₦airaland Forum

$76000 per Capita: The US is a leader because of certain truths in accordance reason making up its economic style

What is responsible for the US leading $76000 per capita?

The US has the highest per capita GDP ($76,000) of all major economies by population (exceeding 10 million inhabitants) despite having a 332 million population with perhaps lots of uninvited low-skilled immigrants.

By comparism Japan ($42,000), UK ($40,400), Germany ($54,600), France ($38,250) and Nigeria ($2,097) far considerably less. So what exactly is responsible for the US’ leading productivity?

Key Points To Learn Specially From the US Economy

1. Low or No labour unions: The US has the least proportion of employees in organised labour unions (only 12%, and much of the 12% is employed by government). This makes workers concentrated on work.

2. High emphasis on vocational training: Of the 90%+ high school graduation rates in the US, only 38% of Americans possess a Bachelor degree. Much of the rest take vocational education or pass through one to two years “career” schools and even many of its College entries once passed through career or vocational schools prior to completing their training in degree colleges. Thus the US has a high degree of vocationally trained in its $76000 per capita economy.

3. No pay checks for no work times: The US is the only major economy that does not guarantee its workers a paid vacation, paid sick days or paid family leave. Hence entrepreneurs or employers are not throttled to issue pay checks for money that might not be available, having not been made by the contracted worker. Fair, fair for both parties and for the mutual good of the system. It still manages to produce $76000 per capita because of this (pay checks for values only) and pays its workers $56,000 on median level, much more than its fellow economies (UK: $31,670; France: $22,500).

4. High emphasis on cultivating soft and interpersonal skills early on: The US outputs more than 365,000 MBAs annually into its economy, and undergraduate and upper middle school students are largely involved (many times mandatorily) in sports, public speaking and extra curricular activities for as part of its overrall studies and growing up plan. Consequently it outputs an adult workforce versatile in all necessities and has the world’s highest number of entrepreneurs and extroverted beings. full potential these are the keys that will unlock the door to personal excellence.

https://nigeriaeconomist.com/2022/06/08/key-points-to-learn-specially-from-the-us-economy/

Nice writeup, thanks for sharing

It is important to expand the scope of this discourse in order to avoid assumptions such as the one that brought us to this parlous state by the APC. All manners of nonsensical things were peddled before and tested after the APC took over in 2015, which have all turned out SPURIOUS.

The main reason is the DOLLAR! All other reasons are secondary. The US is the foremost capitalist economy, so it's natural for those capitalistic tendencies you listed. The US dollar is the world reserve currency: About $6.7 trillion is held across the world in reserve. It is backed by the US Treasuries, considered to be the safest paper assets. Also, major world commodities are traded in dollars. Oil for instance is a major natural resource that the whole of humanity depends on.

Because of these, the US prints its currency for the whole world to use without much threat of inflation due to printing of money. In return, the United States of America issues bonds (credit to fund its economy), which are subscribed with countries reserves and private sector savings across the world.

They are therefore able to raise credit cheaply and perpetually (albeit measurably). The US literally printed billions and billions of dollars and distributed to their idle workforce during COVID-19 lock-down. There is no country in the entire world that has that kind of advantage.

Attempts to copy and paste the same by the Nigerian managers with donor funds resulted in massive stealing and wicket hoarding of food that some Nigerians were supposed to eat from few days. Invariably, the US dollar's behemoth status supports production and innovations in no way any other country can attempt.

It also supports the credit system which itself supports internal consumption: internal consumption prevents the country from being taken hostage by externalities as Nigeria's economy would be subjected to. It supports independence of thoughts and risk taking. You could practically start a firm in the US to produce "your idea" with other people's money, which itself could well be pieces of paper asset. The mortgage system allows you to purchase a home as early as possible in your career and your skills are compensated adequately.

So before you open a thread and start suggesting that people earning less than $100 a month not to be paid sick leave, you better get an understanding of the background of the economies you are comparing. We have to start the advocacy in time before they come in 2023 and start using Nigerian workers as lab rats for unworkable ideas.

All the assets created incrementally in the past, both public and private, have been squandered by APC. All this happened because of poorly thought-out policies. JUST IMAGINE the so-called financial superstars and economic voodoo doctors boasting about electricity generation, infrastructure this infrastructure that without a single second thought about where the funds would come from.

porka:
It is important to expand the scope of this discourse in order to avoid assumptions such as the one that brought us to this parlous state by the APC. All manners of nonsensical things were peddled before and tested after the APC took over in 2015, which have all turned out SPURIOUS.

The main reason is the DOLLAR! All other reasons are secondary. The US is the foremost capitalist economy, so it's natural for those capitalistic tendencies you listed. The US dollar is the world reserve currency: About $6.7 trillion is held across the world in reserve. It is backed by the US Treasuries, considered to be the safest paper assets. Also, major world commodities are traded in dollars. Oil for instance is a major natural resource that the whole of humanity depends on.

Because of these, the US prints its currency for the whole world to use without much threat of inflation due to printing of money. In return, the United States of America issues bonds (credit to fund its economy), which are subscribed with countries reserves and private sector savings across the world.

They are therefore able to raise credit cheaply and perpetually (albeit measurably). The US literally printed billions and billions of dollars and distributed to their idle workforce during COVID-19 lock-down. There is no country in the entire world that has that kind of advantage.

