Quote:
Originally Posted by Sexxxy Sites
I recognize the ups and downs, but in the long run our economy continued to grow until it became the worlds largest, which is what I meant by fared well. We are still the worlds largest economy. If you agree that we are now a credit based and service based economy my question still goes unanswered. Can a credit based and service based economy survive? To add another question if it can survive can a credit based and service based economy remain as the worlds largest economy?
|
From my point of view I was answering your question. Our economy looks roughly like this:
Services 42%
Non Durable goods 21%
Government Spending 20%
Private Investment 14%
Durable Goods 7%
I dunno if calling it "service based economy" or not leads to any additional understanding.
based on the fact that roughly 42% of the economy is services does that make it "service based" when 58% of the economy is NOT services. If I had to label it i'd call it a diversified economy.
yeah I do think the US economy is diversified enough to continue to grow at a long-term average of 5 or 6% per year including inflation. As far as being the world's largest eventually China will be larger because of its population. Right now they are in the process of industrializing and urbanizing. Eventually their economy will get more sophisticated, their per capital income will grow and they will be larger than the US. 25 years? 50 years? 80 years? It really doesn't matter. They have the demographics. There is also the EU is you want to view it is one economy. whether you do or not I don't think it matters much. There's no reward for being "largest economy". The EU and US do a LOT of business together. I bought my car from Germany and am very happy with it.
As far as the US, I think you can see its diversity by looking at its largest companies. GE, Microsoft, Wal Mart, Proctor and Gamble, Pfizer, Caterpillar, Deere, Berkshire, Exxon, Chevron, Johnson and johnson, IBM, Coca Cola, Google, Cisco, Apple, Intel, Hewlett Packard, Oracle. The US is a huge diversified economy.