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Re:Federal Reserve raises rates by 0.75% by ren_engineer on Wednesday June 15, 2022 @03:17PM (#31757974)
takes guts to do this and it was needed. Problem is that it will expose that most of the US economy is a sham that needed 0% interest rates to even fake growth. our "leaders" have been kicking the can down the road for a long time. US economy used to grow even with very high interest rates, now even a slight increase puts us into a recession.
Re:Federal Reserve raises rates by 0.75% by queuebert on Wednesday June 15, 2022 @03:24PM (#31758089)
Is this because of the transition to a service economy?
Re:Federal Reserve raises rates by 0.75% by lumost on Wednesday June 15, 2022 @03:42PM (#31758338)
There is a counter view that the US economy experienced a variation of dutch disease by being the world's reserve currency. In this view, being the world's reserve currency forced the US to "export" dollars and "import" goods. Making goods manufactured from USD jurisdictions irrationally non-competitive.

The reason "dutch disease" is a problem for resource producing countries is that manufacturing productivity growth is much stronger compared to commodity production. It's better to be a manufacturing powerhouse than it is to be a commodity powerhouse.

It's entirely plausible that services are the same way, it's better to make things for other people than to do things for other people.

Re:Federal Reserve raises rates by 0.75% by R0b0t1 on Thursday June 16, 2022 @01:07AM (#31762593)
All progress so far has been related to scientific instruments in some way, shape, or form. We required the industrial revolution to get to where we are because our bodies can't do it.

So, yeah, anything but an industrial, or post-industrial computer driven line, is setting your country up for long term failure. There is lots of societal enrichment that comes not just from the direct production of these things and their sale but also from how they facilitate the ad-hoc understanding of reality.

Re:Federal Reserve raises rates by 0.75% by treis on Wednesday June 15, 2022 @03:54PM (#31758535)
I think it's harder to distill qualitative improvement into a GDP number.

Take TV for example. Today you can watch Squid Games on your 65" 4k TV. 30 years ago you got to watch whatever was on cable on your 27" CRT. But where does that improvement get captured? We don't manufacture more TVs. In fact, we make fewer. We don't spend more money on Netflix than Cable. We actually spend less.

There's a lot of things like that where the quality has improved but that's hard to put an actual GDP number on.

Re:Federal Reserve raises rates by 0.75% by imachine1980_ on Wednesday June 15, 2022 @03:33PM (#31758217)
I thinks most becouse real growth only happens in Asian countries last decades, and usa and europe companies fake growth by overlabredge debt becouse of the lower inters rate, not productivity
Re:Federal Reserve raises rates by 0.75% by treis on Wednesday June 15, 2022 @04:06PM (#31758730)
Oh come on. Asia didn't invent the iPhone. They're not leading the self driving car race. The internet runs on AWS/Azure/GCloud not any Asian provider.

Asia is making incremental improvements on products invented in the West. They're not the ones inventing classes of devices or breaking new ground.

Re:Federal Reserve raises rates by 0.75% by ren_engineer on Wednesday June 15, 2022 @05:49PM (#31759883)
>Asia didn't invent the iPhone

They didn't invent it, but they make probably 90% of the hardware components

Re:Federal Reserve raises rates by 0.75% by kthejoker2 on Wednesday June 15, 2022 @06:34PM (#31760290)
"make", but who owns the patents
Re:Federal Reserve raises rates by 0.75% by ahi on Wednesday June 15, 2022 @03:30PM (#31758174)
Financialization. Damn near everything is actually a bank these days.
Re:Federal Reserve raises rates by 0.75% by ren_engineer on Wednesday June 15, 2022 @03:34PM (#31758235)
and even more so the fact that 2008 resulted in no real punishment of this system like a real free market should have caused. The response to 2008 will be seen as a historic gaffe
Re:Federal Reserve raises rates by 0.75% by JasserInicide on Wednesday June 15, 2022 @04:24PM (#31758954)
The response to 2008 was Trump.
Re:Federal Reserve raises rates by 0.75% by danaris on Wednesday June 15, 2022 @05:38PM (#31759788)
I strongly suspect it is related to (if not entirely caused by) the very wealthy taking nearly all the gains due to productivity over the last ~40 years.

We've stopped reinvesting our profits, essentially.

Re:Federal Reserve raises rates by 0.75% by nlittlepoole on Wednesday June 15, 2022 @03:33PM (#31758213)
I see it as a combination of demographics (less millennials than boomers to drive consumption) and a lack of investment 20 to 30 years ago into next generation infrastructure and institutions (energy, transport, healthcare, education, etc) that would have given us more productivity growth outside of software and the internet.
Re:Federal Reserve raises rates by 0.75% by imtringued on Wednesday June 15, 2022 @04:33PM (#31759088)
Why do people assume that an economy will grow forever. If that were the case, how come the Roman empire failed to conquer the galaxy? 3% over 2000 years is a lot of growth, a lot, I can't stress how unimaginably large that amount of growth is.
Re:Federal Reserve raises rates by 0.75% by sumy23 on Wednesday June 15, 2022 @04:43PM (#31759228)
People assume the economy will grow forever because they don't want the future to look like feudal Europe where economic stagnation led to a millennium of toil and suffering.