Attempts to copy and paste the same by the Nigerian managers with donor funds resulted in massive stealing and wicket hoarding of food that some Nigerians were supposed to eat from few days. Invariably, the US dollar's behemoth status supports production and innovations in no way any other country can attempt.

It also supports the credit system which itself supports internal consumption: internal consumption prevents the country from being taken hostage by externalities as Nigeria's economy would be subjected to. It supports independence of thoughts and risk taking. You could practically start a firm in the US to produce "your idea" with other people's money, which itself could well be pieces of paper asset. The mortgage system allows you to purchase a home as early as possible in your career and your skills are compensated adequately.

So before you open a thread and start suggesting that people earning less than $100 a month not to be paid sick leave, you better get an understanding of the background of the economies you are comparing. We have to start the advocacy in time before they come in 2023 and start using Nigerian workers as lab rats for unworkable ideas.

All the assets created incrementally in the past, both public and private, have been squandered by APC. All this happened because of poorly thought-out policies. JUST IMAGINE the so-called financial superstars and economic voodoo doctors boasting about electricity generation, infrastructure this infrastructure that without a single second thought about where the funds would come from.

No you are wrong. The dollar might not ensure against inflation either. And a people's productivity is a prime cause of basic effects, not an end point of the dollar.

They stabilise the dollar (that could be a fifth point), not the other way round. One of the ways the do it is by mass printing (making it always globally available).

The dollar as global as it is could fall if the were not careful. The Euro (widely used), currently on a fall is a brief proof.



The US is highly productive due to such points above and many others. But I just wanted to keep it brief. Read it again, you might understand a thing or two more.

NigerianAngelo:
$76000 per Capita: Key Points To Learn Specially From the US Economy



https://nigeriaeconomist.com/2022/06/08/key-points-to-learn-specially-from-the-us-economy/

Some experts are self centred and only see where they're. All developing Nations need to look up to China to grow a better economy, wealth, and jobs creation and prosperity. The excess of capitalism in US like economy is a big threat to mankind, it will be a big hell in masses.
Good education especially in areas of science and Technology, food sufficiency, industrial revolution and Productivity that will lead to export will solve almost all our problem. The current exchange rate hitting us is just because we aren't productive and rely on other Nations to survive on a lot of things. Being productive won't affect us even if dollar to Naira exchange is 1:10000.

porka:
It is important to expand the scope of this discourse in order to avoid assumptions such as the one that brought us to this parlous state by the APC. All manners of nonsensical things were peddled before and tested after the APC took over in 2015, which have all turned out SPURIOUS.

The main reason is the DOLLAR! All other reasons are secondary. The US is the foremost capitalist economy, so it's natural for those capitalistic tendencies you listed. The US dollar is the world reserve currency: About $6.7 trillion is held across the world in reserve. It is backed by the US Treasuries, considered to be the safest paper assets. Also, major world commodities are traded in dollars. Oil for instance is a major natural resource that the whole of humanity depends on.

Because of these, the US prints its currency for the whole world to use without much threat of inflation due to printing of money. In return, the United States of America issues bonds (credit to fund its economy), which are subscribed with countries reserves and private sector savings across the world.

....



All the assets created incrementally in the past, both public and private, have been squandered by APC. All this happened because of poorly thought-out policies. JUST IMAGINE the so-called financial superstars and economic voodoo doctors boasting about electricity generation, infrastructure this infrastructure that without a single second thought about where the funds would come from.

My Reply:

1. Such a thing could be replicated with the Naira to a very large extent. Buhari himself has managed to borrow at least N7tr - N9tr from CBN without much (or any) effect to the economy. Nigeria could even have borrowed solely from CBN by printing money. The problem is that the didn't inject borrowed funds for productive ends (school feeding; N5000 to poor are not productive ends). And Nigeria has not had anything to export to gain foreign exchange.

Worse of all, Buhari decided to borrow externally thereby owing someone in truth. He would have to work that money and gain foreign currency (exchange) to pay his creditors.


2. But what the OP is saying is that: [i]The social structures behind the US economy, such as: 1. No pay for no work, 2. Emphasis on soft skills from childhood, 3. Emphasis on vocational paths rather than just bachelor degrees, 4. Discouragement of labour unions which could brood employer "kidnap", blackmail or worker disillusions (laziness), ((5. Sufficient pay for work- including for public offices))... are truths, backed by reason, and responsible for it's extra $10,000 to $30000 productivity edge among it's fellow developed countries, and all economies at large. It is a lesson to learn for the Nigerian and African economy.

Of course, their economy isn't perfect. But certain truths backing it are there to see and be copied.

These are the things we want to hear, not just dividing the economy of China multiplied by the Labor force of Singapore to get the GDP of Hong Kong.

But when BAT was talking about the need for a mortgage and credit facility system. The need to harness our resources like Cassava and Maize, for more productivity. The need to expand our taxes to draw more revenue from the "untouchables." The need for infrastructure, the need for PPP that will draw investors, etc., people turn it into jokes.

Owopariola001:
These are the things we want to hear, not just dividing the economy of China multiplied by the Labor force of Singapore to get the GDP of Hong Kong.

But when BAT was talking about the need for a mortgage and credit facility system. The need to harness our resources like Cassava and Maize, for more productivity. The need to expand our taxes to draw more revenue from the "untouchables." The need for infrastructure, the need for PPP that will draw investors, etc., people turn it into jokes.

BAT has no sense, And on no account will a muslim take over.

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