There's been a lot of talk on this board on the US economy over the years. But it seems that there is no consensus about what are the most important factors for GDP growth for a market dominant country like the US over time.
So, what would you say are top 3 economic factors for the US growth over the last 40 years? It can be the last 10 years or 80 years too if you think it changed a lot.
@Lundos saidAI gives this answer to "main factors that contribute to economic growth)":
There's been a lot of talk on this board on the US economy over the years. But it seems that there is no consensus about what are the most important factors for GDP growth for a market dominant country like the US over time.
So, what would you say are top 3 economic factors for the US growth over the last 40 years? It can be the last 10 years or 80 years too if you think it changed a lot.
"Several key factors drive economic growth: human capital, physical capital, technological progress, natural resources, and entrepreneurship. These elements, when combined and utilized effectively, lead to increased productivity, innovation, and overall economic expansion."
And this answer to "three factors of the us economy in the last 40 years?":
"Three significant factors shaping the US economy in the last 40 years include technological advancements, globalization, and evolving demographics. Technological innovation, particularly in computing and digital technologies, has driven productivity gains and created new industries. Globalization has led to increased international trade and investment, impacting industries, supply chains, and competition. Finally, shifts in the age structure of the population, with an aging workforce, have influenced labor supply, consumption patterns, and social security systems."
Does anyone agree with that?
@Lundos saidThey are "three factors" to be sure, but "top 3 factors"?
AI gives this answer to "main factors that contribute to economic growth)":
"Several key factors drive economic growth: human capital, physical capital, technological progress, natural resources, and entrepreneurship. These elements, when combined and utilized effectively, lead to increased productivity, innovation, and overall economic expansion."
And this answer to "th ...[text shortened]... ed labor supply, consumption patterns, and social security systems."
Does anyone agree with that?
Globalization has to be up there, as could be "aging worker population" but ranking these is probably a matter of opinion.
@Lundos saidAmerica has a very high %%% of lazy bums, who rather collect welfare than work. There are a high %% of women who want to make babies with 3 different men and collect welfare. Then there are blacks who just want reparations and their focus is on BLM to get this for them so they live off welfare. Plus there is the LGBTQ crowd who want to be some other sex so they focus on that. There is the WOKE crowd who believe that their failed life is because of whites, and ignore their own failings.
AI gives this answer to "main factors that contribute to economic growth)":
"Several key factors drive economic growth: human capital, physical capital, technological progress, natural resources, and entrepreneurship. These elements, when combined and utilized effectively, lead to increased productivity, innovation, and overall economic expansion."
And this answer to "th ...[text shortened]... ed labor supply, consumption patterns, and social security systems."
Does anyone agree with that?
None of those things produce growth and in fact impact negatively on the GDP
Capitalism and productivity = GDP growth.
Everybody on board working and producing = Success {Ask China]
@Lundos said3. Stable, predictable government policies.
There's been a lot of talk on this board on the US economy over the years. But it seems that there is no consensus about what are the most important factors for GDP growth for a market dominant country like the US over time.
So, what would you say are top 3 economic factors for the US growth over the last 40 years? It can be the last 10 years or 80 years too if you think it changed a lot.
2. Stable, predictable markets.
1. Stable, predictable income.
@Rajk999 saidAnd it just so happens to be some miracle that everyone is somehow more F'ed up than you.
America has a very high %%% of lazy bums, who rather collect welfare than work. There are a high %% of women who want to make babies with 3 different men and collect welfare. Then there are blacks who just want reparations and their focus is on BLM to get this for them so they live off welfare. Plus there is the LGBTQ crowd who want to be some other sex so they focus on tha ...[text shortened]... ism and productivity = GDP growth.
Everybody on board working and producing = Success {Ask China]
Not buying it.
1 edit
@Rajk999 saidUSA has been way above China in GDP over the last 40 years, with fewer people to boot. If you divide by per capita, China's economic output right now is less than what the USA was in 1980 (and the USA is now 6x that number).
America has a very high %%% of lazy bums, who rather collect welfare than work. There are a high %% of women who want to make babies with 3 different men and collect welfare. Then there are blacks who just want reparations and their focus is on BLM to get this for them so they live off welfare. Plus there is the LGBTQ crowd who want to be some other sex so they focus on tha ...[text shortened]... ism and productivity = GDP growth.
Everybody on board working and producing = Success {Ask China]
Your thesis is lacking.
