Why is America so rich?

[oddballstocks]

"I am just a poor Canadian who knows more about the US than most Americans.... :-)"

 

Ditto. It is unfortunate that so many Americans don't think outside the box and can't see their country as does the rest of the world.

 

The human condition.  Almost all humans look at themselves in the mirror each morning and think "I look good" yet that's not what everyone else thinks.. this is culture agnostic

[rkbabang]

In your initial post you mentioned:

 

Basically America throws away 20% of its GDP and yet somehow its still incredibly prosperous and innovative.

 

I don't think it is complete throw away. Lot of Americans are employed and providing good services. There are huge externalities such as Internet coming out of DARPA.

 

If you look at last fifty years technology has had huge impact but given unpredictable success rate in technology having US military as buyer (which is not available to lot of countries and companies in the world) is huge advantage too.

 

Even healthcare spending benefits technology advancement and innovation. Improvements in the healthcare are also related to advance in semiconductor.

 

Here is list of largest 30 companies in S&P:

 

Apple Inc

Microsoft Corp

Amazon.com Inc

Facebook Inc

Exxon Mobil Corp

Johnson & Johnson

JPMorgan Chase & Co

Berkshire Hathaway Inc

Alphabet Inc

General Electric Co

Wells Fargo & Co

Bank of America Corp

AT&T Inc

Procter & Gamble Co/The

Chevron Corp

Pfizer Inc

Home Depot Inc/The

Verizon Communications Inc

Comcast Corp

Merck & Co Inc

Philip Morris International Inc

Intel Corp

Visa Inc

Cisco Systems Inc

Coca-Cola Co/The

Citigroup Inc

UnitedHealth Group Inc

PepsiCo Inc

Walt Disney Co/The

 

I guess you can go through the S&P list of companies assigning them 2-3 factors from list of 10 contributing to their success. Analysis over 500 top companies would be good analysis of American strength.

 

 

I'd agree it isn't a complete throw-away.  It is a net negative, just not anywhere near -20%.  Just like when the mafia keeps drugs and petty crime off the streets, that makes up for some portion of the wealth that business owners are extorted, but it is still a net negative to some extent.

 

[BG2008]

In the last few years, I've heard a lot about why America isn't that great.  These issues include racial issues, healthcare access, etc. 

 

Being a NYC resident, I still see immigrants flood into the city year after year.  My family was one of those 25 years ago.  Perhaps this is survivor ship bias, but my family has experienced upward mobility over the years.  Four kids were sent to college and we all make over six figures today and we all have some sort of equity in real estate ownership.  You may say that that's your family.  You were a part of an intensely driven family.  But is it?  I have been thinking a lot about this topic lately.  See, I came from a small town in China with a 2,000 population.  In the 1980s, it wasn't that great to be a citizen of China.  We do not have farmland like the US.  We were bordered by water on one end and a hill on the back.  Agriculture was not really an option.  It was a truly Malthusian situation with rapid population growth and not enough arable land to feed everyone. 

 

Being people who lived by the water, people found ways to leave.  There were four main destinations.  US (almost always NYC), Japan, Hong kong, and Taiwan.  Back then, the wage arbitrage was incredibly large.  If you worked for 2 days in Hong Kong, it was a month salary in China.  People used to take these month long "tours" of Hong Kong and then would proceed to wash dishes non stop.  Doctors used to do this.

 

In the long run, people who went to Hong Kong, Taiwan and Japan tend to regret it.  People who winded up in the US, on the aggregate, did much better.  Why?  Despite the fact that American in general think that "my people" all look alike (tongue in cheek humor here), the Japanese are quite xenophobic.  They do not grant permanent status to the Chinese. Frankly, they think themselves as superior.  If you don't believe me, ask around.  Japanese mixed race are treated pretty bad, i.e. Brazilian Japanese.  Japan also went through a bad deflationary environment since the 90s.  Oh, I almost forgot, you're not really allowed to legally work in Japan as a Chinese immigrant.  There is no legal mechanism for you to gain legal status over time.  That also extends to home ownership or owning a business.  If you think upward mobility is tough here in the US, try moving upward in Japan as a Chinese immigrant.  I think Caucasians have an easier time as some sort of high level executive or entertainer.  Hong Kong is a tough place. Housing prices are high.  If you want to talk wealth disparity, Hong Kong is much worse than the US. 

 

Most of my family came here in the early 90s.  We run a restaurant like many other families.  As a matter of fact, 95% of the Chinese take-out/buffet are run by people in the city where I come from.  I was essentially a business manager at the age of 11-12.  This is because my parents didn't speak English and I was the most proficient at that age.  I didn't say I was any good, but I was the best that they've got.  So let's recap this.  A Chinese immigrant went to Japan, Hong Kong, and Taiwan and he has a hard time gaining legal status and has to work off the books.  Many wind up returning back to China only to immigrate again to the US.  There are issues with owning property and businesses.  In general, the hurdles are much higher in Asia.  Anyway, I was 11-12 and my parents were rural farmers in China.  Because we were willing to work 70-80 hours a week, the US basically said "if you can turn a profit selling Chinese food to Jewish housewives on Long Island, more power to you."  Now it wasn't all sunshine.  It was hard work as I have detailed in my previous rant about the restaurant business.  Some of the regulation, fire, health, etc were tough and unfair.  At various times, I wondered why do the incumbents not care that some Chinese immigrant came here and just set up shop?  I have been witnesses to locals protesting and bashing shops set up by people from other regions trying to start business in my town back in China.  People were very protective of their local turf.  I also wondered why wasn't the US checking IDs as many businesses hired undocumented employees.  Why do the landlord rent to us?  My parents can't even pronounce the ABCs. 

