Should the USA Shut Off to Save Its Economy?

[@EconomicsExplained]

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[@roshankhadka3208]

Do nepal

[@_Ben___]

Do georgism

[@joshnabours9102]

Theoretically wouldn't it be possible to have the same effect as shutting down the borders entirely by changing us zoning laws to 1800's style neighborhoods and away from the "strong town" style of urban planning? Theoretically it would give many types of small businesses a competitive advantage by making them a 5 minute walk away. Then local manufacturing subsidies could provide a competitive advantage for local manufacturers. Perhaps a manufacturing line worker payroll cost subsidy to make good paying manufacturing jobs a thing again?

[@TheRezro]

Wait what? From when PPP is correct way to count economic capability? That claim is pushed by some weird people claiming that gold standard is still a thing. While it can be useful in some circumstances, there are factors what make them unreliable. Like government subsidies, what artificially decease costs of products. Also "law of one price" is quite shaky as it ignore that different cultures actually has different demands and also selection of basket is bit arbitrary. Anyway, PPP by own concept is highly unreliable. If anything most people would use "GDP per capita" because while it also has flaws (resource economies are less dependent on the workers who actually get less from total budget), it at least show economic capability to country potential. So while India is 6'th largest economy, with absurd population of 1.3 bilion people, they economic capability is actually extremely poor with most people living in poverty. While most developed countries have relatively low population to total GDP, to point that demographic decline actually have impact on the productivity. Currently largest problem of Western societies. China is closer in structure to India with 1.4 bilion people they have still smaller economy then US, who has only 1.6 milion. But despite some weird predictions China actually already reach development wall, where educated people start expecting higher prices and population start declining. So no, China would not overrun US. And I would not even mention Russia who in 60% is resource economy, what can be ignored same as domestic military production. In reality real economy of Russia is the same as in Poland. Except with higher infrastructure costs due to large size and cold climate. And actually three time larger population. So average Russian actually produce three time less then average Pole. Even if GDP per capita is similar and that is still more reliable that PPP? In fact countries with primitive economies tend to have higher PPP because economy focus on basic products. After all price of quality bread may rise when people think over picking it or fancy bio-corn fit waffles, not counted as bread. While economy based on large quantities of basic bread, may have lover prices. Especially when people earn less. While PPP can be used when compering same types of economy, it is extremely finicky statistic.

[@JmKrokY]

Cool

[@Half_Centaur]

Nobody can predict the future, least of all economists, but I predict that he will say "nobody can predict the future, least of all economists" in this video.

[@viktornicht260]

Didn't even take a minute

[@ReiP95]

I guess you're not an economist then

[@nellym46664]

Don't forget the part where he says "I don't want to repeat too much..."

[@ReiP95]

@@nellym46664 "...stability and confidenze..."

[@Angel-sk1wg]

Got em

[@jonathanberner5501]

I would love a video explaining the role of the IMF and world bank, how they operate, how they’re funded, their impacts on the economy, their history, etc. I didn’t realize until yesterday that I took these institutions for granted and really have no idea what they actually are

[@thee-sportspantheon330]

I find they often appear in interesting places. I really, really don't trust those organisations.

[@logician3641]

They funded the rise of China's Belt and Road and BRICS via American taxpayer money.

[@rifqoadzkiya2002]

Mostly they r making loan and give a grant/fund to do some R & D in some country

[@g.c955]

(maybe) They were created in good faith at the beginning for helping other countries to develop, but ended up as a way for the west to financially colonize the global south. It's like taking credit card loan, you'll be financially crippled if you don't pay it off quickly. Check out Jason Hickel's research.

[@striker44]

Similar to china debt trap loans but with a lot of social constraints. They big guys make the money as usual at the expense of others.

[@CarFreeSegnitz]

1:54 “…should default on its debt…” Would be funny. A huge portion of the national debt is owed internally. We saw recently that many banks hold US treasury bonds as a portion of their fractional reserve, and how quickly that gets them in trouble when the interest rates were boosted so quickly. Full-on default would crash American banking.

[@philmarsh7723]

Full-on default would crash my personal finances too. But it would be slightly better than default by inflation.

[@quintessenceSL]

"Full-on default would crash American banking." And that would be a good thing. Many of the US problems are at the hand of the finacial sector. Too big to fail should have never become a thing.

[@westrim]

@@quintessenceSL That's like saying "road culture is harming the US, so let's detonate EVERY bridge over 4 lanes at once!" To the degree that you're right, it doesn't change that the immediate impact would be catastrophic.

[@quintessenceSL]

@@westrim I've already lived with the conseqeunces of every business with their hand out while once global manufacturing sectors resemble the third world. Catastrophic is how I would describe the past 50 years.

[@OmarTayea]

Yea bro they owe me money I give them money that doubles in 20 years every year and the one that keep up with inflation they better not default 😂😂😂😂

[@JSx145]

I am from the US… our increasing divisions have only exacerbated our extreme short term view of decision making. Our leaders are only trying to survive their next election and are making wildly bad decisions that will very obviously hurt our future. We are existing solely in the harvest phase, where we extract every possible value out of our past investments, all while putting nothing back in for the future. The level of consumption and the expectation of infinite growth is unsustainable (for the economy, for the environment, for everything). The key to us not pissing away our advantage is getting out of that mindset, and not letting a bunch of politicians lead us into a broken future that they will not be around to pay for.

[@filipelimartins]

"expectation of infinite growth is unsustainable" people like to repeat that, but I've never saw a real reason for that.

[@LucasFernandez-fk8se]

@@filipelimartinsinfinite profits without new inventions are unsustainable. Wages are stagnant in the US and anytime they go up they dump a bunch of illegals in here, they lobby for tax cuts for themselves and they buy up all the houses and rent them out for double what a mortgage wouldve been if they didn’t buy up so many houses. The point is while not all tax cuts or immigration or rentals are a bad thing the US citizenry have been pushed and punched economically to the breaking pointe. Obviously unlimited economic growth is sustainable if we keep increasing efficiency of resource usage and invent new more efficient ways of doing things. But we haven’t been doing that. We have just been squeezing the working and middle classes

[@lukacore9151]

@@filipelimartins Resources arent infinite

[@elanfatal7174]

@@filipelimartins I'm something of a dilettante in economics, so I'm happy to be corrected by someone that knows better, but the claim of the unsustainable nature of infinite growth seems to be grounded on our finite material conditions. It seems fair to say that no economy, no matter how highly developed, will ever be completely dematerialized; thus any growth would necessitate some further material production or consumption. Logically, there should be a limit, but we are not exactly sure where that limit is.

[@filipelimartins]

@@lukacore9151 That didn't impede the growth we had so far.

[@Dannyholt33]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[@sattler96]

Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation.. what steps can we take to generate more income during quantitative adjustment? I can't afford my hard-earned 180k savings to turn to dust

[@Nernst96]

@Mussa653 I've actually been looking into advisors lately, the news I've been seeing in the market hasn't been so encouraging. who's the person guiding you?

[@Nernst96]

I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.

[@romeomargot-picquendar1281]

How are we in a recession when the economy is currently growing at a pace of over 3.2% and we are at full employment? Our inflation rate is also one of the lowest one in advanced economies. It's time to be bullish on the US, not the time of the Bears.

[@sirius940]

There is no stagflation in the United States today. The economy is growing and inflation is cooling.

[@keithwagg4112]

Seems ridiculous that real estate is seen as such a big investment option for economies. Australia has practically no technology exports but massive investment in real estate through tax incentives. It’s not like you can export a house but you can make it much harder for younger people to even have a house to live in. Think of what that money could do if invested into advanced and value adding industries. Seems like whoever came up with it wanted to see living standards collapse.

[@Steadyaim101]

Its the same here in Canada. For the last 4 years, we have had more money invested into real estate trusts than into capital development. Our economy is literally cannibalizing itself to keep up this fetish of over priced, over-speculated real estate.

