Hello...
More of my philosophy about cost of living in USA and in the world and
more..
I am a white arab from Morocco, and i think i am smart since i have also invented many scalable algorithms and algorithms..
I have just looked quickly at the video of the following white american
women, i invite you to look at it:
https://www.youtube.com/watch?v=DO5x_tJBn7w
I think that this white american women in not thinking correctly, since
i think she is not educated correctly, since for example she is saying
that the cost of living in USA is high, but i think it is not objective
and it is not correct, since the cost living depends on factors such as
the diversification of economy and on productivity, for example in third
world countries the economy is much less diversified, so this can be not
good for cost of living, and here is what i just said about it so that
to make you notice it:
Read the following paper so that to notice how important is
diversification of economy:
Economic Diversification in Africa: How and Why It Matters
https://carnegieendowment.org/2021/04/30/economic-diversification-in-africa-how-and-why-it-matters-pub-84429
More of my philosophy about economy and about Morocco and Algeria and more..
So as you are noticing i was speaking, read below, about Algeria,
and you have quickly noticed that the Algerian economic problem comes
from the fact that Algeria is a much less diversified economy than Dubai
or than my country Morocco, so i think that Morocco is a much more
diversified economy and i think that Morocco is really on the
right path and Morocco is also a beautiful country, since read in the
following article of year 2019, it says that the 2019 International
Franchise Attractiveness Index ranked Morocco 39 out of 131 states. This
made it the number 1 attractive business hub for US-based franchises in
Africa and the second in the Middle East and North Africa (MENA) after
the United Arab Emirates. This ranking shows it competing with some
leading international powers, including France, Spain, Germany and
Australia, according to a report by Morocco World News. The index
combines peer-reviewed research and a survey of franchise executives to
produce two rankings, balanced growth and aggressive growth.
Read more here so that to notice it:
https://www.fairobserver.com/region/middle_east_north_africa/morocco-maghreb-maroc-moroccan-economy-latest-world-news-796983/
More of my philosophy about economy and inflation and more..
I invite you to read the following about how do Governments Reduce
Inflation:
https://www.investopedia.com/ask/answers/111314/what-methods-can-government-use-control-inflation.asp
I think that one of the best way to reduce inflation is by reducing the
money supply within an economy via decreased bond prices and increased
interest rates, and the above web page is speaking about it, but i think
that there is still a problem, since inflation can become problematic if
the product or service become a monopoly, so if the prices of the
product or service can not be reduced by for example economies of scale
or/and by "competition", so the price of the product or service can be
set high and it is inflation on this product or service, so this kind of situation can also lead to an economic war, also inflation still can
become a problem like with the drastic fall of the algerian currency
called Dinar in Algeria, since Algeria is lacking on diversification of
its economy and also was unable to reduce its reliance on food imports,
since 70% of the Algeria food requirements are met by imports, so with
the drastic fall of the algerian Dinar currency, the price of Food in
Algeria was getting high, and the people of Algeria were suffering
because of that, and this situation can still repeat itself again and
again in Algeria.
Read about it here:
https://www.middleeasteye.net/news/algeria-dinar-record-low-economic-collapse
And here is some measures that i think will diversify much more the
economies of arab countries:
1- You have to boost innovation through greater investment in knowledge-
based capital.
2- And you have to strengthen R&D spending.
3- And you have to have stronger links between research institutions
and the private sector.
4- And you can make regulation in services sectors more competition-
friendly
5- And you have to enhance incentives to entrepreneurship.
6- And you have to strengthen the education system.
And here is the other factor that is productivity that affects cost
of living, read my following thoughts to understand:
And read more the following article about the cost of living::
Comparison of worldwide cost of living
https://www.worlddata.info/cost-of-living.php
So as you are noticing that we have also to compare the cost of living
between western countries, so i think that USA cost of living is not
so bad compared to western countries, it is at the same cost of living
as Canada and it is at around the cost of living of France, also you
have to technically know that cost of living depend on the productivity
factor, since in rich countries, manufacturing is highly productive,
allowing firms to pay high wages and still charge internationally
competitive prices. Those high wages also drive up pay in services,
which must compete for workers. Since productivity is low in services,
high pay translates into high prices, pushing up the overall cost of living.
Read more here so that to notice it:
https://www.economist.com/middle-east-and-africa/2018/03/15/why-africas-poor-pay-high-prices
More of my philosophy about USA and more..
