialist than capitalist? If so, I might agree, and I do not see anything wrong with that. One could effectively argue that a corporation that is capitalist to the core (down to the employees within the company being encouraged to make as much money as they can within their department, and being allowed to keep more of it) would be a real kick-ass company.
The problem (as I see it) is that model it is neither efficient, predictable or scalable downwards to that level.
I may be a real go-getter with lots of ideas and an eye towards making as much money as I can, but most people are not that way. Effective capitalists must be driven and creative (not to mention a little cut-throat) and I don't think most people work that well in that mode.
The fact that the inside of a corporation is highly structured, segmented and planned works on a small scale.
It is also why companies get more inefficient, in general, as they get bigger.
It is also why people who advocate socialism tout books like "Walden II", which is fun fantasy (if that is what turns you on..:) but they fail to realize it is a little tiny community whose achievements would not translate to a large organization.
Of course, there are some that would argue that companies operate like tyrannical dictatorships internally, and I might also agree with that on certain points.
Yes, they are, below the executive staff. This condition is no more than mandated by the state. Outside, in the world, the state provides a functional capitalist environment within the geographical territory and increasingly internationally with GATT, NAFTA, etc., with rights of persons, property rights of the corporation, but internally both the unions and the Human Resource Dept implement highly controlled and uniform personnel practices and control departmental decisions in a highly socialist manner. This is they way the FedGov has retained control over an entity (the country) that has grown vastly beyond any entity ever envisioned or that has ever existed on earth. They say America has moved toward socialism considerably, but the question is how and where, since we see mainly libertarianism and anarchy outside the government institutions. Corporations are the biggest government institution, and there plus other government agencies is where socialism is implemented.
and despite the best efforts of local leftists and global shakedown artists...
Hold on to your wallets, sports fans. They've just repainted the bullseye on us.
The mere fact that it's counterfitted will tell you about the dollar's power.
Say it loudly and Proudly.
It is true that the condition IS mandated by the state.
On the other hand, successful corporations have found that treating your employees well is a net plus for the company.
I work in healthcare, and in a free market (for qualified heathcare providers such as techs, nurses, etc) is so tight that it is a "buyers market"...They have to treat people better both in benefits and pay, or you go under. There is a valid reason union memberships have been dropping.
Of course, if the pure capitalists were allowed to collaborate on these things, that would probably change!
With the price of oil lately, the world needs a LOT of dollars.
So borrow and spend as much as you can on real estate, because the govt inflates away your debt, and even subsidizes it via the mortgage interest deduction.
The transition from the old employer/employee system of capitalism is giving way to the new mandated socialism. Still have some of the old personal things in the system. Remember what they did to Henry Ford when he raised the wages so the employees could afford a Ford?
I dunno, never been a fan of the Fed. Who controls the money, controls US.
Um...why did the feds stop publishing the M3 numbers?
Thats something you will have to talk to Ben about. Do you think that the Fed is running a Ponzi scheme?
They invented it, it was only licensed to Ponzi.
Don't know what they're running, but for a nation to stop informing the public of something as basic as "the amount of cash out there" is very suspicious.
(Don't care if "the fed" is technically a private bank - it defines & controls the currency for the nation, so some factoids dang well better be public.)
Somehow I don't expect Ben will talk to me about it.
As far as I know, the Fed is still publishing M0, M1 & M2 numbers. Perhaps they now consider M3 meaningless or inestimable.
Still, the US Fed publishes more measures than the UK, who only posts two figures.
1 Norway 48,412
2 Iceland 36,377
3 Australia 26,275
4 Luxembourg 59,143
5 Canada 27,079
6 Sweden 33,676
7 Switzerland 43,553
8 Ireland 38,487
9 Belgium 29,096
10 United States 37,648
GDP per capita overview.