Skip to comments.Is America giving up?: Wharton professor
Posted on 04/17/2014 7:49:29 AM PDT by Red in Blue PA
In real terms, the U.S. economy expanded by a total of $290 billion dollars in 2013. With some minor adjustments, that's essentially the amount of extra income created by the nation as a whole. It also represents the increase in the purchasing power of its residents.
By comparison, China's economy added over $800 billion dollars to its citizens spending power during 2013 alone. That's an extra $800 billion that is now available for Chinese households to purchase new products and services or to save and help fund new ideas and technologies. At this rate, China is expected to overtake the U.S. as the largest marketplace in the world by the end of the decade.
This is not just about statistics. It is about our quality of life and how long we will live. It is about where our children will want to live and who will be our neighbors in the future.
While entrepreneurs in the U.S. are focused on "disrupting" established products and industries, working in China raises no such concerns. With so much extra income being generated every year, there is plenty of space for the new and latest.
With prospects for success - and its sizable rewards - so much greater in China, our ability to attract and retain the best and brightest will be seriously tested. Although Americans may not be moving anytime soon, fewer young and talented Asians are now interested in pursuing their careers in the U.S.
(Excerpt) Read more at finance.yahoo.com ...
where does this particular genius think the best and the brightest are going to head? China?
It might be that producers are giving up. Or it just might be that producers are outnumbered to the tune of 86 million producers versus 143 million users. Take your pick.
In any case, this won’t continue for much longer. At some point, somebody gonna aks “who flyin da plane?”
China grew in nominal dollars almost 3 times as much as we did in 2013.....but they also have 2 times as many people! Amazing that this point was not addressed.
2 times as many people should read almost 3 times as many people. Fat Finger Thursday.
America needs to compete.
Both political parties have sold out to China.
We need American jobs. Hire Americans.
Bring back jobs to America.
China is producing *STUFF*. We are not. We are a serviced-based economy and, eventually, you run out of customers for your coffee shop.
As my husband says, “We’ve become nothing more than a self-licking ice cream cone.”
Chinese government production statistics = world’s best-cooked books.
The Richest Man in Asia is Selling Everything in China
I think we are going to give Barry and his buddies some of their prized unemployment soon.
I’ve given up. The 86/143 number is just part of it. A totally corrupt, unshakably communist media is part of it. And kids 30 and below who just don’t care, and never cared enough that they can give up is the finishing touch.
its pretty simple - here in America, we encourage only some people to be productive. The majority are encouraged by many and various government policies NOT to be productive.
We have given up real labor that ‘creates value’ for the tales of ‘work smarter, not harder’ or ‘Value capture’ and sent kids to institutions of higher learning for useless degrees like ‘Women’s Studies’. They come out thinking they deserve a high paying job. The term ‘Earned Success’ means nothing.
The ‘Have-nots’ will have to become the ‘do somethings’.
OK, but specifically, *what* jobs?
We just cannot compete with China in the cheap labor dept. Our people wouldn’t tolerate that.
We need jobs that make fast, serious money.
How about energy? (I’m talking oil, coal, and natural gas)
We’ve got undeveloped precious metal deposits in the Rockys.
We’ve always led in drug development and medical advancements. Stop subsidizing the overseas socialist programs. (They pay what we pay.)
Sell off ALL of the gov’t land to private investors. (NOT foreign investors) Allow human innovation to thrive.
Reform the tax code to something so simple and fair that we can’t help but thrive. (Herman Cain’s 9-9-9 Plan would do it... without all the subsidies and BS he tried to toss in at the end to get public backing)
Yes. I believe that it really would be that easy to create a massive boom in this country within just one year. Just by passing tax code reform, businesses would be encouraged to expand ASAP. Opening up oil and mining (without the EPA to screw it up) would create great paying jobs within 18 months.
Oh! And get our boys into trade schools. Stop funding kids who don’t have the grades or talent to make it in college. We need plumbers, welders, pipe fitters, electricians, and truck drivers and we should encourage them to do it.
*** China is producing *STUFF*. We are not. We are a serviced-based economy and, eventually, you run out of customers for your coffee shop.
As my husband says, Weve become nothing more than a self-licking ice cream cone. ***
“Alfonso Nunez de Castro in 1675: Let London manufacture those fine fabrics of hers to her heart’s content; let Holland her chambrays; Florence her cloth; the Indies their beaver and vicuna; Milan her brocade, Italy and Flanders their linens...so long as our capital can enjoy them; the only thing it proves is that all nations train their journeymen for Madrid, and that Madrid is the queen of Parliaments, for all the world serves her and she serves nobody. A few years later, the Madrid government was bankrupt. The Spanish nobleman had foolishly elevated consumption, a use for wealth, above production, the creation of wealth.”
