Why is America so prosperous when . . . ?

[JohnT]

Originally posted by Mr. Nice Guy
America? Prosperous?

No offense to my fellow Americans, but enjoy it while it lasts. The EU is going to become the next superpower. This is not to say that I like what's going to happen, but it WILL happen. Someday very soon, America will "fall" underneath the shadow of the EU. You can count on it.

Even if that is true, it doesn't necessarily follow that America will become less prosperous (other than relatively, of course).

[Ogie Oglethorpe]

Kids point about maturing capitalist societies actually has some merit.

If one look sat a microscopic view as opposed to a macrosocopic view, small entrepenurial companies are those that show the most growth potnetial and are indeed the reasons why capitlism succeeds so well. For this reason, we must be constantly wary of any governmental policies that damage the growth of small businesses as these are a large component of the growth engine as opposed to the larger monolithic corporations.

Hence my rationale that governmental regulations be they safety, environmental, labor etc. are most damaging to the small corporations (growth area) while least impacting the larger corporations (excepting that once the business environment becomes so hostile they end up outsourcing as they are more poised to do so).

[Kidlicious]

Originally posted by Ogie Oglethorpe
Kids point about maturing capitalist societies actually has some merit.

If one look sat a microscopic view as opposed to a macrosocopic view, small entrepenurial companies are those that show the most growth potnetial and are indeed the reasons why capitlism succeeds so well. For this reason, we must be constantly wary of any governmental policies that damage the growth of small businesses as these are a large component of the growth engine as opposed to the larger monolithic corporations.

Hence my rationale that governmental regulations be they safety, environmental, labor etc. are most damaging to the small corporations (growth area) while least impacting the larger corporations (excepting that once the business environment becomes so hostile they end up outsourcing as they are more poised to do so).

I say the slow down in growth creation is due to the maturing of the economy, not the lack of dynamics in the economy. Productivity in new industries isn't higher. In fact it's lower. Productivity growth usually slows regardless of how dynamic an economy is. There are exceptions, but in the long run it's true.

[Ogie Oglethorpe]

Originally posted by Kidicious


I say the slow down in growth creation is due to the maturing of the economy, not the lack of dynamics in the economy. Productivity in new industries isn't higher. In fact it's lower. Productivity growth usually slows regardless of how dynamic an economy is. There are exceptions, but in the long run it's true.

Your point was the macroscopic. Mine was of the micro. Your point regarding productivity of small businesses verses large businesses is generally correct. One would expect that small companies are inherently less productive than large companies. As a conseqeunce they also have the most to gain and/or lose by changes to their productivty. I would argue they are much more susceptible to these then say large companies.

This being said as they grow the producivity will continue to increase until such time as they approach productivity levels of typical large corps. While going through that transition tho' they are providing jobs at a higher rate than the comparable large companies and while going through that tranistion have the more likelihood for growth than comparable established companies (assuming they pull off the cost reductions/unit or service produced that fuel market growth).

It's been pretty much a standard that the smaller companies have the higher risk but also greater return in terms of growth over the long haul.

It would be an interesting statisitc to see the proportion of GDP provided by large cap vs. small cap and individual business owners and how this translates into growth. Additionally the change in proportions over time.

[The Mad Viking]

All the growth comes from small cap. Large cap has negative domestic growth, with downsizing & international outsourcing.

*

Che - America is so prosperous because she is rich. How much work does a billionaire have to do if he invests his assets wisely?

[Q Classic]

kinda funny how america in some areas looks like such crap, particularly when we work more on average than even the e asians.

[JimmyCracksCorn]

Re: Why is America so prosperous when . . . ?

Originally posted by chegitz guevara
We do such half-assed jobs on everything. Everyplace I turn around I see slipshod work, uncaring employees, half assed jobs. We put massive effort into getting stuff done before its ready, rush, rush, rush, then drop the project and run on to something new.

How did we build an empire this way?

Haha, its funny you say that. You've obviously never lived outside the US.

Customer service, in general, in the US, is SUPERB. At least compared to Canada and the many other countries I've been to. Complain all you want, but rest assured that whatever you think sucks is 100% better than anywhere else.

Try going even to a Mcdonalds in another country, and you'll be there forever waiting just for your ****ing big mac.

[Nubclear]

I live in the Mormon Republic of Utah

[LiberalAtheist]

Originally posted by Kidicious


True, but wealth creation in a capatalist nation decreases with time. GB, the first nation to industrialize under capitalism and dominate the world economy, was once the wealthiest nation on earth, but with success came maturity and wealth creation slowed. The same thing is happening in the US, and within the next century probably some other nation will create more wealth.

Your example with GB is true, but that may not be that it's wealth declined so much as it is that it declined compared to other nations, who after a certain point could compete at an industrial level. Also there is the devestating effect of ww2.

Last, Britain did turn far less capitalistic after ww2, with the rise of the labor party, which imo made it less productive but more prosperous.

[JimmyCracksCorn]

Originally posted by Mr. Nice Guy
America? Prosperous?

No offense to my fellow Americans, but enjoy it while it lasts. The EU is going to become the next superpower. This is not to say that I like what's going to happen, but it WILL happen. Someday very soon, America will "fall" underneath the shadow of the EU. You can count on it.

The US's percentage of the worlds GDP is increasing, while Europe's percentage is decreasing (sorry, no source, but everyone knows this).

On top of that, the EU's 400 million people have a combined GDP which is less than the US's 300 million people. Unless the EU really gets its ass in gear, the US will consistently outperform it, and I don't see anything changing that. Plus, the high Euro isn't exactly helping them either.

http://www.eia.doe.gov/emeu/cabs/euro.html

P.S. If you want to see why the US economy consistently outperforms other countries (like Canada, EU, etc...) go to a McDonalds in the US then go to a McDonalds in Canada or somewhere else. You'll see the difference.

American fast food places work like machines!

[chequita guevara]

CBEAST!

[JimmyCracksCorn]

Originally posted by LiberalAtheist


Your example with GB is true, but that may not be that it's wealth declined so much as it is that it declined compared to other nations, who after a certain point could compete at an industrial level. Also there is the devestating effect of ww2.

Last, Britain did turn far less capitalistic after ww2, with the rise of the labor party, which imo made it less productive but more prosperous.

Not to mention GB lost alot of its colonial wealth and holdings after WW2 as well... GB came out of that war a significantly smaller country, even if it did give up its empire mostly willingly.

[LiberalAtheist]

Originally posted by JimmyCracksCorn


The US's percentage of the worlds GDP is increasing, while Europe's percentage is decreasing (sorry, no source, but everyone knows this).

Sadly Jimmy, I don't know this, so I would need a source before I believed it.

[JimmyCracksCorn]

Originally posted by LiberalAtheist



Sadly Jimmy, I don't know this, so I would need a source before I believed it.

I'll shed a tear for you.

Edit:

Think about it though, the US accounts for 20% of the worlds GDP, while the EU is around 14%.

http://people.hofstra.edu/geotrans/eng/ch2en/conc2en/gdpgrowthregions.html

The US GDP grew by about 4.1% in 2003, while the EU's grew by less than 1%. So it would only make sense that the US's share in global GDP is rising, while the EU's relative share is declining, or at least declining in relation to the US's.

http://www.scb.se/templates/tableOrChart____32279.asp

[GhengisFarb™]

Originally posted by MrFun
The reason America seems to be so prosperous is because commies have not taken this country over.

Yeah that would shoot our prosperity down the toilet. We'd be down and the welfare end of the prosperity list.