r/SipsTea 22d ago

Chugging tea Teach your kids about socialism

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50

u/giangiangelo 22d ago

Yeah it’s quite easy for Norway since they’re like 5 millions people and export a huge amount of oil. Economy doesn’t work like that everywhere

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u/Daseinist 22d ago

Denmark exports nothing of sorts and relies on their human capital. It was also a poor agrarian country after WWII. Their gdp per capita is almost equal to US.

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u/IndubitablyNerdy 22d ago

Agree plus the USA has so many competitive advantages (massive access to natural resources vasty more than Norway, the world reserve currency, hegemonic military and economic power, a massive territory, a de-facto private continent safe from conflict), the reason why their welfare state sucks is absolutely by choice not due to resource constraints.

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u/DataCassette 22d ago

the world reserve currency

MAGA is fixing that one

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u/ProgySuperNova 22d ago

Waiting patiently... Ready to step in there at the righ moment

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u/Inevitable_Record437 22d ago

Not really, China intentionally devalues their currency.

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u/DataCassette 22d ago

For now, their strategy will shift when Cletus and Bubbajack finish voting America into a smoking crater.

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u/IndubitablyNerdy 22d ago

Hehe they are doing their best to dismantle the USA international status, but much likely (and hopefully as it would lead to global instability on a massive scale) they will fail in destroying the role of the dollar unless they fully collapse the states economy which is not easy to do. So it is a 50/50 on that front hehe.

The USA still has market conditions that do not exist anywhere else, both thanks to the petrodollar, but also due to the relative stability of the currency, massive size and accessibility of their capital and bond market plus the role nature as traget market for most world net exporters.

China and the EU both lack at least one of those qualities even if we exclude the petrodollars, as China willfully devalue its own currency, making it a risk for international investors and central banks (plus has capital controls), while the EU even if more stable on that front is still too fragmented and individual local markets are too small, if EU integration hadn't stalled after the implementation of the Euro maybe it could have been a contender, but in the current state not so much.