| | | There are no Rich countries or Poor countries. The so-called rich countries are in fact—indebted countries. Americans household debt rose by $109 billion (0.62%) to $17.80 trillion in Q2 2024. The increase in debt this quarter was largely driven by credit card, mortgage, and auto loan balances
Take another highly indebted country like Norway. People there are spending like there is no tomorrow due to a psychological factor.
The Norwegian government created a Sovereign Wealth Fund with the proceeds of Oil & Gas exports, Norwegian consumers are today, the highest debt to GDP in the world. Why?
The size of the oil fund gave the Norwegian consumer a feeling the fund is a giant safety net. The oil fund is approximately 1.4 trillion dollars while Norway's GDP is $580 Billion. They think whatever the outcome the fund bail them out.
You are an African, South East Asian, or Latin American and you feel yourself poor. Think again. By lacking debt an increase in interest rates or a recession will not destroy your personal economy.
Besides, any increase in income will make you consume and contribute to GDP. Take the poor people who work abroad, their incomes increase, and transfer that money back to their countries. That money contributes to GDP of their countries of origin.
Always remember. You are not poor. You are just not indebted.
People who study macroeconomics, are not interested in poor countries. Macroeconomics does not contribute to explain how it works at poor countries level.
When I was 14, I got money to go to the movies. Instead of a chocolate bar, I bought the conservative Newspaper O Estado de Sao Paulo and opened it right in the Economy Section.
I used to visit countries and people thought I was trying to migrate, Because I was interested in the country's economy. I still do. After landing, the first thing I do is look at the cityscape to see how many cranes are there to see.
Actually, I prefer higher floors of hotels to see the number of cranes there, for many cranes in the cityscape means the economy is growing.
Do the same now in the city where you are living |
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