 

As a 36 year old, I will venture a guess.  These opportunities are allowed because of America's business environment.  The Jewish housewives wants a meal for $5 per person because she doesn't feel like cooking.  It's good value for what she's getting.  The landlord rent to us because the Chinese take out is a proven business model and you have former farmers who understand they have to work 80 hours a week to make it work.  ICE isn't raiding businesses like us because it's too low of a return on resource.  You may feel that this is the case in every country.  Then I suggest you travel around and talk to people overseas.  In certain areas, just getting a permit can cost an arm and a leg in bribes.  While my family has been extremely frustrated by some of the bureaucracy in the US (DMV), for the most part we agree that the US is easier to do business.  Subsequent upward mobility came in the form of home appreciation.  We made some gutsy calls to take out a home equity loan to use as a down payment to buy in Queens.  It's ironic that Queens used to be the place where no white collar office worker would live in.  Even Brooklyn was dicey back then.  But areas gentrified an the people who benefited were "ethnic folks" like my family.  In Japan, this would not have happened because home ownership was not an option.  All four of the kids went to college and received merit scholarships and financial aids.  But then SUNY schools were dirt cheap and Ivy basically gave you a free tuition if household income is low.  The US university system is one of the greatest providers of upward mobility if you know how to fully utilize it.  If you want to study literature, Asian studies, or Latin American history, you maybe digging yourself a hole.     

 

What is unique is that this isn't just limited to my family.  I think that 50% of the families from my hometown owned a Chinese take out business in the US.  The outcome is systemic not one-off. 

 

I think it's great that in the US you won't be harmed for shouting obnoxious comments about the government and politicians and social injustice.  I support people's rights to exercise their first amendment rights.  At the same time, I encourage people to look at the situation objectively and understand that for those with a will, the US is likely the best environment for upward mobility.  There are some caveat being that I think the US used to attract and were able to keep some of the best and the brightest in tech, medicine, etc.  I have noticed that many are returning to their homeland because the opportunities are greater.  This could be due to a variety of reasons include "bamboo ceilings" in the US or the graduates having better network/connection/access to start up capital in their homeland.  The tech and VC scene in China and India have grown quite robust in the last 4-5 years.  Could this be the tipping point?  We will see   

[Uccmal]

In the last few years, I've heard a lot about why America isn't that great.  These issues include racial issues, healthcare access, etc. 

 

Being a NYC resident, I still see immigrants flood into the city year after year.  My family was one of those 25 years ago.  Perhaps this is survivor ship bias, but my family has experienced upward mobility over the years.  Four kids were sent to college and we all make over six figures today and we all have some sort of equity in real estate ownership.  You may say that that's your family.  You were a part of an intensely driven family.  But is it?  I have been thinking a lot about this topic lately.  See, I came from a small town in China with a 2,000 population.  In the 1980s, it wasn't that great to be a citizen of China.  We do not have farmland like the US.  We were bordered by water on one end and a hill on the back.  Agriculture was not really an option.  It was a truly Malthusian situation with rapid population growth and not enough arable land to feed everyone. 

 

Being people who lived by the water, people found ways to leave.  There were four main destinations.  US (almost always NYC), Japan, Hong kong, and Taiwan.  Back then, the wage arbitrage was incredibly large.  If you worked for 2 days in Hong Kong, it was a month salary in China.  People used to take these month long "tours" of Hong Kong and then would proceed to wash dishes non stop.  Doctors used to do this.

 

In the long run, people who went to Hong Kong, Taiwan and Japan tend to regret it.  People who winded up in the US, on the aggregate, did much better.  Why?  Despite the fact that American in general think that "my people" all look alike (tongue in cheek humor here), the Japanese are quite xenophobic.  They do not grant permanent status to the Chinese. Frankly, they think themselves as superior.  If you don't believe me, ask around.  Japanese mixed race are treated pretty bad, i.e. Brazilian Japanese.  Japan also went through a bad deflationary environment since the 90s.  Oh, I almost forgot, you're not really allowed to legally work in Japan as a Chinese immigrant.  There is no legal mechanism for you to gain legal status over time.  That also extends to home ownership or owning a business.  If you think upward mobility is tough here in the US, try moving upward in Japan as a Chinese immigrant.  I think Caucasians have an easier time as some sort of high level executive or entertainer.  Hong Kong is a tough place. Housing prices are high.  If you want to talk wealth disparity, Hong Kong is much worse than the US. 

 

Most of my family came here in the early 90s.  We run a restaurant like many other families.  As a matter of fact, 95% of the Chinese take-out/buffet are run by people in the city where I come from.  I was essentially a business manager at the age of 11-12.  This is because my parents didn't speak English and I was the most proficient at that age.  I didn't say I was any good, but I was the best that they've got.  So let's recap this.  A Chinese immigrant went to Japan, Hong Kong, and Taiwan and he has a hard time gaining legal status and has to work off the books.  Many wind up returning back to China only to immigrate again to the US.  There are issues with owning property and businesses.  In general, the hurdles are much higher in Asia.  Anyway, I was 11-12 and my parents were rural farmers in China.  Because we were willing to work 70-80 hours a week, the US basically said "if you can turn a profit selling Chinese food to Jewish housewives on Long Island, more power to you."  Now it wasn't all sunshine.  It was hard work as I have detailed in my previous rant about the restaurant business.  Some of the regulation, fire, health, etc were tough and unfair.  At various times, I wondered why do the incumbents not care that some Chinese immigrant came here and just set up shop?  I have been witnesses to locals protesting and bashing shops set up by people from other regions trying to start business in my town back in China.  People were very protective of their local turf.  I also wondered why wasn't the US checking IDs as many businesses hired undocumented employees.  Why do the landlord rent to us?  My parents can't even pronounce the ABCs. 

