Quote:
Originally Posted by ADL Colin
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.
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A friend of mine hosted an exchange student from China this year. She is a bright, nice kid and is a senior in high school ( or their equivalent to high school.) She was talking about the competition to get into colleges over there and how intense it is. College is paid for by the government, but there is still a lot of competition to get into schools. She is going to study to be an accountant and she had good enough grades to get into a top school. She said that for almost all kids going to college isn't an idea, it is almost considered a requirement. Most kids just consider college an extension of high school and something they must do. There is very few kids that are considering not going to college and just getting a job.
With attitudes like that I think China will make pretty swift moves in many technology industries and they will industrialize pretty quickly. I don't know how long it will take them, but I agree with you when you say they will eventually become the largest economy on the planet. With all those people just the sheer numbers will eventually take them there.