I think i am smart, and i say that USA economy is in good shape,
since first the Financial institutions of USA are generally less
vulnerable today than they were before the crisis, with stronger capital
and liquidity buffers and a reduced reliance, and in most developed
nations banking systems appear reasonably solid, read my thoughts below
so that to notice it, also read my following thoughts
about the USA economy so that to notice it:
More of my philosophy about Geopolitics and about USA and more..
So read the following:
"In 2019, exports of goods and services from the United States made up
about 11.73 percent of its gross domestic product (GDP). This is an
increase from 9.23 percent of the GDP of the United States in 1990.
Jun. 29, 2021"
So as you are noticing that the exports of USA are around 12% of GDP in
2021, and it is a standardized number, so if you say that the problem of
USA is that it has to know how to protect its goods and services, i mean
that USA has to know how to protect this 88% of goods and services by
knowing how to be a smart "protectionism", i think that
it is not the good way and here is what i say about it:
More philosophy about protectionism and USA and more..
I think we have to be careful about protectionism, since read the following:
"Protectionist policies impose an additional cost and loss on all
parties. First of all, domestic consumers must pay a higher price for
goods. At the same time, importers face a decline in demand, so
international jobs are lost. For instance, the US-China trade war meant
that US consumers paid a higher price whilst demand for Chinese workers
is reduced.
So the Chinese unemployment increases and US consumers pay more.
However, the counter-argument is that it saves US jobs and businesses.
Now there is some validity to that claim. If the money sent to China
doesn’t come back in either demand for US goods, or FDI, then the
argument can be validated.
However, the reality of the situation is that when a US consumer buys
cheaper Chinese goods, that money goes to a Chinese exporter. That money doesn’t stay with them indefinitely. It makes its way back to the US
through either demand for its goods or in FDI.
What we see as a result is that Chinese demand drives employment in
other industries. So jobs that may have been lost in one industry, are
being created in another. At the same time, the FDI inflows also create employment in the relevant industry.
Although there is disruption, there is a net positive gain in the long
term. Employees will have to shift to new industries, but the average
consumer benefits from lower prices. By contrast, the only winner under protectionism is specific domestic workers. However, they too are
consumers and consequently lose out too.
Is Protectionism Good For The Economy?
In the long-run, protectionism is not good for the economy. It makes
consumers and businesses pay more. And whilst it may protect jobs in the short-term, the economy as a whole would be better served in allowing
cheaper imports in. Although this may temporarily destroy some jobs,
consumers benefit from lower prices. In turn, the income that would have
been spent on the goods before can now be spent in other markets. In
turn, employment is stimulated elsewhere in the economy."
Read more here:
https://boycewire.com/protectionism-definition-and-types/
So what is the smart way of doing so that to not be protectionism?
Here it is:
First I think that protectionism is not good, and i think that Trade
Adjustment Assistance etc. is a better way of solving problems, so
i invite you to read the following article to know more:
https://theconversation.com/international-trade-has-cost-americans-millions-of-jobs-investing-in-communities-might-offset-those-losses-143406
And read more here about Trade Adjustment Assistance:
https://en.wikipedia.org/wiki/Trade_Adjustment_Assistance
And notice that i think that USA is economically in a good shape, since
read my following thoughts so that to notice it
And about the US Debt Crisis, i think it is not so problematic, since
USA economy is well diversified and powerful economy that is really
resilient, and you can read more about it here in the following article:
The Surprising Truth About the US Debt Crisis
https://www.thebalance.com/us-debt-crisis-summary-timeline-and-solutions-3306288
Also I think that USA will still be a super power in the future, and i
say that we can not compare USA to China, since China has many defects
like the "productivity" of China is not good both qualitatively and quantitatively, and China has a debt problem, so China is constrained by
this factor of its debt problem, so China can not attain the level of productivity both quantitatively and qualitatively of that of USA in
the near to medium future. But the productivity of USA is good both qualitatively and quantitatively, and China has other problems such as
the quality of education of its workforce is much less than that of USA,
this is why China is also lacking much in productivity both
qualitatively and quantitatively. And you can look at the following
video so that to understand more:
Why won't China Surpass the United States? - VisualPolitik EN
https://www.youtube.com/watch?v=ZqowS-hlZ3M
Also as I have just explained above, that Donald Trump protectionism
is not good, and i think that Donald Trump was not thinking correctly,
since around 85% of jobs losses in the manufacturing sector in USA was
caused by automation and not by China or such as were thinking it the
people who elected Donald Trump, and you can look at the following video
that make you understand that automation also has advantages:
https://www.youtube.com/watch?v=D-rd3kW7Bc8
Following are some of the advantages of automation:
1. Automation is the key to the shorter workweek. Automation will allow
the average number of working hours per week to continue to decline,
thereby allowing greater leisure hours and a higher quality life.
