The Faltering Economy Of America Leading To The Scary Rise Of China

The USA’s economy is slowing down. China’s economy is growing quick. This creates an interesting situation where China is in the process of catching up America, having the potential to become the largest economy in the world. Let’s talk about this, how it’s occurring & the effects it could have…

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The USA has had one of the greatest economies that has ever been created. Coming from nothing at the start of the 20th Century America was able to get passed its dysfunctional financial system, it’s labor conflicts and greed fueled politics and unite together to overtake Britain and become the dominant empire that we know it to be today.

But, those who have been following America’s growth over the recent decade will see that it’s starting to slow down and countries such as China & India are catching up. If we take a look at the growth of these countries we see that India & China are miles ahead of the USA. The USA has had an average GDP growth rate of around 2%, whereas China & India are growing about 3 times faster, India’s average is around 6% & China’s 7%.

This brings us the question is this the start of the end for the U.S empire and the beginning of a Chinese one?...

So what made America’s economy so great and why is it the current economic superpower of the world? How does a country with less than 5% of the world’s population generate and earn more than 20% of the world’s total income?

The USA’s economy has a few key areas that makes it up. Number 1 is finance, insurance & real estate. This makes up 22.3% of the entire economy’s GDP. This comes from areas like the banks, Wells Fargo, Bank of America, JP Morgan etc. It comes from insurance companies like Warren Buffett’s Geico, United healthcare & Cigna… This area is so big and important to the USA it’s one of the reasons why they couldn’t let the banks go bust in the 2008 housing collapse. The whole system could have folded.

The next largest sector of the USA’s economy is professional and business services, making up 12.8% in total. This comes from the lawyers, the accountants, Amazons web services, Facebook with their advertising, huge sector.

The government of course contributes as well. You’ve got things like healthcare with Medicare and Medicaid. You’ve got pensions & welfare being handed out. Money towards education & defense. These all contribute towards total GDP. Manufacturing accounts for 10.8% of USA’s total economy. Everything that’s sold on Amazon that has to be manufactured. The shoes, the phones, the appliances, the makeup, USA has a strong manufacturing industry but no where near the likes of China.

China accounted for 28.7% of the worlds global manufacturing output worth $4 trillion dollars. The USA is the second largest but still much below China at 16.8%. So the USA is 10% above Japan and China is 10% above the USA. Where America does have the major advantage over China is technology. And that is technology already spread throughout the world.

Think about Apple and all of the avid consumers they have in most countries. Huawei from China has the same, but nowhere near the extent of Apple, or the quality. Facebook is a global company with roughly 2.85 billion monthly active users. It’s the same with Twitter and Instagram, all those global platforms are American.

China has their own social media in the form of WeChat and Sina Weibo but these are not global, they’re purely Chinese. On the other hand, they are growing their global presence now through TikTok which is Chinese owned. This is a huge positive for China’s influence and power.

But if you sum all of it up, the technology, the manufacturing, the finance, insurance, business services, etc, China are increasing at a faster rate than the USA. As we said earlier it’s around a 2% average growth for America, 7% for China.

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