Understanding Globalization Economics With One Chart

[DrSchadenfreude]

I saw this chart at Kevin Drum's website today-- 30-year GDP growth rates per nation/per capita around the world.

Interesting data about low cost labor markets and GDP growth by nation in the era of globalization.

I'm surprised to see that Mexico's GDP growth rate is so low-- given the outsourcing of U.S. manufacturing jobs to Mexico.

Notice the low growth rates for the wealthiest countries-- the U.S., Japan, and the EU.

[Walter]

None of that is surprising.
If you have 10 and increase it by 1, it's a 10% increase.
If you have 5 and increase it by 1, it's a 20% increase.

What you are seeing is undeveloped countries starting to develop, principally China and India, both of whom have massive populations to draw from.
It has little to do with already developed countries.

[daleko]

Sept 26, 2023 13:01:46 GMT -5 DrSchadenfreude said:

I saw this chart at Kevin Drum's website today-- 30-year GDP growth rates per nation/per capita around the world.

Interesting data about low cost labor markets and GDP growth by nation in the era of globalization.

I'm surprised to see that Mexico's GDP growth rate is so low-- given the outsourcing of U.S. manufacturing jobs to Mexico.

Notice the low growth rates for the wealthiest countries-- the U.S., Japan, and the EU.

Your charts don't reflect China today. They have significant and meaningful problems, which I detailed in another post. Both political and economic. Look what I posted. It's an area of knowledge and a country of interest I have experience with and in. Walt mentioned how little validity %s especially 30yr % have in a fast changing economic and political environment, along w what they mean w disparate sized economies. And Kevin Drum, the journalist and Radio Shack store manager, is not someone whose opinion I would value. But you will value what you must.

[Walter]

Sept 26, 2023 13:59:29 GMT -5 daleko said:

Sept 26, 2023 13:01:46 GMT -5 DrSchadenfreude said:

I saw this chart at Kevin Drum's website today-- 30-year GDP growth rates per nation/per capita around the world.

Interesting data about low cost labor markets and GDP growth by nation in the era of globalization.

I'm surprised to see that Mexico's GDP growth rate is so low-- given the outsourcing of U.S. manufacturing jobs to Mexico.

Notice the low growth rates for the wealthiest countries-- the U.S., Japan, and the EU.

Your charts don't reflect China today. They have significant and meaningful problems, which I detailed in another post. Both political and economic. Look what I posted. It's an area of knowledge and a country of interest I have experience with and in. Walt mentioned how little validity %s especially 30yr % have in a fast changing economic and political environment, along w what they mean w disparate sized economies. And Kevin Drum, the journalist and Radio Shack store manager, is not someone whose opinion I would value. But you will value what you must.

I am stunned at all the problems China is having. They sailed through the early part of the century like a well-oiled machine, and as if it was the end of the first half of the Super Bowl, the Beijing Olympics can be seen as the Super Bowl halftime show; signifying the high point of their economic development. It's been almost all downhill since then.

[daleko]

Sept 26, 2023 14:52:11 GMT -5 Walter said:

Sept 26, 2023 13:59:29 GMT -5 daleko said:

Your charts don't reflect China today. They have significant and meaningful problems, which I detailed in another post. Both political and economic. Look what I posted. It's an area of knowledge and a country of interest I have experience with and in. Walt mentioned how little validity %s especially 30yr % have in a fast changing economic and political environment, along w what they mean w disparate sized economies. And Kevin Drum, the journalist and Radio Shack store manager, is not someone whose opinion I would value. But you will value what you must.

I am stunned at all the problems China is having. They sailed through the early part of the century like a well-oiled machine, and as if it was the end of the first half of the Super Bowl, the Beijing Olympics can be seen as the Super Bowl halftime show; signifying the high point of their economic development. It's been almost all downhill since then.

Off subject a bit. And I may post a thread that involves what we talked about re insitu help by the .gov. It's an idea that combines .gov and private industry that makes it profitable to help the world's poor involving health and nutrition. Pretty interesting, imo. It was an article in Foreign Affairs I stumbled across this morning. Though it doesn't really impact the social situations in C & S America, it could help around the world. The other point it made was how little we spend on in-situ aide. Something like .2%. I thought it was a lot more. Closer to .7%.

Off course, being a caveman, I sometimes think the answer is to break every rule and just physically clean up aisle 4, 6 and 10. With a big hammer if necessary. Ya I know but when you're a hammer everything looks like a nail.

[DrSchadenfreude]

I wonder if Mexico's surprisingly low GDP growth rate in the NAFTA era is mainly a result of the break down of the rule of law caused by the rise of the drug cartels-- which has been especially severe in northern Mexican states closest to the U.S. border-- Nuevo Leon, Coahuila, Sinaloa, and Chihuahua.

Also, regarding Walt's comment-- perhaps Walter doesn't know that China is now the world's second largest economy, after the U.S.