[@raylevi5343]

Because technology is harder. Real estate just needs you to swing your weight around.

[@crash.override]

It was devised by the rent-seeking class

[@GJ_DM]

Capitalism follows the path of least resistance. Monetary policy opened the door for easy returns at the expense of R&D, technology, and of course the working class. Capitalists will always seek the path of least resistance, even if it is eventually at their own expense. Many have said before that the system eats itself.

[@jonpaul3868]

Australia is funny, man. First world country with third world country economy

[@ddpsf]

The projected demographics out of China do not support the view that their economy will grow over the next 50 years, but instead, will shrink as the population ages with no replacement.

[@Wilhelmofdeseret]

Yea this dude is clearly stalling on some data and ignores that part

[@jamessullivan6031]

That's if they don't learn from EU and American and increase imergration

[@dcisrael]

Plus the video admits that robotic labor will overtake human labor. The world order cannot productively continue this way but the video keeps raising incredibly damning points and then just casually dismissing them.

[@temistogen]

Why do you think that economy would be tied to population there. Where is Indian economy in comparisson to Chinese?

[@dcisrael]

Countries caught in middle income traps cannot "learn" to be the EU and America - we have higher immigration only so long as we have higher wages.@@jamessullivan6031

[@imadabbadi9665]

“At the beginning of the empire, the tax rates were low and the revenues were high. At the end of the empire, the tax rates were high and the revenues were low.” -Ibn Khaldun, Al Moqaddimah

[@herp_derpingson]

Laffer curve

[@greatwolf5372]

His asabiya concept has influenced my ideology very much.

[@vindex7309]

To be fair, if the empire had maintained the former, it’d probably be around today :p

[@grimaffiliations3671]

good thing that US doesn't need revenue to be solvent

[@unholyrevenger72]

And yet the American Empires golden age saw high tax rates and lower revenue, and here at the end we see low tax rates and high revenue.

[@JLZcoche]

Bro, she is recommending taking the Argentina path. Default and isolation to industrialise

[@eirikarnesen9691]

thats what america is now. its the consequenses of not being a white nation anymore

[@stevemartin7464]

Perhaps thats the answer; get rid of tons of regulations and free economies up, regulations are part of the issue and they add nothing but more civil servants shuffling some paper or other across some desk or other to make some politician less unhappy, while costing the world trillions as people sit and fill in 1230 documents to be allowed to sell a TV.

[@sliftyy]

Yes, just like America was between 1789-1945, America had insanely high tariffs which was a boon to it's domestic industries and it's domestic market was big enough to still be competitive.

[@Anzallos]

11:00 Shows Michigan Central Station as an example of failing infrastructure when it's soon to be reopened as a fully rejuvenated facility for Ford and Google. Yeah, the US lagged on infrastructure, but MI Central ain't the poster child it was a decade ago. -Tech Founder operating out of MI Central

[@markpukey8]

I hear you, but cut them some slack. It's stock footage they could use without paying royalties.

[@briantbmoth6472]

Same about Ohio too. Intel is building a new operating office in Central Ohio and Meta is in New Albany Ohio. Tech is coming and replacing some of the older manufacturing industries.

[@arthas640]

im interested to see how the recent infrastructure investments will pan out long term

[@timothydevries383]

Macroeconomics are so interesting. However, in reality at a micro level it's way too brutal on individuals. In developed countries, such economic factors cause technical specialists to lose their jobs through no fault of their own with little hope of finding well paying work again.

[@kerwinbrown4180]

I have seen many USA cities collapse economically so it is not just individuals. I expect states to collapse next. Some areas are growing so the overall picture for the USA is hard to grasp. The globe does seem to be improving but they were pretty bad in the beginning.

[@classiclibertarian]

@@kerwinbrown4180 which states and cities are you thinking about?

[@mikolowiskamikolowiska4993]

It's their fault for not diversifying investments

[@classiclibertarian]

@@mikolowiskamikolowiska4993 so picking a major in college (like mechanical engineering) is stupid and people instead should just not pick a major?

[@kerwinbrown4180]

@@mikolowiskamikolowiska4993 You seem not to comprehend what limited wealth means. Economy and wealth are different. Even diversifying isn't a guarantee but it is more stable that not diversifying. Too many lack investing skills even if they have the funds.

[@csr2120]

11:43 One positive trend is that the amount of U.S. Treasury bonds that "developing economy" China has on its books is decreasing. Japan became the largest holder of Treasuries last year with approximately 25% more than China.

[@BerryReymond]

This is because investors are cashing out of China and converting Yuan to dollars on their way out. China must sell the bonds to get dollars to cash them out.

[@dlewis8405]

I would be a mistake to take the per capita income lines for Indonesia, China, and India and extend the projections 30 or 40 years out so that they surpass per capita income in the US. These countries’ incomes are growing from a low baseline. It won’t continue. The US is a huge country with lots of resources and arable land relative to the number of people. India will never be richer with a billion and a half people living on a quarter of the land.

[@nishant54]

Absolutely but foolish indians want to be superpower on fantasy world😂😂

[@thebestevertherewas]

They will get old before they get rich

[@herp_derpingson]

Yeah, I found that sus as well. Overall GDP maybe, but not per capita.

[@americameinyourmouth9964]

China’s old growth model is at its end the CCP knows that and regularly proclaims they must shift from low value manufacturing to high value manufacturing by shifting from export led growth to innovation and consumption led growth. But their policies of prioritizing state enterprises over private companies leading to negative total factor productivity growth since 2016, a failure to maintain a growing working population like through pension reform as women retire at 50 and men at 60, and a failure to unlock Chinese households savings for consumption will all lead to low single digit growth rates over the next few decades.

[@CliffSturgeon]

Not even taking into account the massive demographic collapse happening in China, which was mentioned in the last video IIRC. Weird.

[@harshitadas1435]

"... where the balance of global influence is not controlled by democracies" Both India and Indonesia are both democracies. They have their problems and issues, yes, both ranking much lower on the democracy index, but like India is widely known as the world's largest democracy.

[@Vidler13]

India is a democracy in name only at this point. If you don't think so, ask anyone who isn't a Hindu how they feel about their representation...

[@ericsohn5084]

It's democracy and majority decides. Hindu is the majority.

[@lenn939]

India is to Asian democracies kind of like what Hungary is to European democracies. The US doesn’t rank that highly either on the democracy index and is also classified as just a “flawed democracy” so the current superpower also isn’t a pristine example of democracy unfortunately. However, countries like India, Hungary or Indonesia are still worse and China is a complete nightmare for anyone who believes in liberal values.

[@nishant54]

​@@ahisheks2776Election is not democracy fool. India is low on every index of freedom. It's hindu authoritarian state now leading to civil war probably.

[@nishant54]

Greece is the oldest democracy fool. That's not the index of freedom.

[@jaskarvinmakal9174]

here's the problem with the Silicon valley example, that money is not going to programmers making the next big thing, that average increase is coming from executives and venture capitalists often tied together in one way or another.

[@AL-lh2ht]

For Silicon Valley investors it’s basically a pump and dump scheme. Occasionally a project actually is success with long time returns. But after the focus is incresing stocks irrelevent of long term success.

[@Markdfadf]

How is that a problem? If programmers could create on their own they would and get all the gains. But they don't. They need investment. The programmer bears none of the risk and gets a stable income. The investor bears all the risk (90-99% of startups investments will lose the investor money) so logically they need a high payout to make the investment worthwhile.

[@Freiheit1232]

That’s all workers ever… sweat of your brow gets you Pennies while money makes a lot more money with no effort whatsoever

[@Markdfadf]

@@Freiheit1232 Except it takes a lot of effort and very few people allocate capital well. Most workers are readily replaceable.

