4% nominal growth (2% real, 2% inflation) leads to a doubling in 20 years
American Economics Thread
- Thread starter Bernard
- Start date
An example of accumulated U.S. firm advantages that provide economies of scale and network effects that in effect, become self-perpetuating across many market segments.
Citibank has a global payments markets infrastructure, to allow for international trade and foreign business transactions, across thousands of foreign banks, and hundreds of currencies - it is thus the go-to bank for any business that needs to move money across borders. Anyone else that attempts to compete would need to convince businesses to move to a network without any scale and would need to convince thousands of banks globally to build an API around them when they already have an API with Citi and they would need to convince investment banks to hedge FX risk with them using futures/forwards/swaps despite lower and less volumes. Citi’s incumbent position allows it to have massive scale (thousands of banks, hundreds of currencies, best in class risk management) and network effects (anyone moving money across borders defaults to Citi; all upstart banks use Citi) and both make it very difficult for anyone else to enter. The US has tens of thousands of firms like Citi - operating in niche but important market segments that all have their own network effects and scale effects -
from network tld registration at VeriSign, operating systems and office productivity software at Microsoft, industrial gas manufacturers such as Praxair and Air Products & Chemicals, gas turbines manufactured for electrical generation from General Electric, credit and debit card transactions through Visa and MasterCard, life and property insurers (larger size means greater solvency and confidence among insureds - leading to more customers - for example, MetLife and Travelers from New York and Chubb from Chicago are just about the only insurers that sell globally), or even package couriers such as UPS and FedEx (who operate globally in a way no other courier does).
Citibank has a global payments markets infrastructure, to allow for international trade and foreign business transactions, across thousands of foreign banks, and hundreds of currencies - it is thus the go-to bank for any business that needs to move money across borders. Anyone else that attempts to compete would need to convince businesses to move to a network without any scale and would need to convince thousands of banks globally to build an API around them when they already have an API with Citi and they would need to convince investment banks to hedge FX risk with them using futures/forwards/swaps despite lower and less volumes. Citi’s incumbent position allows it to have massive scale (thousands of banks, hundreds of currencies, best in class risk management) and network effects (anyone moving money across borders defaults to Citi; all upstart banks use Citi) and both make it very difficult for anyone else to enter. The US has tens of thousands of firms like Citi - operating in niche but important market segments that all have their own network effects and scale effects -
from network tld registration at VeriSign, operating systems and office productivity software at Microsoft, industrial gas manufacturers such as Praxair and Air Products & Chemicals, gas turbines manufactured for electrical generation from General Electric, credit and debit card transactions through Visa and MasterCard, life and property insurers (larger size means greater solvency and confidence among insureds - leading to more customers - for example, MetLife and Travelers from New York and Chubb from Chicago are just about the only insurers that sell globally), or even package couriers such as UPS and FedEx (who operate globally in a way no other courier does).
Substantial evidence of financial efficiency in capital allocation - most AI stocks have fallen in price this year including Salesforce and Adobe. The U.S. financial sector is a perfect market with perfect information and investors are able to allocate scarce capital to the truly productive AI firms and spurn grifters and scammers trying to sell nonsense as “AI”. This will lead to economic growth and technological development for decades as AI becomes developed and deployed across multiple different sectors to support productivity growth; just like the U.S. financial sector flawlessly financed a generation of industrialists in the early 1800s, railroad companies in the late 1800s, mass electrification and the second Industrial Revolution in the early 1900s, infrastructure and urbanization in the mid 1900s, and the broad expansion of IT and software in the late 1900s to the present day.
The Senate passed, on an overwhelmingly bipartisan vote of 88-2, a major overhaul of the U.S. Nuclear Regulatory Commission.
There is substantial political comity and innovative policy coming out of the Congress - but it simply is not ideological or politically salient, and as a result, does not get much media coverage or widespread recognition; but none of that diminishes the substantial policy innovation and bipartisanship that dominates in DC on non-ideological technocratic issues such as nuclear energy
There is substantial political comity and innovative policy coming out of the Congress - but it simply is not ideological or politically salient, and as a result, does not get much media coverage or widespread recognition; but none of that diminishes the substantial policy innovation and bipartisanship that dominates in DC on non-ideological technocratic issues such as nuclear energy
I realize its likely just trolling at this point, but this is getting to the point where its thread pollution. Mods should consider limiting chgough34 to one post a day or something along those lines
PiSigma
"the engineer"
There is the sleepy rule and I'm not sure why it is not being applied. Especially since this guy is clearly sleepy reborn.
FriedRiceNSpice
Captain
We used to have a funny news thread. Don't know what happened to it, but now I'll just come to this thread and read @chgough34's posts as an alternative.