2. Automation brings safer working conditions for the worker. Since
there is less direct physical participation by the worker in the
production process, there is less chance of personal injury to the worker.
3. Automated production results in lower prices and better products. It
has been estimated that the cost to machine one unit of product by
conventional general-purpose machine tools requiring human operators may
be 100 times the cost of manufacturing the same unit using automated mass-production techniques. The electronics industry offers many
examples of improvements in manufacturing technology that have
significantly reduced costs while increasing product value (e.g., colour
TV sets, stereo equipment, calculators, and computers).
4. The growth of the automation industry will itself provide employment opportunities. This has been especially true in the computer industry,
as the companies in this industry have grown (IBM, Digital Equipment
Corp., Honeywell, etc.), new jobs have been created.
These new jobs include not only workers directly employed by these
companies, but also computer programmers, systems engineers, and other
needed to use and operate the computers.
5. Automation is the only means of increasing standard of living. Only
through productivity increases brought about by new automated methods of production, it is possible to advance standard of living. Granting wage increases without a commensurate increase in productivity
will results in inflation. To afford a better society, it is a must to
increase productivity.
And the education system of USA is not so bad as we can think and you
can read about it here:
America's Not-So-Broken Education System
Read more here:
https://www.theatlantic.com/education/archive/2016/06/everything-in-american-education-is-broken/488189/
Also Let's look for example at USA, so read the following from Jonathan
Wai that is a Ph.D., it says:
"Heiner Rindermann and James Thompson uncovered that the “smart
fraction” of a country is quite influential in impacting the performance
of that country, for example, its GDP."
And it also says the following:
"“According to recent population estimates, there are about eight
Chinese and Indians for every American in the top 1 percent in brains.”
But consider that the U.S. benefits from the smart fractions of every
other country in the world because it continues to serve as a magnet for brainpower, something that is not even factored into these rankings.
What these rankings clearly show is America is likely still in the lead
in terms of brainpower. And this is despite the fact federal funding for educating our smart fraction is currently zero. Everyone seems worried Americans are falling behind, but this is because everyone is focusing
on average and below average people. Maybe it’s time we started taking a closer look at the smartest people of our own country."
Read more here:
https://www.psychologytoday.com/us/blog/finding-the-next-einstein/201312/whats-the-smartest-country-in-the-world
So as you are noticing it's immigrants(and there are about eight Chinese
and Indians for every American in the top 1 percent in brains) that are
making USA a rich country.
And read also the following to understand more:
Why Silicon Valley Wouldn’t Work Without Immigrants
There are many theories for why immigrants find so much success in tech.
Many American-born tech workers point out that there is no shortage of American-born employees to fill the roles at many tech companies.
Researchers have found that more than enough students graduate from
American colleges to fill available tech jobs. Critics of the industry’s friendliness toward immigrants say it comes down to money — that
technology companies take advantage of visa programs, like the H-1B
system, to get foreign workers at lower prices than they would pay American-born ones.
But if that criticism rings true in some parts of the tech industry, it
misses the picture among Silicon Valley’s top companies. One common misperception of Silicon Valley is that it operates like a factory; in
that view, tech companies can hire just about anyone from anywhere in
the world to fill a particular role.
But today’s most ambitious tech companies are not like factories.
They’re more like athletic teams. They’re looking for the LeBrons and Bradys — the best people in the world to come up with some brand-new, never-before-seen widget, to completely reimagine what widgets should do
in the first place.
“It’s not about adding tens or hundreds of thousands of people into manufacturing plants,” said Aaron Levie, the co-founder and chief
executive of the cloud-storage company Box. “It’s about the couple ideas that are going to be invented that are going to change everything.”
Why do tech honchos believe that immigrants are better at coming up with
those inventions? It’s partly a numbers thing. As the tech venture
capitalist Paul Graham has pointed out, the United States has only 5
percent of the world’s population; it stands to reason that most of the world’s best new ideas will be thought up by people who weren’t born here.
If you look at some of the most consequential ideas in tech, you find an unusual number that were developed by immigrants. For instance, Google’s entire advertising business — that is, the basis for the vast majority
of its revenues and profits, the engine that allows it to hire thousands
of people in the United States — was created by three immigrants: Salar Kamangar and Omid Kordestani, who came to the United States from Iran,
and Eric Veach, from Canada.
