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Most people know that the USA economy is powered by the US consumer. In fact over 70% of the US GDP is due to consumer spending. What many do not know is that the world economy is fueled by the USA consumer. Almost 27% of the world's consumer market is because of the US consumer
While the rest of the countries make up 73% of the world's consumer market, individual countries are all below 8% of that market. China is the second largest at 7.72% of the consumer market. In other words, the world needs access to the US market.
Even if you take the entire EU as one country, it doesn't add up to the US consumer market. It's close at around 24%. If you take the USMCA we beat the EU with 31% of the consumer market. Combined the EU and USMCA make up about 55% of the consumer market in the world.
On a population basis The EU has about 513 million people, the USMCA has about 538 million. A little more than 1 billion people, about 1/7th of the world's population are responsible for 55% of consumer spending.
This is one reason why you can have the rest of the world in a near recession yet have the USA economy booming with low unemployment, good GDP growth, and wage increases. But why is there this difference between cultures of the USA and the rest of the world in consumer spending?
Well, if you listen to the left it's because we are evil, selfish, pigs that can never be satisfied and need to rape the world of its resources with our free market capitalism.🙄🙄 Of course those same people say capitalism itself is bad mojo.
However, the EU and other places practice a form of capitalism. I'm using this definition for capitalism in this thread: "an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state"
In other words, even in places that practice capitalism the American consumer is a cut above the rest of the world. They are exceptional consumers. (Definition of exceptional for the left out there : "unusual; not typical". So what makes the US consumer exceptional?
It's not just capitalism since other countries have that system and are not as big as consumers as us. So what powers this exceptional economy and why can't other countries catch up and surpass us? One would think the great untapped China or India markets would "come online"
Yet, for decades they have failed to launch. Sure, they have made economic improvements but the "promise" has never lived up to the reality. The Same could be said for country after country. It's also not just about resources since trade has enabled the buying and selling of..
...resources all around the globe. It's also not about wealth since many of these countries and their people are wealthy in their own ways. So, if it's not capitalism, resources or wealth, what powers the exceptional nature of the American consumer?
IMO it's what underlies that consumer. The American consumer is backstopped by Citizenship to an exceptional nation built on the concept of freedom. The citizen is free, the government is limited. The consumer has freedom of movement, freedom of speech, freedom of thought,
freedom to defend what is theirs, freedom of association and freedom of religion to name just a very. These freedoms allows new inventions to be dreamed, ads to be used, needs to be met, wants to be fulfilled, problems to be solved. 100's of millions of free people interacting
....yearly, monthly, weekly, daily, hourly with each other all free to make what choices they want/need to better their life. Until other countries allow their citizens to enjoy the same types of freedoms or the left/other enemies of USA are successful in limited our freedoms...
...the American citizen will remain the world's leader in consumer spending and economic activity. Most governments will never willingly give up power, once it's acquired short of revolution, so the chances of other countries giving more freedom are slim.
Therefore, the greatest chance of the left/other enemies undermining the USA economy & "catching up" to America is as always from within with more regulations, more Political Correctness, more attacks on religion, more "climate change fixes", more stupid one way trade rules, ect,
If you have watched the political battles over the last decade, it's easy to see the difference between what Obama/left and Trump did to our economy. One sought to limit the freedoms of the people, the other sought to increase the freedom. The results speak for themselves.