 

As a 36 year old, I will venture a guess.  These opportunities are allowed because of America's business environment.  The Jewish housewives wants a meal for $5 per person because she doesn't feel like cooking.  It's good value for what she's getting.  The landlord rent to us because the Chinese take out is a proven business model and you have former farmers who understand they have to work 80 hours a week to make it work.  ICE isn't raiding businesses like us because it's too low of a return on resource.  You may feel that this is the case in every country.  Then I suggest you travel around and talk to people overseas.  In certain areas, just getting a permit can cost an arm and a leg in bribes.  While my family has been extremely frustrated by some of the bureaucracy in the US (DMV), for the most part we agree that the US is easier to do business.  Subsequent upward mobility came in the form of home appreciation.  We made some gutsy calls to take out a home equity loan to use as a down payment to buy in Queens.  It's ironic that Queens used to be the place where no white collar office worker would live in.  Even Brooklyn was dicey back then.  But areas gentrified an the people who benefited were "ethnic folks" like my family.  In Japan, this would not have happened because home ownership was not an option.  All four of the kids went to college and received merit scholarships and financial aids.  But then SUNY schools were dirt cheap and Ivy basically gave you a free tuition if household income is low.  The US university system is one of the greatest providers of upward mobility if you know how to fully utilize it.  If you want to study literature, Asian studies, or Latin American history, you maybe digging yourself a hole.     

 

What is unique is that this isn't just limited to my family.  I think that 50% of the families from my hometown owned a Chinese take out business in the US.  The outcome is systemic not one-off. 

 

I think it's great that in the US you won't be harmed for shouting obnoxious comments about the government and politicians and social injustice.  I support people's rights to exercise their first amendment rights.  At the same time, I encourage people to look at the situation objectively and understand that for those with a will, the US is likely the best environment for upward mobility.  There are some caveat being that I think the US used to attract and were able to keep some of the best and the brightest in tech, medicine, etc.  I have noticed that many are returning to their homeland because the opportunities are greater.  This could be due to a variety of reasons include "bamboo ceilings" in the US or the graduates having better network/connection/access to start up capital in their homeland.  The tech and VC scene in China and India have grown quite robust in the last 4-5 years.  Could this be the tipping point?  We will see 

 

+ 10 : Awesome story. 

 

I met a lady way back who was retired from running a "Chinese" restaurant with her family.  She owned all the buildings on half a city block in the downtown of a smallish city in Ontario.  Dont how the rest of the family fared... the cheap labour portion.  She was probaby from Hong Kong or from the mainland via Hong Kong. 

[abyli]

In the last few years, I've heard a lot about why America isn't that great.  These issues include racial issues, healthcare access, etc. 

 

Being a NYC resident, I still see immigrants flood into the city year after year.  My family was one of those 25 years ago.  Perhaps this is survivor ship bias, but my family has experienced upward mobility over the years.  Four kids were sent to college and we all make over six figures today and we all have some sort of equity in real estate ownership.  You may say that that's your family.  You were a part of an intensely driven family.  But is it?  I have been thinking a lot about this topic lately.  See, I came from a small town in China with a 2,000 population.  In the 1980s, it wasn't that great to be a citizen of China.  We do not have farmland like the US.  We were bordered by water on one end and a hill on the back.  Agriculture was not really an option.  It was a truly Malthusian situation with rapid population growth and not enough arable land to feed everyone. 

 

Being people who lived by the water, people found ways to leave.  There were four main destinations.  US (almost always NYC), Japan, Hong kong, and Taiwan.  Back then, the wage arbitrage was incredibly large.  If you worked for 2 days in Hong Kong, it was a month salary in China.  People used to take these month long "tours" of Hong Kong and then would proceed to wash dishes non stop.  Doctors used to do this.

 

In the long run, people who went to Hong Kong, Taiwan and Japan tend to regret it.  People who winded up in the US, on the aggregate, did much better.  Why?  Despite the fact that American in general think that "my people" all look alike (tongue in cheek humor here), the Japanese are quite xenophobic.  They do not grant permanent status to the Chinese. Frankly, they think themselves as superior.  If you don't believe me, ask around.  Japanese mixed race are treated pretty bad, i.e. Brazilian Japanese.  Japan also went through a bad deflationary environment since the 90s.  Oh, I almost forgot, you're not really allowed to legally work in Japan as a Chinese immigrant.  There is no legal mechanism for you to gain legal status over time.  That also extends to home ownership or owning a business.  If you think upward mobility is tough here in the US, try moving upward in Japan as a Chinese immigrant.  I think Caucasians have an easier time as some sort of high level executive or entertainer.  Hong Kong is a tough place. Housing prices are high.  If you want to talk wealth disparity, Hong Kong is much worse than the US. 

