Record 10th straight year of sub 3% growth.

[Mircea]

Originally Posted by J.Thomas

But you have no clue about this transition??

What do we need to do to manage this transition or this 5th level you're speaking of??

Lots of intelligent STEM graduates and tax policies that favor R&D Investment.

Originally Posted by J.Thomas

I'm not seeing any progress in any way!!

2nd Level Economies grow rapidly. That's what they do. We have centuries of data on 2nd Level Economies. It's not unusual to see 1st or 2nd Level Economies growing at rates of 5% to 12% (or even higher) per quarter.

We only have decades of data on 3rd and 4th Level Economies and they grow, but at much slower rates than 1st or 2nd Level Economies.

Originally Posted by Philip T

Just having a Positive Number indicates Growth.

That would be the long and short of it.

[J.Thomas]

Originally Posted by Mircea

Lots of intelligent STEM graduates and tax policies that favor R&D Investment.



2nd Level Economies grow rapidly. That's what they do. We have centuries of data on 2nd Level Economies. It's not unusual to see 1st or 2nd Level Economies growing at rates of 5% to 12% (or even higher) per quarter.

We only have decades of data on 3rd and 4th Level Economies and they grow, but at much slower rates than 1st or 2nd Level Economies.




That would be the long and short of it.

We should talk about 5th level.

I'll start a thread later.

[Skydive Outlaw]

When there was 'growth', the bottom 60% of Americans were getting nowhere anyway although due to alot of smoke and mirrors, they were convinced that they too could be a part of the American dream.


At this point and with no growth for a decade: The lie and charade has been exposed. And that is a good thing.

[Mircea]

Originally Posted by J.Thomas

We should talk about 5th level.

It's R&D and related fields.

This is China's GDP breakout by sector:



This is the US:



Many economists lump construction in with manufacturing, since they are both 2nd Level Economic activities, but these are the only graphs I could find on the fly.


You can see where the US has...

0 Level Economy (Agriculture): 1% (China 6%)
1st Level Economy (Mining/Resources): 2% (China Unk% -- probably lumped in with manufacturing).
2nd/3rd Level Economy: 18% (China has 59% if you take manufacturing and construction together).
4th Level Economy: 79% (China has 35%)

US investment in R&D is only 3% of GDP, but that measures investment and not output.

Even though it's not possible to tell from these charts, US 5th Level Economic Activity should be running about 15%-18% of your GDP, if you had entered the 5th Level Economy in the mid-1990s like you should have done. For every 10 manufacturing jobs you lost, you should have gained 8-9 R&D jobs.

You didn't and still aren't.

Note that for services, more than 38% of GDP is government spending at the federal (20%), State (8%) and local (10%) levels. You can imagine that a good chunk of China's 35% of services are also government spending at the national, provincial and local levels.

When China expands into its 3rd Level Economy more fully, you'll lose more 3rd Level Economic jobs. You'll also lose jobs when India begins its expansion.



As you can see, India only has about 23% manufacturing, with 17% agriculture and 4% mining and electrical power production. China will also lose jobs to India in manufacturing, if its any consolation.