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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: skinowski who wrote (88285)11/1/2007 12:19:50 PM
From: KyrosL  Read Replies (2) of 110194
 
<Globalization means equalization of living standards among participants>

That's not necessarily true. Living standards depend heavily on intellectual capital, such as civic institutions and attitudes, the rule of law, etc.; this is by far THE most important determinant of economic prosperity. Another determinant is agricultural and other natural resources per capita. Finally, there is investment in infrastructure both physical and educational.

Countries can develop intellectual capital that facilitates economic growth, but it usually takes generations to change cultural attitudes that impede growth. The US is very well endowed in this area.

There is no way countries can make up for inadequate physical resources per capita. The US has overwhelming advantages in this area compared to most countries.

Finally, there are infrastructure investments, which are by far the easiest to implement. Here the US has a very good basis, though it needs repair and maintenance. Some areas , like secondary education, also need work.

One thing to keep in mind is that the kind of manufacturing jobs the US has lost can be reclaimed in a virtual blink of an eye, exactly because the US already has the other elements in abundance, if we determine that it is to our advantage to do so. Witness post-war Germany and Japan. They were bombed back to the stone age and were back on their feet within a generation, based only on their intellectual capital.
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