 

Most of my family came here in the early 90s.  We run a restaurant like many other families.  As a matter of fact, 95% of the Chinese take-out/buffet are run by people in the city where I come from.  I was essentially a business manager at the age of 11-12.  This is because my parents didn't speak English and I was the most proficient at that age.  I didn't say I was any good, but I was the best that they've got.  So let's recap this.  A Chinese immigrant went to Japan, Hong Kong, and Taiwan and he has a hard time gaining legal status and has to work off the books.  Many wind up returning back to China only to immigrate again to the US.  There are issues with owning property and businesses.  In general, the hurdles are much higher in Asia.  Anyway, I was 11-12 and my parents were rural farmers in China.  Because we were willing to work 70-80 hours a week, the US basically said "if you can turn a profit selling Chinese food to Jewish housewives on Long Island, more power to you."  Now it wasn't all sunshine.  It was hard work as I have detailed in my previous rant about the restaurant business.  Some of the regulation, fire, health, etc were tough and unfair.  At various times, I wondered why do the incumbents not care that some Chinese immigrant came here and just set up shop?  I have been witnesses to locals protesting and bashing shops set up by people from other regions trying to start business in my town back in China.  People were very protective of their local turf.  I also wondered why wasn't the US checking IDs as many businesses hired undocumented employees.  Why do the landlord rent to us?  My parents can't even pronounce the ABCs. 

 

As a 36 year old, I will venture a guess.  These opportunities are allowed because of America's business environment.  The Jewish housewives wants a meal for $5 per person because she doesn't feel like cooking.  It's good value for what she's getting.  The landlord rent to us because the Chinese take out is a proven business model and you have former farmers who understand they have to work 80 hours a week to make it work.  ICE isn't raiding businesses like us because it's too low of a return on resource.  You may feel that this is the case in every country.  Then I suggest you travel around and talk to people overseas.  In certain areas, just getting a permit can cost an arm and a leg in bribes.  While my family has been extremely frustrated by some of the bureaucracy in the US (DMV), for the most part we agree that the US is easier to do business.  Subsequent upward mobility came in the form of home appreciation.  We made some gutsy calls to take out a home equity loan to use as a down payment to buy in Queens.  It's ironic that Queens used to be the place where no white collar office worker would live in.  Even Brooklyn was dicey back then.  But areas gentrified an the people who benefited were "ethnic folks" like my family.  In Japan, this would not have happened because home ownership was not an option.  All four of the kids went to college and received merit scholarships and financial aids.  But then SUNY schools were dirt cheap and Ivy basically gave you a free tuition if household income is low.  The US university system is one of the greatest providers of upward mobility if you know how to fully utilize it.  If you want to study literature, Asian studies, or Latin American history, you maybe digging yourself a hole.     

 

What is unique is that this isn't just limited to my family.  I think that 50% of the families from my hometown owned a Chinese take out business in the US.  The outcome is systemic not one-off. 

 

I think it's great that in the US you won't be harmed for shouting obnoxious comments about the government and politicians and social injustice.  I support people's rights to exercise their first amendment rights.  At the same time, I encourage people to look at the situation objectively and understand that for those with a will, the US is likely the best environment for upward mobility.  There are some caveat being that I think the US used to attract and were able to keep some of the best and the brightest in tech, medicine, etc.  I have noticed that many are returning to their homeland because the opportunities are greater.  This could be due to a variety of reasons include "bamboo ceilings" in the US or the graduates having better network/connection/access to start up capital in their homeland.  The tech and VC scene in China and India have grown quite robust in the last 4-5 years.  Could this be the tipping point?  We will see 

 

Nice story. I am Chinese from HuNan. Where are you from?

[fareastwarriors]

In the last few years, I've heard a lot about why America isn't that great.  These issues include racial issues, healthcare access, etc. 

 

Being a NYC resident, I still see immigrants flood into the city year after year.  My family was one of those 25 years ago.  Perhaps this is survivor ship bias, but my family has experienced upward mobility over the years.  Four kids were sent to college and we all make over six figures today and we all have some sort of equity in real estate ownership.  You may say that that's your family.  You were a part of an intensely driven family.  But is it?  I have been thinking a lot about this topic lately.  See, I came from a small town in China with a 2,000 population.  In the 1980s, it wasn't that great to be a citizen of China.  We do not have farmland like the US.  We were bordered by water on one end and a hill on the back.  Agriculture was not really an option.  It was a truly Malthusian situation with rapid population growth and not enough arable land to feed everyone. 

 

Being people who lived by the water, people found ways to leave.  There were four main destinations.  US (almost always NYC), Japan, Hong kong, and Taiwan.  Back then, the wage arbitrage was incredibly large.  If you worked for 2 days in Hong Kong, it was a month salary in China.  People used to take these month long "tours" of Hong Kong and then would proceed to wash dishes non stop.  Doctors used to do this.

 

In the long run, people who went to Hong Kong, Taiwan and Japan tend to regret it.  People who winded up in the US, on the aggregate, did much better.  Why?  Despite the fact that American in general think that "my people" all look alike (tongue in cheek humor here), the Japanese are quite xenophobic.  They do not grant permanent status to the Chinese. Frankly, they think themselves as superior.  If you don't believe me, ask around.  Japanese mixed race are treated pretty bad, i.e. Brazilian Japanese.  Japan also went through a bad deflationary environment since the 90s.  Oh, I almost forgot, you're not really allowed to legally work in Japan as a Chinese immigrant.  There is no legal mechanism for you to gain legal status over time.  That also extends to home ownership or owning a business.  If you think upward mobility is tough here in the US, try moving upward in Japan as a Chinese immigrant.  I think Caucasians have an easier time as some sort of high level executive or entertainer.  Hong Kong is a tough place. Housing prices are high.  If you want to talk wealth disparity, Hong Kong is much worse than the US. 