I’ll take another turn at the “I told you so” booth. I was here during the “free traitor” wars. I was often invited to go back to the DU when I pointed out that American production moving offshore was a bad thing, and would lead to Americans voting for Marxists.
Unfortunately, my prize for being right is we all lose.
I’m sorry I used to be a “free trader”.
Even worked in China.
I am now a complete turnaround. America needs jobs.
All jobs. Bring jobs back to America.
Use tariffs if needed, but bring them back.
Decades ago Wharton was an excellent school. Now it is just another eastern elite bs pseudo university.
The article below tells us what is really happening in China. The author of this bs should fly to China and stay.
The richest man in Asia is selling everything in China
The Sovereign Man ^ | 04/17/2014 | Simon Black
Posted on SeekAndFind
Heres a guy you want to bet on Li Ka-Shing.
Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor.
Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it.
Since August of last year, hes dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing this deal was inked just days ago.
Once the deal concludes, Li will no longer have any major property investments in mainland China.
This isnt a person who became wealthy by being flippant and scared. So what does he see that nobody else seems to be paying much attention to?
Simple. Chinas credit crunch.
After years of unprecedented monetary expansion that has put the economy in a precarious state, the Chinese government has been desperately trying to reign in credit growth.
The shadow banking system alone is now worth 84% of GDP according to an estimate by JP Morgan. The IMF pegs total private credit at 230% of GDP, jumping by 100% in the last few years.
Historically, growth rates of these proportions have nearly always been followed by severe financial crises. And Chinese leaders are doing their best to engineer a soft landing.
If theyre successful, the world will only see major drops in global growth, stocks, property, and commodity prices.
If they fail, the spillover could become pandemic.
This isnt important just for Asian property tycoons like Li Ka-Shing. Even if you dont know Guangzhou from Hangzhou from Quanzhou, there are implications for the entire world.
Here in Chile is a great example.
Chile is among the top copper producers worldwide, China among its top consumers. With a major slowdown in China, however, copper prices have dropped considerably.
Consequently, the Chilean economy has slowed. The peso is down nearly 10% against the US dollar in recent months, and the central bank is slashing rates trying to prop up growth.
There are similar situations playing out across the globe.
Not to mention, China could put the entire global financial system on its back just by dumping a portion of its Treasuries in order to defend the yuan.
Now, youd think that a major credit crunch with far-reaching consequences in the worlds second largest economy, its largest manufacturer, and its largest holder of US dollar reserves, would be constant front-page news.
But its not.
Most traditional investors are unaware that whats happening in China will likely have far greater implications to their investment portfolios than the policies of Janet Yellen and Barack Obama combined. At least for now.
And folks who dont see this coming and keep buying at the all-time high may see their portfolios turned upside down. Quickly.
At the same time, some investors who are conservative and cashed up may realize a real blood in the streets moment.
Again, using Chile as an example, Im starting to see over-leveraged property owners coming to the market in droves ready to make a deal. This is great news because my shareholders and I are able to buy far more property with US dollars than we could even just six months ago.
I expect this trend to hold given that China is just at the beginning of its process.
Its said that the Chinese word for crisis is a combination of danger and opportunity.
This isnt entirely accurate. Weiji can have several meanings, but is probably best translated as dangerous and crucial point.
We may certainly be at that crucial point, and now might be a good time to take another look at your finances and consider selling before a major crash. The richest man in Asia certainly thinks so.
— Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man.
By comparison, China’s economy added over $800 billion dollars to its citizens spending power during 2013 alone.
Not that I believe any of those numbers...
A lot of those people are too lazy to vote.
those numbers were a tad off.
if there are only 86m producers... in a country of 330m...
then there are 244m million looters
65% of the population or 2 out of 3
Wealth is evil.
There’s nothing wrong with living off of the State.
Work is for suckers.
Meanwhile in your neighborhood stores:
Imports from China 2013: 440 Billion dollars.
Exports to China in 2013: 122 Billion dollars.
That is a trade deficit of 318 Billion dollars or so, just last year.
That is GROWING.
Every single year.
America is heading 100% the wrong direction.
Bring back American manufacturing. Now.
It is also getting much easier to steal elections.
Either way, the world's primary economic theater has already shifted to Asia and it will not return. We can become strong again, but we'll never be the post-WWII titan we once were.
I know you’re not talking about ice cream. But last night I was near one of my favorite ice cream stores which my grandson and I used to frequent at least once a week. Was going to treat myself to one small dip in a cup - $4.89 plus tax. Said thanks but no thanks. Maybe just one of the reasons I was the only person who was in the store.
No you are off. They weren’t % of total population. They were actual numbers of taxpaying workers against entitlement receivers. Article thread here yesterday on it v
4 times as many ppl...1.2 billion to 300 million
We can easily turn this around if people will reject the Democratic party and reject our intellectual elite.
The easy start is as you note: Energy.