[@lukeedwards7677]

​@@Markdfadfthe problem is that the share of revenue that they take proportionate to the initial risk is far greater than it would be just to warrant making the investment The programmers and technicians may be well paid compared to non-technical peers, but the amount that they are remunerated proportionate to the amount of revenue that their work brings in is clearly out of whack (And that's before discussing non-technical workers' pay proportionate to the amount of revenue that their work generates...)

[@SuleymanOsman]

A good percentage of US debts is held by US financial systems. Cancelling US debt would wipe out US financial system.

[@nishant54]

Nope only option is repaying the debts sooner.

[@RabidPrairieDog]

The feds can just print more money to "repay" itself. A bad idea, but still an idea.

[@geoffreybaigon7789]

the current financial system would mean that it would first wreck the rest of the worlds economies

[@doujinflip]

The last time the US paid off all its debt, it sparked wild speculation that led to the Panic of 1837, which was basically a Great Depression that lasted a decade; the next boom wouldn't really come until California gold put more money back into the system. As scary as debt sounds, it also tempers fanciful mass investments that -- if about 90% of new ventures fail within 10 years -- realize mass disappointment.

[@nutmaster7794]

Sounds good to me

[@CatsMeowPaw]

The USA should abolish tipping culture entirely. With anyone in the service industry now demanding a 25% or greater tip, it's thoroughly annoying consumers and may be an impediment to people going out and spending more freely. If a tip is received in cash it's almost certain it will not be taxed either, depriving governments of revenue. Will service prices go up? Sure, but not as much as people think. Right now we even have people who provide just 5 seconds of service holding their hands out for a tip.

[@jds1275]

The solution is to stop going to those places until they relearn what a tip actually is. I really wish I knew the idiot who started spreading the wrong idea that a tip is anything other than a little extra as a reward for doing a good job.

[@interstellarsurfer]

Abolish tips - sure, but allow tipped workers to set their own rates. No pay, no service. 👌

[@Stealth86651]

On one hand, I get that tips not reaching taxes is an issue. On the other hand, so many tipping jobs pay so little and require a lot of input for vehicle/tool maintenance and replacement as well that many people simply can't afford to have their tips taxed. Not all, but many. No matter how you cut it, the government is failing the people on worker rights/wages and that will always be the base issue. Without companies fearing the government/people, they'll bribe politicians to strip social services and replace them with privatized, more expensive options. Just look at what was attempted on the Postal Service, borderline terrorism IMO.

[@porkch0mp538]

Tips are such a small amount of the economy and service workers mostly don't make a living wage. I think you've been watching too much tick tock and fried your brain

[@tbled52]

"depriving governments of revenue" yeah right their priority shouldn't be revenue

[@adamperdue3178]

Hurting yourself to hurt somebody else even more is almost never a good long-term strategy.

[@ВладиславВладислав-и4ю]

Hm, what?

[@adamperdue3178]

@@ВладиславВладислав-и4ю I forget the exact context of the video, but basically if the USA were to damage it's own economy in the hopes that it hurts China's economy even more.... Then the US economy has still taken a net loss. Even if China collapsed, it wouldn't suddenly make the US more prosperous.

[@ВладиславВладислав-и4ю]

@@adamperdue3178 Do you think it's better to leave them alone and let them develop without hindrance? The US, having power, did not destroy China and Russia, but China and Russia are not the US.

[@ВладиславВладислав-и4ю]

@@adamperdue3178 You think it's a fight for prosperity and resources, when in fact it's a fight for the existence of the West and freedom. If we lose, China will not give a second chance.

[@adamperdue3178]

@@ВладиславВладислав-и4ю I think there's ways of not supporting those who may be hostile towards you without hurting yourself in the process. I personally think the best approach to China is a gradual divestment. Staying in China is (and has been) a bad idea if your company has any intellectual property, because China will just steal it and you'll be worse off in the long run.

[@DannerBanks]

I'd argue that rising house prices is also a function of any local government being too cowardly to rezone for denser housing. As a former seattleite, I'm appalled by Queen Anne hills house prices

[@markpukey8]

I can't speak for WA, but in CA our governor signed legislation that makes it much, much harder for a local zoning board to deny multi-family housing in any part of the state. It might not be perfect, but over time this will help quite a bit.

[@arthas640]

it is insane. Once saw a former outbuilding, like a shed someone turned into a tiny house, selling for over half a million in King County. Zoning laws are a mess and Washington insane building codes and taxes make it difficult to build houses affordably. I used to do commercial and residential construction across Washington for nationwide companies and even if you take our higher wages into account it still cost 2-3x as much as other states even building the same building in a similarly sized city. One did a project in Olympia and the general contractor said it cost as much in Olympia (population of like 45k at the time) as in Manhattan (over 1.5mil at the time). Between all the taxes and permit costs the government was making more money off a project than all the workers and companies involved combined.

[@egal1780]

11:52 I'd say that a lot of it is overconsumption, especially because of the believe that interest rates wouldn't rise for a quite a long time... But maybe this debt has also exacerbated by speculation and asset bubbles caused by 0% interest rates.

[@pedrotomas5666]

Governments should allow people to make other type of investments, reducing taxes and giving incentives for capital investments and helping to start a business for "normal" citizens.

[@thebestevertherewas]

A decline from 40% to 32% is 20%, not 25%. Percentage Change = (New Value - Old Value) / Old Value * 100 In this case: Percentage Change = (32 - 40) / 40 * 100 Percentage Change = (-8) / 40 * 100 Percentage Change = -0.2 * 100 Percentage Change = -20% So, the decline from 40% to 32% is a decrease of 20%, not 25%. The negative sign indicates a decrease or decline from the original value.

[@harshsoni2229]

🤓🤓

[@XhoowieX]

@@harshsoni2229 you're so right, how dare OP comment about nerdy things like STATISTICS 🤢 and NUMBERS 🤮 when we're just trying to enjoy our cool video that has nothing to do with those things. Honestly, the way they typed their comment it's like they think this video is about economics or something.

[@harshsoni2229]

@@XhoowieX dude chill out!! I am studying economics myself. I recently found out that that is a "nerd" emoji and wanted to use it. No need to make a big deal out of it. P.s. kudos to that person who found out this percentage error. No one would have noticed it had it not been for him/her!!

[@James-ig3ri]

@@XhoowieX This dude just thinks he's incredibly smart for pointing out an error everyone was aware of like a flagrant homosexual

[@AhmedQadhi]

I love your videos, but I would really like it if there's a subtitle to help those who aren't fluent English speakers. Also that will help in translating the subtitles to other languages which then in return will increase your reach and views

[@philipberthiaume2314]

Isolation has a price. Consider illegal US sanctions on Canadian softwood. Canada does softwood very efficiently and the lumber lobby in Washington successfully argues for large tariffs every year to be put on Canadian softwood. The result is s staggering addition in price of $12,000 to $18,000 per every single home built in the US. The question them becomes this: Are American homebuyers better off protecting an inefficient industry? Or having more affordable homes... Which is the priority.

[@nishant54]

Foolish people don't have priority. They will obey their masters even if told to starve. They don't have courage to fight the politicians' dogs i.e. police and military to get what they want and make police and military under people's control.

[@n00b1n8R]

Did i zone out for 15 minutes or did they totally avoid directly answering the questions posed at the start of the video?

[@and2244rew]

It does feel like the globalized economy is leaving a lot of Americans out. We have access to cheap goods but have to move to an unaffordable to get a job.

[@geoffreybaigon7789]

Well china only started to develop after Nixon went there and they switched sides in the Cold War and turned on the soviets, so it unfortunately does leave a lot of Americans out, and that's by design so that the rest of the world could catch up with the US after the 2 WW

[@davidbrayshaw3529]

It's not just Americans that are getting left out. The same problems are being felt across the entire Western World. They're probably a little more obvious in the US due to a cultural propensity for individuals to take on dangerous levels of debt and the absence of safety nets, relative to most other Western economies.