 

Most of my family came here in the early 90s.  We run a restaurant like many other families.  As a matter of fact, 95% of the Chinese take-out/buffet are run by people in the city where I come from.  I was essentially a business manager at the age of 11-12.  This is because my parents didn't speak English and I was the most proficient at that age.  I didn't say I was any good, but I was the best that they've got.  So let's recap this.  A Chinese immigrant went to Japan, Hong Kong, and Taiwan and he has a hard time gaining legal status and has to work off the books.  Many wind up returning back to China only to immigrate again to the US.  There are issues with owning property and businesses.  In general, the hurdles are much higher in Asia.  Anyway, I was 11-12 and my parents were rural farmers in China.  Because we were willing to work 70-80 hours a week, the US basically said "if you can turn a profit selling Chinese food to Jewish housewives on Long Island, more power to you."  Now it wasn't all sunshine.  It was hard work as I have detailed in my previous rant about the restaurant business.  Some of the regulation, fire, health, etc were tough and unfair.  At various times, I wondered why do the incumbents not care that some Chinese immigrant came here and just set up shop?  I have been witnesses to locals protesting and bashing shops set up by people from other regions trying to start business in my town back in China.  People were very protective of their local turf.  I also wondered why wasn't the US checking IDs as many businesses hired undocumented employees.  Why do the landlord rent to us?  My parents can't even pronounce the ABCs. 

 

As a 36 year old, I will venture a guess.  These opportunities are allowed because of America's business environment.  The Jewish housewives wants a meal for $5 per person because she doesn't feel like cooking.  It's good value for what she's getting.  The landlord rent to us because the Chinese take out is a proven business model and you have former farmers who understand they have to work 80 hours a week to make it work.  ICE isn't raiding businesses like us because it's too low of a return on resource.  You may feel that this is the case in every country.  Then I suggest you travel around and talk to people overseas.  In certain areas, just getting a permit can cost an arm and a leg in bribes.  While my family has been extremely frustrated by some of the bureaucracy in the US (DMV), for the most part we agree that the US is easier to do business.  Subsequent upward mobility came in the form of home appreciation.  We made some gutsy calls to take out a home equity loan to use as a down payment to buy in Queens.  It's ironic that Queens used to be the place where no white collar office worker would live in.  Even Brooklyn was dicey back then.  But areas gentrified an the people who benefited were "ethnic folks" like my family.  In Japan, this would not have happened because home ownership was not an option.  All four of the kids went to college and received merit scholarships and financial aids.  But then SUNY schools were dirt cheap and Ivy basically gave you a free tuition if household income is low.  The US university system is one of the greatest providers of upward mobility if you know how to fully utilize it.  If you want to study literature, Asian studies, or Latin American history, you maybe digging yourself a hole.     

 

What is unique is that this isn't just limited to my family.  I think that 50% of the families from my hometown owned a Chinese take out business in the US.  The outcome is systemic not one-off. 

 

I think it's great that in the US you won't be harmed for shouting obnoxious comments about the government and politicians and social injustice.  I support people's rights to exercise their first amendment rights.  At the same time, I encourage people to look at the situation objectively and understand that for those with a will, the US is likely the best environment for upward mobility.  There are some caveat being that I think the US used to attract and were able to keep some of the best and the brightest in tech, medicine, etc.  I have noticed that many are returning to their homeland because the opportunities are greater.  This could be due to a variety of reasons include "bamboo ceilings" in the US or the graduates having better network/connection/access to start up capital in their homeland.  The tech and VC scene in China and India have grown quite robust in the last 4-5 years.  Could this be the tipping point?  We will see 

 

+ 10 : Awesome story. 

 

I met a lady way back who was retired from running a "Chinese" restaurant with her family.  She owned all the buildings on half a city block in the downtown of a smallish city in Ontario.  Dont how the rest of the family fared... the cheap labour portion.  She was probaby from Hong Kong or from the mainland via Hong Kong.

 

 

Thanks for that BG. I grew in SF Bay Area. We are immigrants from outside of Xinhui. Much of my life was similar to yours except we didn't own a Chinese restaurant. I wished we did though! My mom was seamstress and my dad worked at Chinese take out places. They worked 6 or 7 days a week, no vacation. Mom was paid less than minimum wage at the time and my dad made a bit more than minimum.  Somehow they managed to save enough to buy a home in a nice town.  Long story short, my brother and I are doing just fine nowadays. He works hard in blue collar as general contractor and I work in an office. He owns a home as well a rental and it is the same for me. 

 

My family are grateful to have all these opportunities to succeed in this country.

 

 

[abyli]

In the last few years, I've heard a lot about why America isn't that great.  These issues include racial issues, healthcare access, etc. 

 

Being a NYC resident, I still see immigrants flood into the city year after year.  My family was one of those 25 years ago.  Perhaps this is survivor ship bias, but my family has experienced upward mobility over the years.  Four kids were sent to college and we all make over six figures today and we all have some sort of equity in real estate ownership.  You may say that that's your family.  You were a part of an intensely driven family.  But is it?  I have been thinking a lot about this topic lately.  See, I came from a small town in China with a 2,000 population.  In the 1980s, it wasn't that great to be a citizen of China.  We do not have farmland like the US.  We were bordered by water on one end and a hill on the back.  Agriculture was not really an option.  It was a truly Malthusian situation with rapid population growth and not enough arable land to feed everyone. 

 

Being people who lived by the water, people found ways to leave.  There were four main destinations.  US (almost always NYC), Japan, Hong kong, and Taiwan.  Back then, the wage arbitrage was incredibly large.  If you worked for 2 days in Hong Kong, it was a month salary in China.  People used to take these month long "tours" of Hong Kong and then would proceed to wash dishes non stop.  Doctors used to do this.