The answer to the question is innovation. Americans are better at it (and better at funding R&D) than anyone else.
@wildgrass saidAre we talking about growth or static GDP? China's GDP grows on avg at about 9% per year for the last 20 years. The US in the same is about 2%. What do you think is going to happen? In any case comparting GDP between countries that have vastly different economies and cultures is not useful, as it does not reflect efficiency or productivity, neither can it take into consideration the underground or unmeasured production with is far greater in China. Exchange rate distortions and fluctuations is another issue.
USA has been way above China in GDP over the last 40 years, with fewer people to boot. If you divide by per capita, China's economic output right now is less than what the USA was in 1980 (and the USA is now 6x that number).
Your thesis is lacking.
The answer to the question is innovation. Americans are better at it (and better at funding R&D) than anyone else.
You would find that GDP is a useful comparison between countries of similar background like say Europe or South America. IF you want to use some other methods to compare growth I will be happy to contribute. Here are some examples from DeepSeek:
1. Gross National Income (GNI)
Measures total income earned by a country’s residents (including overseas earnings), not just domestic production (GDP). Useful for countries with large foreign investments or remittances (e.g., Ireland, Philippines).
2. Purchasing Power Parity (PPP) Adjusted GDP
Adjusts GDP for cost of living differences, giving a better sense of real economic size and living standards. Example: China’s GDP (PPP) is larger than the US’s, but nominal GDP isn’t.
3. GDP per Capita
GDP divided by population—shows average economic well-being. Reveals disparities (e.g., Luxembourg vs. India, despite similar aggregate GDP rankings).
4. Human Development Index (HDI)
Combines GDP per capita, life expectancy, and education (literacy/schooling). Used by the UN to assess quality of life (e.g., Norway ranks high despite smaller GDP than the US).
5. Genuine Progress Indicator (GPI)
Adjusts GDP for income inequality, environmental damage, and unpaid work (e.g., caregiving). Some US states (e.g., Maryland) use GPI alongside GDP.
6. Inequality Measures (Gini Coefficient, Palma Ratio)
Gini Coefficient: 0 = perfect equality, 1 = maximum inequality. High GDP growth with rising inequality (e.g., China, US) may not benefit most citizens.
7. Employment & Labor Metrics
Unemployment rate (but can hide underemployment). Labor force participation rate (how many are working or seeking work). Wage growth (real wages adjusted for inflation).
8. Productivity Growth
Output per worker/hour – Indicates efficiency and innovation. The US leads in productivity, while China’s growth has relied more on labor/capital inputs.
@Rajk999 saidI believe it was you who initially compared the two economies and argued that the difference was cultural, not political.
Are we talking about growth or static GDP? China's GDP grows on avg at about 9% per year for the last 20 years. The US in the same is about 2%. What do you think is going to happen? In any case comparting GDP between countries that have vastly different economies and cultures is not useful, as it does not reflect efficiency or productivity, neither can it take into conside ...[text shortened]... on. The US leads in productivity, while China’s growth has relied more on labor/capital inputs.[/i]
Anyways, if you adjust for cost of living you have a point. But the USA is still more productive. Your culture war rationale to belittle the American workforce is wrong.
@wildgrass saidActually I did not do any comparison. You might want to reread my post.
I believe it was you who initially compared the two economies and argued that the difference was cultural, not political.
Anyways, if you adjust for cost of living you have a point. But the USA is still more productive. Your culture war rationale to belittle the American workforce is wrong.
Lets recap a bit. The issue raised in the OP is economic growth. You contend that the key is innovation, and that Americans are better at it. Thats fine no argument there. America is among the top 5 in the world in innovation, R&D and tech development.
Still China's growth rate is about 4 times the US.
If innovation is the key to growth, and China consistently has much high pa growth rates than the US, then clearly China is better at innovation, or there is something in China which the US is lacking.
@Rajk999 saidchina doesnt innovate...they steal
Actually I did not do any comparison. You might want to reread my post.
Lets recap a bit. The issue raised in the OP is economic growth. You contend that the key is innovation, and that Americans are better at it. Thats fine no argument there. America is among the top 5 in the world in innovation, R&D and tech development.
Still China's growth rate is about 4 times ...[text shortened]... then clearly China is better at innovation, or there is something in China which the US is lacking.
@Mott-The-Hoople saidFor sure in the earlier days, that was rampant, but now with a growth rate about 4 times the US, all of that cannot attributable to unfair business practices.
china doesnt innovate...they steal