But it’s not just a numbers thing. Another reason immigrants do so well
in tech is that people from outside bring new perspectives that lead to
new ideas.
Read more here:
https://www.nytimes.com/2017/02/08/technology/personaltech/why-silicon-valley-wouldnt-work-without-immigrants.html
More of my philosophy about the banking system and more...
Banks are highly leveraged institutions, financed in part by interbank
credits and, hence, prone to crises of confidence that can quickly
spread. In most developed nations banking systems appear reasonably
solid. Japan has been somewhat of an exception, but there have been some positive signs there, as well. Banks have been recognizing losses, and
the government seems finally to be appropriately addressing their
problems. And in a large number of emerging nations banks are in poor
shape. Lax lending has created a high incidence of non performing loans, supported by inadequate capital, leaving banks vulnerable to declines in collateral values and nonperformance by borrowers. So as i said
below that Financial institutions in most of the developed countries are generally less vulnerable today than they were before the crisis, with
stronger capital and liquidity buffers and a reduced reliance.
Read the following article so that to understand more:
The Weakest Links In The Chain
https://www.business-standard.com/article/specials/the-weakest-links-in-the-chain-197120901001_1.html
More of my philosophy about stability of the financial sector and more..
I think from the following report that Financial institutions in most of
the developed countries are generally less vulnerable today than they
were before the crisis, with stronger capital and liquidity buffers and
a reduced reliance, read more here to notice it:
Potential Emerging Threats to U.S. Financial Stability
https://www.treasury.gov/initiatives/fsoc/Documents/Potential%20Emerging%20Threats%20to%20U.S.%20Financial%20Stability.pdf
And read my previous thoughts so that to understand more:
More of my philosophy about the financial sector and more..
I invite you to read the following interesting paper from the Journal of Economic Perspectives, that i have just read carefully, about "The
Growth of Finance" by Robin Greenwood and David Scharfstein:
https://www.hbs.edu/ris/Publication%20Files/Growth%20of%20Finance_6ec86a21-8e68-4abc-bb09-45abaacd7be5.pdf
I think i am smart, and i say that i think there is a problem
with the financial sector and it is that in the first theoretical implementation of the financial sector was that a primary function of
the financial sector is to dampen the effects of risk by reallocating it efficiently to parties that can bear risks the most easily (read about
it on the paper of Merton and Bodie 1995), but there was some practical constraints in the reality and it was about the benefits of expanding
access to mortgage credit, there are a number of societal costs from
such an expansion, including instability from excessive household
leverage. Moreover, the shadow banking system that facilitated this
expansion made the financial system more fragile. And it was also the
cause of the financial USA crisis of the 2007-2009 that began years
earlier with cheap credit and lax lending standards that fueled a
housing bubble, so i think that we have not to make again those mistakes
in the financial sector from toxic assets and from "bad loans", so we
have to "higher" the standards of the loans etc. in the financial sector.
And here is my other thoughts about the other problem of financial sector:
And here is how i will explain it more, look at Financial sector,
so you can understand more capitalism and the mechanism of diversity
that brings "resilience" and that needs a good allocation of resources
in capitalism by reading my following thoughts:
The biggest benefit of finance, is to provide opportunities to people,
in the sense that in a world where there is no finance, the only way to
start a company is to be born rich or to have saved for a long time. In
a world where finance works well, the people with talent can actually
start firms and reach their dreams without waiting to either have saved
the money, or be lucky and receive it from their parents, and once you
create this opportunity, you will have the most talented people take
advantage of those opportunities, which favors growth, which favors a
good allocation of resources and, ultimately, innovation. But we have to
know what is the problem with finance, and here it is, read the
following so that to understand:
One last chance to fix capitalism
Read more here:
https://hbr.org/2020/03/one-last-chance-to-fix-capitalism
So i invite you to look at the following video about capitalism:
How to Improve Capitalism
https://www.youtube.com/watch?v=YOaJe68C-bU
So as you notice in the above video that you can also fix capitalism by
giving voting rights and tax advantages to long-term shareholders and
not by raising taxes, and you need to have sovereign wealth funds and
national pension funds representative of the long term collective
interests etc, so i invite you to look the above video of "How to
improve capitalism" so that to understand more.
And if you want to know more about my views on capitalism,
read them here:
https://groups.google.com/g/alt.culture.morocco/c/cf3Wa4z8Xmc
Thank you,
Amine Moulay Ramdane.
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