 

In the long run, people who went to Hong Kong, Taiwan and Japan tend to regret it.  People who winded up in the US, on the aggregate, did much better.  Why?  Despite the fact that American in general think that "my people" all look alike (tongue in cheek humor here), the Japanese are quite xenophobic.  They do not grant permanent status to the Chinese. Frankly, they think themselves as superior.  If you don't believe me, ask around.  Japanese mixed race are treated pretty bad, i.e. Brazilian Japanese.  Japan also went through a bad deflationary environment since the 90s.  Oh, I almost forgot, you're not really allowed to legally work in Japan as a Chinese immigrant.  There is no legal mechanism for you to gain legal status over time.  That also extends to home ownership or owning a business.  If you think upward mobility is tough here in the US, try moving upward in Japan as a Chinese immigrant.  I think Caucasians have an easier time as some sort of high level executive or entertainer.  Hong Kong is a tough place. Housing prices are high.  If you want to talk wealth disparity, Hong Kong is much worse than the US. 

 

Most of my family came here in the early 90s.  We run a restaurant like many other families.  As a matter of fact, 95% of the Chinese take-out/buffet are run by people in the city where I come from.  I was essentially a business manager at the age of 11-12.  This is because my parents didn't speak English and I was the most proficient at that age.  I didn't say I was any good, but I was the best that they've got.  So let's recap this.  A Chinese immigrant went to Japan, Hong Kong, and Taiwan and he has a hard time gaining legal status and has to work off the books.  Many wind up returning back to China only to immigrate again to the US.  There are issues with owning property and businesses.  In general, the hurdles are much higher in Asia.  Anyway, I was 11-12 and my parents were rural farmers in China.  Because we were willing to work 70-80 hours a week, the US basically said "if you can turn a profit selling Chinese food to Jewish housewives on Long Island, more power to you."  Now it wasn't all sunshine.  It was hard work as I have detailed in my previous rant about the restaurant business.  Some of the regulation, fire, health, etc were tough and unfair.  At various times, I wondered why do the incumbents not care that some Chinese immigrant came here and just set up shop?  I have been witnesses to locals protesting and bashing shops set up by people from other regions trying to start business in my town back in China.  People were very protective of their local turf.  I also wondered why wasn't the US checking IDs as many businesses hired undocumented employees.  Why do the landlord rent to us?  My parents can't even pronounce the ABCs. 

 

As a 36 year old, I will venture a guess.  These opportunities are allowed because of America's business environment.  The Jewish housewives wants a meal for $5 per person because she doesn't feel like cooking.  It's good value for what she's getting.  The landlord rent to us because the Chinese take out is a proven business model and you have former farmers who understand they have to work 80 hours a week to make it work.  ICE isn't raiding businesses like us because it's too low of a return on resource.  You may feel that this is the case in every country.  Then I suggest you travel around and talk to people overseas.  In certain areas, just getting a permit can cost an arm and a leg in bribes.  While my family has been extremely frustrated by some of the bureaucracy in the US (DMV), for the most part we agree that the US is easier to do business.  Subsequent upward mobility came in the form of home appreciation.  We made some gutsy calls to take out a home equity loan to use as a down payment to buy in Queens.  It's ironic that Queens used to be the place where no white collar office worker would live in.  Even Brooklyn was dicey back then.  But areas gentrified an the people who benefited were "ethnic folks" like my family.  In Japan, this would not have happened because home ownership was not an option.  All four of the kids went to college and received merit scholarships and financial aids.  But then SUNY schools were dirt cheap and Ivy basically gave you a free tuition if household income is low.  The US university system is one of the greatest providers of upward mobility if you know how to fully utilize it.  If you want to study literature, Asian studies, or Latin American history, you maybe digging yourself a hole.     

 

What is unique is that this isn't just limited to my family.  I think that 50% of the families from my hometown owned a Chinese take out business in the US.  The outcome is systemic not one-off. 

 

I think it's great that in the US you won't be harmed for shouting obnoxious comments about the government and politicians and social injustice.  I support people's rights to exercise their first amendment rights.  At the same time, I encourage people to look at the situation objectively and understand that for those with a will, the US is likely the best environment for upward mobility.  There are some caveat being that I think the US used to attract and were able to keep some of the best and the brightest in tech, medicine, etc.  I have noticed that many are returning to their homeland because the opportunities are greater.  This could be due to a variety of reasons include "bamboo ceilings" in the US or the graduates having better network/connection/access to start up capital in their homeland.  The tech and VC scene in China and India have grown quite robust in the last 4-5 years.  Could this be the tipping point?  We will see 

 

+ 10 : Awesome story. 

 

I met a lady way back who was retired from running a "Chinese" restaurant with her family.  She owned all the buildings on half a city block in the downtown of a smallish city in Ontario.  Dont how the rest of the family fared... the cheap labour portion.  She was probaby from Hong Kong or from the mainland via Hong Kong.

 

 

Thanks for that BG. I grew in SF Bay Area. We are immigrants from outside of Xinhui. Much of my life was similar to yours except we didn't own a Chinese restaurant. I wished we did though! My mom was seamstress and my dad worked at Chinese take out places. They worked 6 or 7 days a week, no vacation. Mom was paid less than minimum wage at the time and my dad made a bit more than minimum.  Somehow they managed to save enough to buy a home in a nice town.  Long story short, my brother and I are doing just fine nowadays. He works hard in blue collar as general contractor and I work in an office. He owns a home as well a rental and it is the same for me. 