[@torpedospurs]

There is nothing about globalization that requires the USA to neglect its own infrastructure. It did that all on its own volition.

[@jimcronin2043]

There are many people in developed countries, like the USA, who are not cut out to be knowledge workers or even skilled tradesmen/women. Their abilities might limit their earning potential, but they need a means to make a living. We are generating insufficient opportunities for these people. These people do not expect to make a lot of money but they do want to support themselves. Otherwise they devolve into a life of government support, gang activity, etc. which is debasing and dehumanizing leading to a general breakdown of society. We know that we must compete with the lower wages in developing countries and of China. But we must remove artificial advantages enjoyed by China and others and the misguided internal imbalances that we create.

[@markpukey8]

Thank you for your post. You raise a Very Important Question, one that the American people really need to have a public discussion about. If a normal person, who wants to work, simply cannot find work... should we continue to leave them broke and hungry and ashamed... or should we recognize that this is 2023, not 1923, and automation and sophistication in our production methods really do mean that we don't need 100% of our people working, and the ones who don't work ARE NOT automatically lazy or unworthy? Should we provide reasonable but minimal shelter, food, health care and education to EVERYONE regardless of how hard they work? Should we let some less intelligent or less capable person have some dignity in their less productive life and let them focus on raising their kids, one of whom might well be the next Einstein if they have a safe, secure environment in which to live and grow? For myself, I believe the US is rich enough and secure enough that a reasonable and GUARANTEED safety net is entirely affordable and in Americas long term interest. And it's not like those labor intensive factory jobs are ever coming back... this problem is not going to go away, we need a better solution than shame and poverty.

[@jimcronin2043]

I would assert that you are suggesting an incorrect approach. The focus should be on a renewal of semi-skilled jobs which can come about by erasing the artificial barriers to them. We have to realize that we have to look at both our outside competitors like China and our internal practices like welfare programs, minimum wage explosion and outright cash handouts that peaked during COVID. We have now socialized a great part of society to expect to receive government benefits and disdain earning and our welfare rules reinforce that. Our education system has collapsed. We require a rebuilding of society from the ground up-we have sunk that far. Perhaps we could subsidize persons with low wages to a minimum amount based on bona fide effort. And we should remove rules that discourage two-parent households. Also, expanding the workforce and the number of workers is the best way to start closing our government spending deficits. That said, we will always have some people who are not able-bodied and will be unable to work due to age, illness, injury. They should be decently supported but in a different system than those eligible for the workforce.

[@markpukey8]

@@jimcronin2043 lol, I think we might be the last 2 people in America with reasoned "liberal" and "convervative" views that avoid all the shouting. I thing we tried every form of "reduce benefits and make sure they deserve them first" and it has led to poor outcomes. From Reagan onwards, we tried those things and they don't work well enough. So it's time to try different things. You say "Also, expanding the workforce and the number of workers is the best way to start closing our government spending deficits." but we have historic low unemployment. WHERE WILL YOU FIND THE WORKERS? I do not believe forcing 100% of work-age Americans into jobs would be enough to have the economic impact you describe. And a massive increase in legal immigration is pretty much a non-starter in America these days. On the other hand, making people who pay 0-10% of their multi-million dollar incomes pay some more taxes (and large corporations too!) would directly improve the bottom line. I think we can both agree that spending LESS and spending it SMARTER is a good idea in every case. (To be clear on the taxes, I see a big difference between revenue and profit. A company that actually reinvests in themselves deserves tax breaks. One that does stock buy-backs and pays massive bonuses to execs does not even they both claim the same "profit" at the end of the year. Taxing their profits as we did in the 50's and 60's does not seem crazy to me.)

[@DannyBoy443]

I love (as a metro Detroiter lol) how as soon as he said infrastructure is getting older, it brought up the downtown trainstation.

[@napoleon9514]

Mexico, Russia, Brazil having higher ppp than Japan, Germany around 2050 is laughable.

[@leonelgaldinomonteiro4783]

More people and natural resourc. Japan lost position to China, like cars and tvs.

[@TrippinCozy]

@@leonelgaldinomonteiro4783yeah, since when has “more natural resources” been a predictor of economic success? How about the entitety of Africa? They should be very rich then. Biggest military is a much more “convincing” argument.

[@TheGoukaruma]

Especially Russia. They have an aging population and their fossil fuels are less in demand. 2050 is around as close as 2000. So why should it happen this time?

[@shubhamgarg09]

PPP doesn't only depend on GDP it also looks at how cheap it is to live in that country So it's a balance of cost of living and gdp so it is not hat surprising

[@DoubleBob]

Germany is ruled by people who hate Germany. Why is it so surprising to you that it will continue to fail?

[@stephenmccalley8346]

I love Dead Aid, it was hugely influential in whom I support charitably. I wish more senior policy makers in the US government would read it and act accordingly.

[@TimBryan]

I think it would be really useful if you took a look at Peter Zeihan's books, I think he presents a pretty coherent look at the development of the global economy specifically because he pays attention to demographics. For example he sees a large slowdown, and maybe even collapse of China at the end of this decade due to the One Child Policy (they took too long to correct the policy, so now there's a critical lack of young people to keep the economy productive).

[@motoquipe]

He predicted the collapse in 2010 too... hasn't happened

[@gpsoftsk1]

There is not. Young people are unemployed now in China.

[@motoquipe]

@gpsoftsk1 as they should be. They have a high unemployment rate from ages 16-24 but most Chinese are in university that age. Be wary of propaganda, and think for yourself.

[@buddermonger2000]

​@gpsoftsk1 Ironically, this seems to be a theme with demographically advanced countries. Maybe it's just due to the way it plays out and the workers involved, but a lot of the aging economies seem to have high youth unemployment. I don't know much about Japan, but Germany, Italy, and seemingly Korea too face this issue. Not to mention there is a large slice of unemployment that is semi-voluntary as it's less ability to find work and more that they just refuse to work the terrible hours offered. Nothing wrong with that, just a different case than forced unemployment.

[@karenwang313]

@@buddermonger2000 It has more to do with the social welfare system than anything. Hiring people is expensive in European countries due to all the taxes and stuff they'll have to pay,, so their companies aren't as willing to hire too many people. Then again, China has no welfare and has the same problem, so theres a good chance I'm wrong

[@americameinyourmouth9964]

10:28 A decline from 40% to 32% is a 20% decline you could say 40 is 25% larger than 32 but when you talk about declines you start with the higher number.

[@peterdisabella2156]

Trying to kneecap the world in order to maintain a competitive advantage is not really the kind of thinking I want to hear from economists.

[@NotShowingOff]

Kneecapping has been happening for atleast the last seventy years.

[@MrBizaaro]

Interesting you think countries don't do that already. They are talking about taking it to a 9 and doing it more openly now.

[@TheBrazilRules]

If it is towards China, I am 100% behind it.

[@onigirigorogoro]

​@@TheBrazilRulesI yearn for the day the Us collapses. Only then, the world can become a better place

[@etho7351]

When politicians take power they have to explain why they're letting the American people lose so that everyone else can win

[@StevieFQ]

How would comparison between countries in PPP be at all relevant. PPP mostly adjusts for cost of living which is most relevant on a per person basis so the only one I was ever interested in was "GDP PPP per capita". I could see some argument being made that it makes it cheaper for govt to implement infrastructure projects but I don't understand how you could go further than that. Let alone argue that PPP should be used to compare 2 economies.

[@chillxxx241]

It isn’t relevant. It is a way people around the world try to feel better about their economy. It’s been pushed as a measure by the CCP in the same way economists don’t want to use GNP anymore.

[@campbellmorrison8540]

But you didnt really answer the question about the US closing its doors and defaulting in its debt, what would the worldwide effect be and would it really be an advantage to the US or would they only be shooting themselves in the back pocket and foot at the same time?

