Lest you think I have turned anti-American or something equally as vile, let me try to give you a few facts to illustrate why I don’t think the US is ever coming back as the richest and most powerful nation on earth … global recession 0r no global recession. Since World War II we Americans have ambled along, secure in the knowledge that when the last dollar goes down on the table, we are going to be supreme. Is that still so? Well, maybe not so much.
Some terms and figures to reflect on:
Gross Domestic Product (GDP). The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
GDP per Capita: An approximation of the value of goods produced per person in the country, equal to the country’s GDP divided by the total number of people in the country.
US Population: 308,551,305
China Population: 1,319,175,337 (that’s more than 4.27 times the size of the US population)
Approximate 2009 US GDP Growth: 2%
Approximate 2009 Chinese GDP Growth: 10%
China is already the world’s third largest economy (after the US and Japan) and based on final 2009 Japanese figures, not yet released) may well already be the second largest, eclipsing Japan.
I’m sure that somewhere back in your education you learned about the “Rule of 72”. Simply stated, you divide the percentage into 72 and that will give you the number of years to double the initial amount.
Let’s see now, 72/2 equals only about 36 years! for the US GDP to double.
China’s is likely to double in 72/10, or 7.2 years. One fifth the time, or five times as fast as the US.
So tell, me, as you sit in your Chinese manufactured chair and read this on your Chinese-built LCD screen, when do you still see the US catching up?
This is not a temporary situation caused by mismanagement of the ______ political party (fill in your own scapegoat), they all got us into this.
This is a simple fact of life, mainly all about people. Numbers of people. If 1.3 billion Chinese increase their production only 5%, then evry productive person in the US has to increase their output by at leays 20%. Is one of your (realistic) New Year’s resolutions to increase your output by 20% next year?
And it’s not only China … an interesting fact from the video you are now going to watch … one that blew me away … India has more school kids in the top 25% IQ range (honors program kids) than the US has KIDS! Any wonder why you see Indian and/or Chinese family names every time you read about some huge medical brektrhrouh or new manufacturing improvement.
About 4% of US college students are in engineering courses. In China and India, roughly 40% are similarly engaged.
What are US students learning instead? Oh important, productive things like how to create goofy “mortgage derivatives” and other charades of Wall Street that produce nothing except pain for the people who got sucked into them and lost their pensions.
speaking of pensions, for those, like me,who were lucky enough to get on the gravy train of modest government pensions. How much did you pension or your Social security go up this year. Yep, nothing.
The US is no longer the leader of the world the way it was when we grew up. Those of us, young or old, who are smart enough to realize that this situation is not “temporary”, but is now the way of the world,will be in the best position to keep oor heads above water.
Those who want to stay in the denial mode? I wish you well.
Watch the video, it’s fascinating … especially if you are in the “industry” of selling “education”, and ponder awhile on how you are really going to provide an actual product in the future.