 

My family are grateful to have all these opportunities to succeed in this country.

 

But honestly, most Chinese came in 1990s to US regret they did. The opportunities of last 17 years in China were unbelievable!

[fareastwarriors]

In the last few years, I've heard a lot about why America isn't that great.  These issues include racial issues, healthcare access, etc. 

 

Being a NYC resident, I still see immigrants flood into the city year after year.  My family was one of those 25 years ago.  Perhaps this is survivor ship bias, but my family has experienced upward mobility over the years.  Four kids were sent to college and we all make over six figures today and we all have some sort of equity in real estate ownership.  You may say that that's your family.  You were a part of an intensely driven family.  But is it?  I have been thinking a lot about this topic lately.  See, I came from a small town in China with a 2,000 population.  In the 1980s, it wasn't that great to be a citizen of China.  We do not have farmland like the US.  We were bordered by water on one end and a hill on the back.  Agriculture was not really an option.  It was a truly Malthusian situation with rapid population growth and not enough arable land to feed everyone. 

 

Being people who lived by the water, people found ways to leave.  There were four main destinations.  US (almost always NYC), Japan, Hong kong, and Taiwan.  Back then, the wage arbitrage was incredibly large.  If you worked for 2 days in Hong Kong, it was a month salary in China.  People used to take these month long "tours" of Hong Kong and then would proceed to wash dishes non stop.  Doctors used to do this.

 

In the long run, people who went to Hong Kong, Taiwan and Japan tend to regret it.  People who winded up in the US, on the aggregate, did much better.  Why?  Despite the fact that American in general think that "my people" all look alike (tongue in cheek humor here), the Japanese are quite xenophobic.  They do not grant permanent status to the Chinese. Frankly, they think themselves as superior.  If you don't believe me, ask around.  Japanese mixed race are treated pretty bad, i.e. Brazilian Japanese.  Japan also went through a bad deflationary environment since the 90s.  Oh, I almost forgot, you're not really allowed to legally work in Japan as a Chinese immigrant.  There is no legal mechanism for you to gain legal status over time.  That also extends to home ownership or owning a business.  If you think upward mobility is tough here in the US, try moving upward in Japan as a Chinese immigrant.  I think Caucasians have an easier time as some sort of high level executive or entertainer.  Hong Kong is a tough place. Housing prices are high.  If you want to talk wealth disparity, Hong Kong is much worse than the US. 

 

Most of my family came here in the early 90s.  We run a restaurant like many other families.  As a matter of fact, 95% of the Chinese take-out/buffet are run by people in the city where I come from.  I was essentially a business manager at the age of 11-12.  This is because my parents didn't speak English and I was the most proficient at that age.  I didn't say I was any good, but I was the best that they've got.  So let's recap this.  A Chinese immigrant went to Japan, Hong Kong, and Taiwan and he has a hard time gaining legal status and has to work off the books.  Many wind up returning back to China only to immigrate again to the US.  There are issues with owning property and businesses.  In general, the hurdles are much higher in Asia.  Anyway, I was 11-12 and my parents were rural farmers in China.  Because we were willing to work 70-80 hours a week, the US basically said "if you can turn a profit selling Chinese food to Jewish housewives on Long Island, more power to you."  Now it wasn't all sunshine.  It was hard work as I have detailed in my previous rant about the restaurant business.  Some of the regulation, fire, health, etc were tough and unfair.  At various times, I wondered why do the incumbents not care that some Chinese immigrant came here and just set up shop?  I have been witnesses to locals protesting and bashing shops set up by people from other regions trying to start business in my town back in China.  People were very protective of their local turf.  I also wondered why wasn't the US checking IDs as many businesses hired undocumented employees.  Why do the landlord rent to us?  My parents can't even pronounce the ABCs. 

 

As a 36 year old, I will venture a guess.  These opportunities are allowed because of America's business environment.  The Jewish housewives wants a meal for $5 per person because she doesn't feel like cooking.  It's good value for what she's getting.  The landlord rent to us because the Chinese take out is a proven business model and you have former farmers who understand they have to work 80 hours a week to make it work.  ICE isn't raiding businesses like us because it's too low of a return on resource.  You may feel that this is the case in every country.  Then I suggest you travel around and talk to people overseas.  In certain areas, just getting a permit can cost an arm and a leg in bribes.  While my family has been extremely frustrated by some of the bureaucracy in the US (DMV), for the most part we agree that the US is easier to do business.  Subsequent upward mobility came in the form of home appreciation.  We made some gutsy calls to take out a home equity loan to use as a down payment to buy in Queens.  It's ironic that Queens used to be the place where no white collar office worker would live in.  Even Brooklyn was dicey back then.  But areas gentrified an the people who benefited were "ethnic folks" like my family.  In Japan, this would not have happened because home ownership was not an option.  All four of the kids went to college and received merit scholarships and financial aids.  But then SUNY schools were dirt cheap and Ivy basically gave you a free tuition if household income is low.  The US university system is one of the greatest providers of upward mobility if you know how to fully utilize it.  If you want to study literature, Asian studies, or Latin American history, you maybe digging yourself a hole.     

 

What is unique is that this isn't just limited to my family.  I think that 50% of the families from my hometown owned a Chinese take out business in the US.  The outcome is systemic not one-off. 