[@tonysegadelli9421]

In the 1980s Japan was about to become the biggest economy but that didn't happen. Now China is supposed to be taking over but it's economy is at the start of a massive collapse. The USA will eventually stop being top but I can't see it happening in my lifetime

[@ericsohn5084]

It didn't happen bc US prevented it lol

[@eirikarnesen9691]

america is no longer a white nation, and so no longer capable of being on top

[@pablopanzitta3693]

America must be Self Reliance in Food, Energy and Industry to be Great Again. #Trump2024 #GodBlessAmerica #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽

[@DJPleasureSeekingMissle]

Lol @ massive collapse. That’s what people have been saying about China for decades. China is growing and will continue to grow.

[@tonysegadelli9421]

@@DJPleasureSeekingMissle Housing is 30% of GDP and people aren't buying at the same rate anymore. Officially 1 in 4 young people can't find a job. China has recovered from the lock downs caused by releasing Covid from your labs. Economic collapse has started. Enjoy being delusional

[@DaZill07]

Another good one, I really appreciate the work. I've learnt a lot about how the world works from your videos in the past 2 years.

[@caustinolino3687]

2:08 What does income inequality have to do with PPP of the US vs China?

[@vl8962]

Can China overcome its geographical and ideological challenges. But more importantly, can it sustain its economy enough to grow into a predictable caretaker of global finance?

[@MagnumInnominandum]

😂

[@davidbrayshaw3529]

There is one thing that few people understand in relation to China. Patience. Western entities plan and account for a week, a month, a quarter or a year. In the case of government, they plan and account for a term. The Chinese don't work this way. They plan for, and account for, centuries. It is inevitable that the economy of China will face its challenges at times. In the West, we will measure this by a metric that we apply to ourselves. We'll sit here and pat ourselves on the back for predicting China's collapse. We'll revel by declaring capitalism and democracy as being clearly superior to Communism. We'll raise our glasses to a potential, yet unrealised, resurgence of our own economies. And while we do this, the Chinese will keep working. It took 2,300 years for China to build the Great Wall, stone by stone, by hand. 2,300 years to fortify itself against its Northern enemies. It took 850 years for it to build the Grand Canal. Can a modern China, with newfound wealth and technology, overcome its geographical and ideological challenges? Can the same China sustain its economy enough to become a predictable caretaker of global finance? These aren't really questions that require an answer but rather, they require a time frame.

[@MsJubjubbird]

I don't think it wants to. It gets ahead be devaluing its currency. It wants to be big and powerful but it doesn't want demand for its currency

[@ahmadshohaib7589]

You can't just print more dollars. This is bias towards other nations. The buble will eventually burst one day.

[@markpukey8]

@@davidbrayshaw3529That's nonsense. The CCP has demonstrated REPEATEDLY that they lack the ability to take a long view. They are as bad, or worse, than any western government in their ability to plan ahead. * Tiannamen Square. Why did they kill all those students? There was no need. * Hong Kong. Signed a 50 year treaty with the UK. Broke it within 20 years. Why? * Signed a treaty on the Freedom of the Seas. Then built artificial islands off the coast of the Philippines. Why? Never pretend the CCP is the same as historical China. They are not.

[@karanmalpani4149]

love the video as a student who is pursuing economics this is really helpful. also a humble request can you do a video on the us healthcare industry.

[@whitejacket9725]

Don't expect a US Healthcare vid. It's Economics Explained, not "Human Atrocities Explained"

[@aroto]

that would be really interesting actually

[@Sataka23clips]

When will everyone admit that globalisation only benefited a few countries. Look at africa why are they not opening factories there instead everyone is going to Europe

[@thetrailer5050]

@@whitejacket9725 To be fair, In the UK they would simply tell you to wait for 10 years to treat an emergency and in Canada they would simply offer to kill you through MAID. Healthcare is pretty bad in the Anglosphere(though maybe the Aussies have it better)

[@goofer42]

+1:06 great video, but important to clarify that both India and Indonesia are democracies, even with some flaws

[@daniellarson3068]

India is the world's largest democracy. India has more English speaking people than any other country although it's a minority language.

[@mariotoffia]

Is it true that BYD is the largest EV company? - I thought BYD did all from ICE, hybrid to EV - thus the comparison with tesla would then not be right? Or am I wrong in my assumption of BYD?

[@tttm99]

Love the "no frills" delivery. 👍

[@heinesau307]

I love the graph at 7:06 . I'm convinced economist live in a different reality, cause that graph is a strong counterargument to everything he is saying. Medical care and housing going up around 100% ..... that is two of the biggest expenses in most people's lives, and the price of televisions of all things is supposed to make up for it??!!?!??!

[@janeteholmes]

The main beneficiaries of globalisation are the billionaires and multimillionaires who own the companies that outsourced their manufacturing to China et al. “Consumers” are not an isolated group. We are all consumers, but many of us are worse off as a result of globalisation.

[@kwtr1609]

Thats bs. You might have more debt or a smaller home, but people live longer, more healthy, in areas with much less crime and with cheaper goods for basically every good possible.

[@pablopanzitta3693]

For that reason we must promote the Self Reliance of America in Food, Energy and Industry. #Trump2024 #GodBlessAmerica #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽

[@duckpotat9818]

​@elfrjzeven India has homicide rates lower than the USA (And before you say it, no, homicide is almost impossible to undercount since all missing people and unnatural deaths are counted as homicide)

[@duckpotat9818]

​@elfrjzbesides crime rate has less to do with living standards than you'd think, most of North/South America and Africa have higher crime rates than South, East and Southeast Asia

[@Dancing_Alone_wRentals]

It would be fun to see credits showing who assembled this video. Great watching ....tHanks

[@lazy8528]

Do you mind making a video regarding the best possible economic system that the world can adapt? And what's the possibility to ensure 5 basic human needs to humans ( food, clothing, shelter, education and basic health) by government?

[@Flexible_photon]

A mixture of capitalism and socialism with heavy oversight and regulations for businesses.

[@Jonas_M_M]

market capitalism (i. e. neoliberalism)

[@filipelimartins]

what was the economic system which where adopted has seen the bigger historic increase on quality of life? that's not a difficult question.

[@lazy8528]

What's the easiest and simple explanation of china's economic growth?

[@wangyaohan8824]

try the kibbutz system (Israeli), all provided by the community. but, I think that's not for everybody.

[@AS-mc8sl]

Closing borders and defaulting on payments - this is an incredibly asinine prescription....

[@peterpayne2219]

Really good video!

[@BlindBison]

Default alone wouldn’t fix the problem long term. What would be needed is some kind of new force of law to make law makers balance the budget and limit how long and under what circumstances they can run a deficit. What they’ve been doing where they kick the can down the road and run a massive deficit every single year seems like a big problem. People always say government isn’t the same as a normal household when it comes to finance because of their ability to print currency but that doesn’t seem like a very sound argument to me. If the government spends more than it takes in then prints more money to make up the difference you’ve just permanently devalued everyone’s savings via inflation no? Beyond that the bigger the deficit grows the more and more tax payer money is going towards interest payments. It’s just not something that ever should’ve reached this point and the issue is our politicians aren’t held accountable for it and are incentivized to just kick the can down the road.

[@coopergates9680]

Yay! Inflation-prone fiat money /S

[@royce9018]

😂😂😂

[@vaderjohnson1525]

6:26 is that Santiago?

[@GiRR007]

The us would probably benefit the most out of any other country from isolationism considering it basically has all the natural resources it could ever need. Oil, food, water, lumber, ect ect, literally everything.

[@pablopanzitta3693]

You're right, I think the same thing. America must promote the Self Reliance in Food, Energy and Industry and so there will be not left to oppose to America. #Trump2024 #GodBlessAmerica #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽

[@Wezwp]

whaT ABOUT ADVANCED SEMI CONDUCTORS?

