Saturday, February 9, 2013

Why Does the USA Still Grow ?

Why Does the USA Still Grow ?

Comparing the USA to JAPAN or Europe, especially Spain, Italy etc. you can see why the USA still can grow economically: the USA has a psychological culture of being naive (customs and behaviors radically different from the very conservative, boring, "wise" (and therefore dead and boring and not willing to change jobs and move around and risk and such, not willing to believe in the possibility to make it and being successful psychological language of Europe and JAPAN) customs, culture and behavior of Europe and JAPAN (and most of the rest of the world outside of the USA)), of believing in fairy tales, of risking, of the possibility to change jobs and become a boss and such.

The USA are more simple minded (more simple action and reaction without "deep thought" or contemplating forever the risks and such, more impulsive, etc. willing to fight and risk and confront each other) they are willing to play the game, they are willing to move to another state (being that the USA is a monolithic standardized country where the entire country speaks the same psychological language (make or break it, work yourself up, try to improve, "you can always change jobs", and this explains the corollary effect of "hard work" of wanting to work hard so you can make it, of the impossibility of being in the middle, it is either up or out, up or down, and being that many in the USA are simple minded, naive, believe in the fairy tale, they are willing to change jobs and work hard (or at least create the appearance of working hard by talking alot, connections, making connections, having loads of meetings and staying many more hours than 8 at the job and such))). This belief in the fairy tale of being successful may be mostly false statistically, but it works to still create some economic growth in the USA, the most developed country of the "developed countries" in the world, bar none.

Compare this to Europe or JAPAN: these places are old, conservative, "wise", they don't believe in the fairy tales of "making it", in Europe you can't even go to the next town without them noticing that you are from "outside", they are old and conservative, in a sense, not risk taking, they accept the Status Quo, if you lose your job, you are finished, in JAPAN either you abide forever to your lifelong prisoner of a job or you kill yourself, in Italy if people lose their jobs they kill themselves (let alone going to another European country, where not only completely different psychological languages are spoken and completely different customs and behaviors are present, but they speak completely different languages and such like the difference between Spain, Italy on one hand and Germany on the other).

So the USA played the game of hiking up the prices of real estate, so who cares, it is over now, the prices went down, the market is moving again, things change: in Spain the played the same game, but the prices can't move down, nothing happens, same in the UK the prices are ever higher, no help on this side, prices in the rest of the world go up and stay up forever, no market forces working here like they work in the USA (they should introduce serious property taxes on homes like they do in the USA, but don't worry they all suck too much to want to do this, old hags), Spain only played that one game, lost, and now is frozen in that situation until they starve to death, in Italy it is even worse, they didn't even notice that they played the same game, the prices of homes went higher there than any place else in the world compared to their puny salaries, but no one notices it, incredible, they all worship stiff home prices ever higher to protect the Status Quo, to protect those who have against the minority of those who will never have (the new generation in these countries are all hosed for good). Same story in JAPAN, home prices and rents are and will always be high, nothing can ever change, the jobs are prisons, the young don't want to work in such crap holes where you have to stay until your boss goes home (until 10 o'clock) to respect the "powers that be", to respect an old fashioned, stone age mentality of status, inequality, nothing worth anything and such.

And they wonder why they don't "Grow Economically" and such: like the freer labor laws they introduced in Italy (or Spain and Greece), this just created an even more static and rigid labor market, this created an even higher structural rigidity, since as soon as anything changes, the idea is always on how to hose someone, how to rip off someone, and the looser labor laws allowed the bosses to punish and pay ever less workers in Italy, reflects an insecure society and culture, an insecure and static system, labor laws have nothing to do with growth, these laws created and even worse situation because the culture of the country (and same goes for France or Spain, etc.) is old static, insecure, afraid, wanting to protect what they have, not wanting to play the game, not wanting to risk nor wanting to hire and fire (but in the sense that it is done in the USA, as you can always change jobs for the better, but it works both ways in the USA, both workers and employers have more freedom, in JAPAN and Southern Europe, workers are prisoners of the only chance job they are lucky to land, hence very vulnerable and insecure, hence creating a psychological culture of fear, no risk taking, a dead and static culture and environment that only protects the Status Quo and the Stiff and High Home prices culture and customs and behaviors and as soon as someone has any power, they express it violently by trying to grab as much away as possible from anyone else, hence the reason why all labor laws in Italy or Spain or mostly anywhere else will always fail miserably, it is all based on cultures, ways of beings a society has and such): they do not have the same culture of the USA, and this was supposed to open the market and make it grow and such: but they don't understand that the labor laws have nothing to do with growth, it is all a question of the culture and way of beings of societies.

I explained why most of the rest of the world is way poorer than the USA, the USA is the only country that has really truly developed according to the Standard Economic Model of Growth (actually this model was invented in and for the USA (as the very concept of GDP) and then exported to the whole world as the only possible model and such) and such, wide roads, highways, huge malls, large homes, consumerism, hire and fire, simple minded as to easily buy new things (and to buy into new things, new behaviors, new activities like going on and inventing Facebook), try new things, always change, always believing in fairy tales, way more impulsive and less "intellectual" or "wise" or "cultured" (as culture is a drain and a brake on economic activity and growth and consumerism and always change and hire and fire) easily excited (even at 70 years old, not like in France and JAPAN and Italy where you are already defeated and dead and ready to give up at 20 years old and such) and change and hence some economic growth is always chugging along and such (and actually it also explains why foreigners have so much success in the USA, they are really more clever and wiser and used to much more rigid systems, when they go to the USA, it is all way simpler and easier for them, they don't have all the chains keeping them in place as they do in the "old countries" the "cultured countries" and such (but they can hose that culture of theirs, it will keep them poorer and poorer)).

The USA grew 2 % in 2012, that would be a miracle in JAPAN or Italy or Spain: but really, these places will never change, you can't change a culture and customs and behaviors of a society, it is very hard if not impossible for them to change, especially since these places are getting old, they are older and older, weaker and weaker, they don't have a chance anymore, Europe, the UK, France JAPAN, Italy, all old, conservative Status Quo protecting cultures that would like to grow but are over and done with: cultures take centuries to change, especially since all the high economic growth potential of the 20th century is starting to run dry, very few new inventions and technologies that can hire all the unemployed (and those few novelties are being done only in the USA, the only country that still has that real innovative and rules breaking take on things, people can take chances, can be free, can try, you can't do that in JAPAN or Italy or France and such).

So the same story goes for the new emerging economies and developing economies: you can be sure that they will stop growing in a few years, their real old, conservative, status quo protecting selves will come out, as it is already starting to emerge in China, Russia and especially India: just look at home prices, just look at how much it costs to rent or buy a home in those countries compared to their puny salaries: that says it all, that will kill all growth in those old countries in a few years no matter what, they will end up stagnating just like the UK, JAPAN and Italy, etc.

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