More coal exports, natural gas and oil extraction will produce jobs as they have in North Dakota and Texas. We must stop anti-capitalism in the faux form of environmentalism. The public needs to understand that American environmental movements increase pollution. The bans on fossil fuels move the production to Canada, Mexico, Venezuela, China and Nigeria. The bans have no positive environmental effect— they actually make it worse globally.
That starting point leads to the unthinkable— the return of manufacturing to the Unites States. Energy is potentially so cheap in the US that manufacturing can do better here than in China and Europe.
Lowering corporate tax rates is the easy windfall. America has the highest corporate tax rates in the world. It is amazing we have as large of an economy as we do given the explicitly destructive policies we maintain against business. If tax rates moved GDP growth from 2.2 to 3.5 or even 4.0 then the net effect would be massive increases in government revenue. Lower tax rates would increase revenue as they have in almost every case.
America also has exciting features that China lacks:
1. Americans steal far less intellectual property than China does. China steals literally billions of dollars in intellectual property every year. Businesses are getting fed up with that. Intellectual property can be defended in the US court system. No such thin is possible in china. Business in China is largely organized systems of theft orchestrated by the communist party there.
2. America has breathable air. Sadly, one third of our western air pollution now comes from China but it is vastly diluted compared to the unbreathable air of major chinese cities. Though the UN assures us that China has the best government for fixing environmental problems— it is an unmitigated disaster.
3. We have a sustainable human population. China killed too many of its own people and too many babies. The aging population makes life in China social impossible. There are not enough young people to care for the rapidly tipping society of aging.
All of these factors tip in America’s favor and against alternatives such as Germany, Japan, France, and Russia, None of them can match our energy position.
It will be an American century. We just need to dump the democrats in the senate and the white house.
1) Eliminate taxes on all profits realized on products produced in the United States.
2) Levy a 30% across the board tariff on all imports. No exceptions.
3) Shut down the EPA and return to reasonable emissions and land use standards. Unfortunately the business leaders have proven they can’t self regulate with respect to pollution so to protect the water and air it will be necessary to have some regulation.
4) Close the border. Eliminate “amnesty” immigration. Allow only immigration of people with education and skills.
5) Drill for hydrocarbons on both private and public lands.
6) Break up the “too big to fail banks” and the Federal Reserve. Return to a monetary system backed by gold.
7) Simplify the income tax. Eliminate the earned income credit. Establish a 5% rate for even the lowest earners - all citizens must pay into the system. Establish 10%, 20%, and 30% brackets. No one should pay more than 30%. No deductions and no credits.
8) Cut federal bureaucracy across the board by 20%. Eliminate outdated agencies - Dept of Labor, Dept of Commerce, Dept of Education, Dept of Agriculture, HUD, much of HHS.
9) Institute a draft. All 18 year olds (male and female) must give two years of military service or service on public works projects (i.e. CCC type work).
10) Reinstitute the “work” requirement for welfare the Obama administration dropped.
11) End Obamacare. Reform medical insurance by permitting national competition for insurance. Establish state high risk pools for people with preexisting conditions if the industry does not provide an option. Deny treatment to all persons in the country illegally.
12) Constitutional amendment to require budget surplus each year with national debt to be paid off in 25 years. Congress must either reduce spending or raise taxes to balance the budget.
13) Sell off federal lands to pay down national debt.
14) Bring all US troops stationed abroad home to protect the borders of the US. Let the rest of the world pay for its own defense and take care of its own problems. Keep a strong navy. Build a missile defense system for the homeland.
15) Reform legal system. Go to “loser pays” in tort litigation. Reinstate “speedy” trials. Establish streamlined appeals system. All criminals should have the benefit of a trial as well as all appeals within one year of being charged. Judges who do not uphold the Constitution should be impeached and removed by Congress.
Booming economy as manufacturing returns to the homeland bringing jobs and an economic boom.
Rest of the world respects us but does not hate us for constant meddling.
Chinese economy and ability to fund its military buildup is crippled.
Europe, Japan, and Korea have to fund their own defense instead of getting a free ride on the US taxpayer.
Agreed. It is always darkest before the dawn.
If we elect intelligent leaders and tackle our debt/borders, we could turn it around really fast.
BTW the majority of the past two or three generations have been totally 100% brainwashed by leftist/Communist in government run schools and academia...
Add in millions of third world foreigners and illegals imported into our land...Real freedom loving Americans are the minority now and will struggle as things will get even uglier...
“Carter was dumped so I expect barry to fall farther faster.”
A very different country dumped Carter; those Americans had too few children. I was optimistic until the 2012 election; only then were the results obvious to all.
“A lot of those people are too lazy to vote.”
Buying the election of 2012 with welfare and food stamps has added a large number of permanent Democrats who are very motivated to keep the freebies coming. As long as they can be convinced that the freebies are in danger, they will vote. They did in 2012...