[@drjustin84]

@@pablopanzitta3693you have the same economic philosophy as North Korea

[@GiRR007]

@@Wezwp The US can make semiconductors, we just don't since its easier to just by them from china. But even now thats changing as we are scheduled to be making more conductor manufacturing plants right in the US.

[@pablopanzitta3693]

@@drjustin84 North Korea doesn't has any Natural Resource, Climate and Landscape to be Self-sufficient in Food, Energy and Industry as America has. America must promote the Self Reliance in Food, Energy and Industry and so there will be not left to oppose to America. #GodBlessAmerica #Trump2024 #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽🗽

[@UHaulShorts]

8:40 Poor example a wealth gap inequitay. How manay have *FLED* thurr?

[@runescapestats534]

By 2050, sure China will exceed the US in total output but Indonesia and India? No way. These countries will continue to grow but we’re only talking about 27 years. These nations will not go from relatively poor developing countries to overtaking the US economy in just over a decade. Also yes China is creating their own commercial jet aircraft now but I highly doubt we’ll see many of these taking market share from Boeing and airbus in western economies. Maybe they’ll do ok in Russia… speaking of that remember the sukoi superjet?

[@fangdog29]

That table was clearly in PPP terms. Having said that, the expectation is that India will catch up with US in nominal terms sometime in the next 2 decades

[@invasion8318]

It was meant by production output - and China did that years ago already

[@kanekiken2002]

China has already exceeded.

[@thebestevertherewas]

IT IS NOT POSSIBLE TO BEAT THE US in terms of NOMINAL GDP

[@robertortiz-wilson1588]

Very well done.

[@FirstnameLastname-ob1bp]

When I was a kid anybody with a good job or 2 decent jobs could afford a house. Today, a tiny home costs the same as a large home did back then. Honestly, I feel like the 2008 crash was a good thing and I would welcome another one! $400,000 for a fricken tiny home is downright shameful!

[@themachine9366]

Maybe because we have the same amount of land, yet twice as many people trying to live ever more closely to one another. Basically, housing prices rise with population density.

[@rongoldman7520]

​@@themachine9366population density would be a great argument except we have seen communities where this theory is disproven; we've also seen what are frankly arbitrary delineations of geographical regions (what makes west Hollywood different geographically to the rest of LA county? It's hilly?) None of this is explained through population density.

[@ordavis]

@@themachine9366 I don't know anything either but it's very clear you don't know enough about economics to speak on this in an intellectually responsible way. Much like economics in every other sense, there are a plethora of factors which play in to housing prices.

[@gabrielf9296]

7:05 is it really more important to buy cheap electronics than to have access to Healthcare or affordable housing?

[@owleye4510]

Idk isolation seem like double edge sword. On one hand if the US stopping being the world police it wouldn't need the military budget it has, and the global public wouldn't see the US as an aggressive tyrant, even though its more of a peace keeper. However the US has limited the growth of certain countries it deems hostile (Cuba/south America). But isolation would bring more jobs/manufacturing to the US and potentially increase American spending power while leaving the rest of the world vulnerable to conflict. Doesn't seem the best idea on a glodal scale. 🤷

[@pablopanzitta3693]

Isolationism is the best idea to promote the Energy Independence and Re-Industrialization of America to Make America Great Again. Why do we must worried for the problems of the rest of the world? We must be worried for our own problems. #Trump2024 #GodBlessAmerica #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽

[@broadestsmiler]

​@pablopanzitta3693 The reason we should worry about the problems of the world is because a lot of the time, it impacts us indirectly. Conflict in the Middle East? Higher gas prices over here. Russia invading Ukraine? Shortages of grain, sunflower seeds/oil, other industries. Mexico creating more domestic manufacturing jobs? Cheap products closer to home than China. What happens around the globe impacts us, and by having a large military and social presence outside our country, we can shape the world in a way that benefits the USA.

[@pablopanzitta3693]

@@broadestsmiler América must be Isolationist to promote the Self Reliance in Food, Energy Independence and the Re-Industrialization of America to Make America Great Again. #Trump2024 #GodBlessAmerica #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽🗽

[@LordInquisitor701]

people outside of the US is still going to find excuse to hate the US I support isolationist At least isolating us to the North American continent Not because people would like us, but because it makes us less, depending hostile countries China’s one perfect example of that

[@owleye4510]

​@@LordInquisitor701I totally agree! The US should redirect it's focus and influence on the American continents. Leave the rest of the world to it's own devices, but build up and unite the Americas. Making us truly American, a united power house continent.

[@tHebUm18]

9:36 BYD isn't the largest EV manufacturer, over half their vehicles are hybrids--which still have an internal combustion engine... AKA not an EV. It's also unclear if they have any profit per sale on the actual EVs, which limits their ability to move fully to EVs while Tesla still has industry leading profit margins (even against ICE vehicles) on full EVs.

[@Lemmy4555]

This solution looks totally unapplicable to me, we have to deal with the fact that some skills are only available in abroad countries and closing the American economy would inevitably significantly rise inflation and reduce the technological progress in some sectors. It would be quite disappointing to buy an iPhone or a PC in 2030 that is slower and has less features than today's devices no?

[@ElijahDecker]

What skills are only available abroad?

[@erikvan9582]

We can always give up some luxuries for a better and stable future

[@ThrawnFett123]

​@ElijahDecker only is a terrible word for it since often times its US designers sending US engineers to oversee overseas assembly of devices and goods. The issue is that dollar amount per device. Saving even 2 cents apiece makes it more attractive to overseas the bulk manufacturing when talking about millions of pieces. Until you take that away, the US won't have the bulk manufacturing base. On the other hand, the US has vast natural resources and a highly educated workforce. The odds are good that within 2 years most bulk manufacturing could be onshored. But they would be a brutal 2 years first

[@Lemmy4555]

Chip manufacturing, wind turbines, solar panels, about 75% of car manufacturing, mass food, and clothing production - the point is that the USA relies on imported goods in some sectors to sustain demand. Closing the economy would result in less food, less clothing, and fewer electronics. The only way to meet the demand would be to increase jobs in these sectors where the US currently lags behind other countries in both technology and efficiency. However, let's suppose we do it anyway; you somehow have to convince millions of people that their engineering jobs are no longer a priority because we need to produce food and clothing to meet the demand. This is the Argentina's direction.

[@toms7114]

@elfrjz There are no automated sewing machines that take a pattern and then cut and sew cloth to that pattern without human involvement. The reason is that cloth behaves too erratically for computers to predict how it will bunch to make the sewing practical. All seams on clothes are done on a sewing machine that is no more advanced than one from the 1980's and requires a human to be directing how the seams are made. As to the original poster saying that there are skills available in other countries that aren't in the US, that is total bollox. There are certain key pieces of technology held by companies that aren't incorporated in the US, EUV Lithography comes to mind, but so long as the US doesn't completely close it's borders those companies will still license the use of their IP in the US. Things will become more expensive, but by there being more manufacturing jobs, even if all they are doing is maintaining the robots that do the manufacturing, their will be more steady blue collar work which will provide the rising tide that leads to a healthier economy than the trickle down we have now that is sucking the life out of the blue collar segment of the economy.

[@beback_]

Which of Moyo's books would you recommend?

[@nutmaster7794]

Who knew outsourcing jobs and entire industries was a bad idea

[@pablopanzitta3693]

Was a bad idea. But America will be Self Reliance in Food, Energy and Industry soon and there will be not left to oppose to America. #GodBlessAmerica #Trump2024 #MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🗽🗽🗽🗽🗽

[@grimaffiliations3671]

its the free market pushing for outsourcing

[@DJPleasureSeekingMissle]

Capitalism-spend the least amount of money for a product , charge the most amount for it. Someone out there said that China really did save capitalism during the 2008 financial crisis.

