American Economics Thread
- Thread starter Bernard
- Start date
In my opinion, there are currently two things keeping the American economy afloat:
- The AI bubble, driven by Nvidia and TSMC.
- Biden's massive, yet currently unprofitable, public investments.
The rest is just smoke and mirrors to keep a crumbling structure standing. If BYD were an American company, it would now have a market valuation of around $4,000-5,000 billion, given that in just a few years it went from 0 to 5 million cars produced, including 2 million electric vehicles. Just compare that to Tesla.
That is the only way they can pretend to have a larger economy when China buys and uses up twice or more of everything. And whose demand has been growing exponentially faster than the US for decades.
China still profits from the trade. Millions of average Chinese would be affected more or less if the trade is cut off completely.
in my opinion american will suffer most, with key parts of their economy collapsing
The world is not zero-sum, despite all the attempts of the US to portray it that way.
Well, it's not untrue that US has less bureaucratic red tape than EU. Or that it's better at innovation. But EU isn't the one US needs to step up to compete with.
Geographic vastness, self sufficiency and decentralized institutions (in the sense that the administor does not interfere with the specialist) is also defining strengths of China, even more so than they are for US.
Yet enforcing a contract or creating a business in China is in turn at least also twice as efficient than in America.
The bottom line is that US won't get China off the top economy throne without breaking the virtuous cycle that is:
-> top tier research institutes -> top tier logistics/industry tech -> fed globally by nearly limitless resources -> top industry experience allows for (back to arrow 1)
To break it, America needs to be better than China at subsidising living standards in the West, the East and the global south.