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It is my hypothesis that from a mini-macro view, a nation such as the US, Russia, China, or even Iceland can have a socialistic economy, but that on the world view, only an absolutely a macro-free-trade economy can exist worldwide between nations and their respective productivity/consumption. Anyone able to explain why I am right, or why I am wrong? No gut reactions here please. Think before you react.
Yes, trade can exist, but what nation (buyer) will buy a product from another nation (seller) that the buyer doesn't want or need. What nation can sell a product for a greater price than the buyer nation will pay?
At Davo's Russia and China are bartering oil to get around using the US dollar, both are working together to dethrone the US. Those countries produced and the US consumed that keep the world going for a long time to bad it's coming to an end.
It is my hypothesis that from a mini-macro view, a nation such as the US, Russia, China, or even Iceland can have a socialistic economy, but that on the world view, only an absolutely a macro-free-trade economy can exist worldwide between nations and their respective productivity/consumption. Anyone able to explain why I am right, or why I am wrong? No gut reactions here please. Think before you react.
Maybe this will help me understand;
It is my hypothesis that a nation such as the US, Russia, China, can have a socialistic economy. Free can exist worldwide between nations. Anyone able to explain why I am right, or why I am wrong?
Nope that didn't help.
So can I ask, what the hell are you talking about?
So what are some of the reasons why these nations have such high outstanding debts, even to the point where it may dwarf its GDP in comparison? Typically, in what are considered to be established capitalist economies, interest rates are kept low on purpose in order to encourage entrepreneurship and to promote the growth of businesses and spending. The idea is that those who contribute to the growth of the economy would make up for those who do not, and those who do not contribute positively to the economy would at least spend money in it. Remember Reaganomics and the “Trickle-Down” mantra?
The United Kingdom is an interesting economy in particular because its aggregate consumer debt alone ($2660 US Billion) is roughly equal to the nation’s total GDP. In this sense, the UK is just like your friend that spends exactly what they make, or even beyond their means to try and impress his/her friends. This is worse than living month to month – it’s like living a month to two months behind! And now, the UK is accumulating new debt at a faster rate than the economy. If the UK were a private citizen, it might be time for him/her to sell off what they can and move to Panama, or declare some type of bankruptcy.
So what are the causes of the high debt-to-income ratios in Europe? Expensive labor. Expensive exports. Expensive currency. Small population. High levels of taxation and large social welfare systems. On the international front, European nations are having a difficult time competing with an increasingly devalued dollar (and consequently the Chinese Yuan and The Japanese Yen), and domestically, these nations are taking care of their citizens to a point that would make any red-blooded Texas Republican cringe. And of course, the wealthy classes in these countries are so heavily taxed that money is being pumped back into the country’s extensive social programs that, perhaps counter-intuitively, can affect the economy negatively.
It is my hypothesis that from a mini-macro view, a nation such as the US, Russia, China, or even Iceland can have a socialistic economy, but that on the world view, only an absolutely a macro-free-trade economy can exist worldwide between nations and their respective productivity/consumption. Anyone able to explain why I am right, or why I am wrong? No gut reactions here please. Think before you react.
I agree with you to an extent. The UN, with its proposed global taxes, is attemtping to change that. Well, actually, there are numerous global tentacles that are trying to interlink all of us.
The day you see the United States meeting with European superpowers to attempt to balance global rates of taxation is the day it's time to overthrow the government. As it exists now, the US is able to attract a lot of immigrants from overseas attempting to flea ridiculously burdensome tax structures. However, with all this increased spending we've been having, I don't see how taxes aren't going to have to shoot through the roof, as well.
Anyway, yes, for now trade is nearly purely free market. Whoever can produce at the cheapest price with the best quality will win. There is some politicization involved, of course, and other practical concerns enter the equation (needing, for instance, a variety of trading partners less local volatility enter the market and cause problems).
In socialist countries the rich get richer and the poor get poorer.
That's been happening in the US for some time now too since the US has become more socialist.
The great thing about a free trade/market society is anybody with a good idea and some hard work can go from rags to riches. Anybody can move up the economic ladder. Anybody can start a business. Etc.
You don't have that in a socialist country.
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