[@brendanwiley253]

As an American it sure was cool that I could get a TV for only half of my 1st job's paycheck. What would be a lot cooler is if with my two job's I had any hope of ever being able to own where I live.

[@AlexFlodder]

I don't see Russia staying on the 6th spot.

[@paulrus-keaton439]

0:53 Say the line, Johnny Economics!

[@isalutfi]

Hello, am new subsciber. Thank you for sharing this great video

[@m_sedziwoj]

8:19 yeah, housing is expensive, but is because people don't understand that something basic as safe place to live, should not be financial instrument. Buying to rent is worst thing which happen for people in last half century, should be ban for companies, and limited for individuals, but this ban should be put in place with help to take credit for low income people, but housing price would collapse, so it would not be as big problem in long term as many would think. Because when is more free houses than people needing them, price should go down fast, but it don't because few which are rent make profit for landlords, lowering price would only lower profit. PS it would solve so many financial bubbles...

[@TheSpecialJ11]

While this isn't "crazy", it still makes no sense to attempt such a radical policy before pulling our heads out of our asses and actually using our political and legal tools to assist the economy in moving the direction it should, namely to greater wealth production at lowered inputs of everything but capital (which accumulates and should increase in input with time)

[@grimaffiliations3671]

we're just starting to recover from the austerity induced lost decade of the 2010's.

[@chidubemnwaohiri113]

I don't know why economists always say and act as if other economies will continue to grow while that of the US just stop growing.....like the Americans will just sit idly by. The way it's going.....the US economy will be at the top for so long that others will stop thinking or talking about overtaking it. The fact the Chinese are not talking about overtaking or acting like it just like in the past is an example.

[@shivendraupadhyay1565]

Make more videos on rising african economies, as I don't think a lot of people including me are aware of how these countries are growing their industries and economies.

[@ax1338]

Honestly I don’t think western people care about the global south’s progress especially Africa.

[@shivendraupadhyay1565]

@@crying-croc That was informative, sad and thrilling at the same time. As a country like Rwanda which went through genocidesa a few years ago is progressing, but other also some countries are struggling.

[@benchoflemons398]

short answer: no long answer: no

[@hi117117]

this topic is actually way more complicated than a video of this length can convey. it's also based on information that analysts are pretty consistently getting wrong across the board. when it comes to the growth of China for instance, pretty much every report out there misses the fact that Chinese people retire 5 years earlier than in Western countries. this exasperates their aging population problem and also moves up the time scale from the 2030s to literally right now. it's also as you say, technological superiority is not guaranteed. if America closes off, there's really no guarantee that other countries can't completely eclipse America, leaving America with absolutely no benefits for these countries rising to greater prominence. it also completely ignores that a large part of the success of America comes from immigration. by shutting ourselves off, we also shut ourselves off to immigrants. this not only means that we don't get skilled labor that we didn't pay for the education for, it also means that America's aging population and low birth rate start to actually matter, where currently we can make up any shortfall by just making immigration easier. however much it might suck that global pariahs are gaining in power, the solution isn't to close off America from the outside world.

[@geoffreybaigon7789]

what part of that's how the US economy used to run before the 2 WW and the growth rates were same as now you didn't get? Plus the US now is energy independent, which was the only link that connected the US security needs to the outside world. And with the rest of the world aging faster than the US there isn't gonna be much of a pool of immigrants to choose from anyways. The self isolation policy is probably the natural and the best way to go for the US

[@Kevinbajamedic]

Majority of immigrants are unskilled labor. At least that is where they start.

[@AlexandroGarcia6492]

Relying on inmigrants to keep your economy afloat is sad tbh You ain't solving the root of the problem

[@markpukey8]

The video was way too short for a subject of this complexity. You are very right about that. On the other hand, this is THE FIRST video I have seen from a random, popular KZbinr that actually discusses the benefit to America for isolating. They deserve credit for that. For myself, this is not a 0 or 100% issue. It's a sliding scale. Right now we're 100% on globalization and supporting it even when it costs America. The video implies that 0% is an option, but let's be real, it's not. The question is how much can we dial it back to help the US, without shattering the global economy? I think we can cut back on the US Navy ensuring everyone's shipping. Save us $50B a year and let China (and others) pay to provide escorts for cargo ships bringing raw material and oil to China. Same for everyone else. And if you subsidize your exports to make them cheaper than US made products... I'm fine with most tariffs to make US goods competitive with yours.. I think America is long overdue for a serious national debate on the subject. Both major parties are calcified on their all or none positions right now. I think they're both wrong.

[@chickenfishhybrid44]

Huh? This wouldn't automatically mean no immigration. Also. The entire developed world is experiencing low birth rates, most worse than the US.

[@benjaminbayer932]

I can find no evidence online that Dambisa Moyo said the things Economics Explains says she said about closing off/isolation and abandoning the national debt. References?

[@John-lh1qx]

Do those Chinese population numbers take demographics into account

[@Stealth86651]

Honestly I wouldn't take their numbers too much to heart. They just discovered last year they "miscounted' their young population by an excess of 100 million. In other words someone padded their report to please the xi. That's one of China's main problems right now, with so many fearing their dear leader taking them/their family, many people will do some incredibly damaging/dumb things thinking it'll make the dear leader happy. Either way China's not exactly going to be competitive much longer due to climate issues, their economical issues, corruption/poor leadership and their crashing population.

[@screamingseal4805]

No.

[@paoloorate2265]

1.4B people will not die in the next 50 years

[@dennisestradda9746]

@@paoloorate2265 biggest retirement home know to man where once child policy kids have to car for parents and grandparents.

[@Lords1997]

Consider watching Peter Ziehan, he’s an economist and geopolitical analyst.

[@mehmeh1234]

Honestly I want the European Union to start a period of isolationism so we can as well properly reindustialize and safe our own economy

[@bunnystrasse]

And less migrants!

[@nishant54]

Stop giving tips to all fools. Give only to those who serves well not demands. It's our choice not duty to give tips.

[@mehmeh1234]

@nishant54 what do you mean with that?

[@nishant54]

@@mehmeh1234 Meaning to give only to those who deserves. Give nothing to poor service staffs. It's not your duty to give tips like taxes.

[@mehmeh1234]

@@nishant54 oh

[@skontejonte]

Amazing video

[@FredSveru.]

maybe not isolating itself, but striving for independence and promoting the development of domestic industries while keeping supply chains within the country, rather than exporting them to non-democratic nations like viétnam or india, to avoid being left behind as europe or the eu

[@FredSveru.]

.

[@johnmartin17t]

true

[@marcussver620]

yes❤

[@nobrakes7892]

u lot mad, india is democratic country

[@thebestevertherewas]

India NON-DEMOCRATIC? It is more democratic than most of Eastern Europe

[@RichardsMiscCorner]

I would love a video describing some of the "traps" or differences in the makeup of what western nation GDP is comprised of versus other countries. There were some grumblings that "GDP" is overly weighed to western economies (UK, US, etc) versus emerging economies that have less services.

[@denniss3980]

I wish we would isolate, but that would not sit well with the military industry complex

[@Markdfadf]

Also wouldn't sit well with people who don't want to be poor and who don't permanent economic stagnation.

[@rn6312]

The US would go belly up with the GDP. It's not smart. It's not seeing the forest for the trees. In other words, we'd start becoming a 3rd word country.

[@noahlemay-assh2651]

9:30 a lot of "shared" tech with China has in many cases actually been stolen without any repercussions and the value of stolen tech is currently in the trillions.

[@aaronbono4688]

Defaulting on the u.s. debt sounds like a short-term solution with some serious long-term problems. It sounds like something that would start the March towards the death of the power of the US dollar and its dominance throughout the world. To me it sounds like an economist Rlran some numbers and completely forgot that human beings have emotions and reactions. It could be seen by other countries like China as an attack and could start some wars. It would completely destroy the confidence the US dollar has attained.

[@erikvan9582]

If US isolates itself that wouldn't really be a problem would it

[@ericsohn5084]

You really think so? US pop is uneducated and unhealthy. I doubt they can run manufacturing sector smoothly at all

[@Jonas_M_M]

A great example of how economics and politics are very different things, indeed.

[@aaronbono4688]

@ConontheBinarian people have been saying that for decades but it's still the strongest out there. Show me an alternative and give me evidence it's overtaking the dollar.

[@erikvan9582]

@ConontheBinarian What indication is there for saying the "Dollar is finished",last I checked everybody was still using it

[@michaelbindner9883]

Investment is a function of household spending (by public employees, contractors and beneficiaries and private sector employees in commercial markets) and government purchases. This is made regardless of how it is financed. Speculation in secondary markets is not part if GDP. It is savings (not investment).

[@vl8962]

Does culture have any role in economic theory? At an academic level? Consumer habits and customs must play a role, but maybe on a macro level it is indistinguishable. Consumerism is driven by culture that is shaped by corporations and individual preferences. But if consumerism is changed, what type of new economic models can erupt? And if you say Communism you lose.

[@denotsevoL]

A more closed off economy is a much more dangerous world to live in. Think about it, the more intertwined economies are the less likely they are to hurt each other and everyone benefits from it.

[@Ondar007]

You should compare economies by GDP subtracted by net debt change😁

[@benceze]

The KZbin algorithm understands its assignment. Recommending this video and another Dambisa Moyo video.

[@petermuller5088]

Oh yes please! And document every minute of this "hunger games meet last man standing" scenario for our entertainment please!

[@BennieBothajnr]

0:13 I might just be understanding this wrong or it might already be accounted for, but in many of your videos you throw in statistics like this as well as similar ones showing how much bigger the world economy is than the past. While I do not doubt that we produce and comsume more now than ever I feel like these should take inflation into account. If we decide tomorrow we are going to add a “0” to all world currency we shouldn’t be able to claim that we have 10Xed the world economic output should we. I would love a clarification on this.

[@Jonas_M_M]

Globalisation has a marketing problem, stemming from that What Is Seen is more negative than What Is Not Seen is positive.

[@eirikarnesen9691]

there are no possitives. never has been

[@johnraven5517]

Very interesting indeed

[@dereklenzen2330]

Holy cow, those are dumb suggestions. Let's clean this up. 1. Exports to the United States account for about 3% of the Chinese economy. If the US totally embargoed Chinese goods, then it would sting the Chinese economy, but it would not collapse it. (Most commentators overestimate the reliance of the Chinese economy on US exports.) 2. A US embargo would not actually cause the Chinese economy to shrink by 3%, but by some number less than 3%. The reason for this is that Chinese firms would sell their goods to third countries for reduced prices. While it would take a few month or years to forge new business relationships with other countries, the slight reduction in the earnings of Chinese firms would not constitute a depression or even a major recession. 3. The biggest risk to China's economy is actually its access to energy imports from the Middle East, which is the main reason why China is building out its blue-water navy and militarizing the South China Sea. 4. Embargoing Chinese goods would hurt the US economy far more than the Chinese economy, because many Chinese imports are intermediate goods that US firms need to run their businesses. A sudden loss of access to these goods would have wide-ranging and unpredictable effects on US production as US firms scramble to find third parties to supply these intermediate goods before halting production of final goods completely. 5. Defaulting on US debt would be simply insane. It would generate a full-blown financial crisis that would make the subprime mortgage meltdown look like a picnic in comparison, with deleterious economic effects domestically and abroad. 6. Even if we put point 5 aside and disregard the effect of a US default on the global financial system, a default would mean that the US federal government would not be able to borrow money for the foreseeable future. Thus, it would imply either printing money to finance the deficit (causing double-digit inflation), or raising taxes and slashing spending quite dramatically in order to balance its budget in short order. Both of these would have a serious impact on Americans' standard of living, over and beyond the economic turmoil caused by embargoing Chinese goods.

[@-aussie-]

It's not about price it's about quality

[@enzonavarro8550]

Yeah, I think these theories are really interesting! I also think that the ones that benefited most of the globalization are the poorest, because it let efficient companies and efficient economies to influence in these poor countries, letting them catch up a little with the rich countries

[@twistedmovies8782]

are you insane? the poorest benefitting? all the poor can do is now go into debt being even worse off then they were already.

[@myselfyuvi]

Yeah you're right.... That's why all the poor countries couple of decades ago are now super rich countries! ✌️

[@markpukey8]

@@twistedmovies8782Reality says you are wrong. Do some research. See what % of the world was "poor" in 1940. Then compare it with 2000 and 2020. A STAGGERING number of the global poor now have access to education, health care, investment capital, access to international markets WITHOUT interference from a colonial power, control over their own natural resources, etc, etc, etc... It's not a perfect world, but are you so ignorant that you imagine Nigeria would be allowed to control it's own Oil resources in 1940 the way they do today? Or Libya? Do you think access to education or health care would be better for for any poor nation 70 years ago versus today? Just because it still sucks to be poor does not change just how much the global average access to these things has improved. And it was ALL due to US led globalization. If you disagree, you had best be able to explain why these nations never managed to accomplish so much any time in the past 1000 years. If all their improvement from their normal condition happened since 1950... you need to explain why if you don't think it's due to globalization.

[@chickenfishhybrid44]

​@@twistedmovies8782the global poor in places like China have benefited. The lower classes rich countries not so much.

[@twistedmovies8782]

@@chickenfishhybrid44 I would disagree to an extent. The poorest are certainly not dying of plague like in the past, but there is nothing that helps them better their situation... Just basically stay alive... And sometimes that's even difficult... The middle class is gone, you have one percenter trash, and 99 percent poor in this world and it's just getting worse with every passing year.

[@michaelbindner9883]

PPP per capita still favors US market by a huge margin.

[@ASmithee67]

Why not just eliminate the U.S. Navy as world transportation cop? China and other nations should protect their own shipments. Once that cost is added in it will become more and more advantageous to pull supply line manufacturing back to the North America/U.S.

[@MsJubjubbird]

Because where there is a vacuum, someone will fill it. They do not want Russia or China doing that

[@DJPleasureSeekingMissle]

US navy doesn’t protect anyone’s shipments. Especially China’s. It’s only for force projection, maybe protecting what benefits itself. As all empires do.

[@michaelbindner9883]

Household income can be divided into two sources: government employees, contractors and beneficiaries and private industry employees. This gives a more accurate view of the impact of federal spending on the economy at large. Default on the debt would destabilize capitalism. Mutual funds and long term investments are leveraged by federal debt holdings. Default in this debt and the accounts are only backed by secondary market speculation, which has no intrinsic value. In bankruptcy, its value is zero. Debt, however (including government holdings) is backed by the ability and willingness to tax incomes, particularly those of high income households. This unwillingness by Republicans has led to the recent downgrade of its debt from AAA to AA+

[@christianchellis9057]

I’m seriously thinking about moving out of the USA, as it seems like there is far more opportunity else where with a far lower cost of living than here.

[@thelight3112]

Where do you see more opportunities? I moved back to the USA from Europe because the business potential and wages are so much higher here. The cost of living in much of Europe is lower, but you also only make 30% or less money.

[@clown3663]

The US economy is probably going to have another boom within the next 5 to 10 years. Mostly because of the demographic crisis seen across the world and the reshoring of manufacturing and really just all industry back to the states, just look at Inflation Reduction act, which is probably just the first of many to come. If anything, just compare the social, political, and economic aspects of the 1970s to 80s. But yeah, admittedly it's a pretty shitty time to be alive

[@briantbmoth6472]

Grass isn’t always greener on the other side. Good luck 🍀.

[@gokulkishore6366]

"balance of economic power is not controlled by democracies" India and Indonesia :am i a joke to you