 

I think it's great that in the US you won't be harmed for shouting obnoxious comments about the government and politicians and social injustice.  I support people's rights to exercise their first amendment rights.  At the same time, I encourage people to look at the situation objectively and understand that for those with a will, the US is likely the best environment for upward mobility.  There are some caveat being that I think the US used to attract and were able to keep some of the best and the brightest in tech, medicine, etc.  I have noticed that many are returning to their homeland because the opportunities are greater.  This could be due to a variety of reasons include "bamboo ceilings" in the US or the graduates having better network/connection/access to start up capital in their homeland.  The tech and VC scene in China and India have grown quite robust in the last 4-5 years.  Could this be the tipping point?  We will see 

 

+ 10 : Awesome story. 

 

I met a lady way back who was retired from running a "Chinese" restaurant with her family.  She owned all the buildings on half a city block in the downtown of a smallish city in Ontario.  Dont how the rest of the family fared... the cheap labour portion.  She was probaby from Hong Kong or from the mainland via Hong Kong.

 

 

Thanks for that BG. I grew in SF Bay Area. We are immigrants from outside of Xinhui. Much of my life was similar to yours except we didn't own a Chinese restaurant. I wished we did though! My mom was seamstress and my dad worked at Chinese take out places. They worked 6 or 7 days a week, no vacation. Mom was paid less than minimum wage at the time and my dad made a bit more than minimum.  Somehow they managed to save enough to buy a home in a nice town.  Long story short, my brother and I are doing just fine nowadays. He works hard in blue collar as general contractor and I work in an office. He owns a home as well a rental and it is the same for me. 

 

My family are grateful to have all these opportunities to succeed in this country.

 

But honestly, most Chinese came in 1990s to US regret they did. The opportunities of last 17 years in China were unbelievable!

 

I came in the mid-90s. I know my parents don't regret leaving. They were farmers with no education,  no connection, and no capital. I also don't think they had the business mind to make it in modern China. 

 

Within the last few years, more than 20 of my relatives immigrated here. A few did choose not to come. They have good jobs and/or businesses. I don't blame them for not coming. It's tough to move to a new country especially when you don't speak the language!

 

 

 

[Paarslaars]

"I am just a poor Canadian who knows more about the US than most Americans.... :-)"

 

Ditto. It is unfortunate that so many Americans don't think outside the box and can't see their country as does the rest of the world.

 

The human condition.  Almost all humans look at themselves in the mirror each morning and think "I look good" yet that's not what everyone else thinks.. this is culture agnostic

 

I think that is more of a male condition than a human condition :)

[rkbabang]

"I am just a poor Canadian who knows more about the US than most Americans.... :-)"

 

Ditto. It is unfortunate that so many Americans don't think outside the box and can't see their country as does the rest of the world.

 

The human condition.  Almost all humans look at themselves in the mirror each morning and think "I look good" yet that's not what everyone else thinks.. this is culture agnostic

 

I think that is more of a male condition than a human condition :)

 

So when I look in the mirror and think I look like hell, I wonder what everyone else is thinking?  :0

 

[DooDiligence]

Is America that rich?

 

You're #11 based on GDP per capita.

You're #66 based on GDP per land area.

 

The U.S. is just a big country

Quite a few countries that rank higher spend way more on healthcare.

 

Wouldn't this indicate that the health of the citizenry is tied to productivity?

 

(provided the spend is effective...)

 

Well you would have to do an actual analysis on the correlation/causation here but I'm sure there are pro's and cons to this.

Do note that in order to pay for that healthcare, most countries have a higher tax rate.  ;)

 

Agreed and Americans don't see what they get for what they pay, they only know how to complain about where they don't want funds to be spent.

[SharperDingaan]

Most wealth isn’t visible; it’s the intangibles such as ‘reputation’, ’organization’, ’attitude’, ‘work ethic’, ‘ingenuity’, ‘social space’ and ‘mobility’, etc.

 

Almost everywhere; when lots of people are crowded into either a small physical or social space, there is almost zero upward mobility. To keep the peace, you’re kept in your place, and rebellion crushed at every opportunity. Tall poppies get cut down - & kept down. But transplant those poppies into frontier land …. & they thrive like weeds. America’s social space. 

 

American genius is ability to aggressively think ‘big’, think ‘out of the box’, think ‘good enough’, think ‘us vs them’, and piss on the ‘naysayers’. Various cultures are good at different things, but very few do it this well. Thriving tall poppies do not react well to attempts to put them in check.

 

But it’s temporary, for wealth to work we have to permit change.

You cannot protect a lead until the end of the game… because this game doesn’t have an end. Your only defence is to score more goals, and raise your game faster than the opposition is. There is no ‘coasting’ – as everyone is getting better.

 

America has been pretty much ‘coasting’ ever since the Marshall Plan rebuilt Europe following the end of WWII. It has become used to sloth; & needs a shake-up, along with a spell in the gym. Change.

 

We live in interesting times.

 

SD

 

[oddballstocks]

BG2008 hit on an interesting point.  The ease of doing business in the US.

 

I've heard it said that the biggest place for shell companies is the US...we are the world's greatest tax shelter.

 

Setting up a business is easy here, it requires nothing.  You just take money and file as a sole proprietor on your taxes.  As long as you give the gov their cut they don't really care what you do.  Creating an S-Corp with a legal shield is $100, an LLC similar.  That's it, a few hundred dollars, some papers and you're on your way.

 

I had naively assumed this was true worldwide, but it isn't.  It's hard to start a business in other countries.  I've talked to Canadian investors who are shocked that you don't need to do anything to start a hedge fund in the US.  You just create a corporation for the fund, create the partner and you're on your way.  If your only client is your fund you don't need to register in any state either.  It's harder to start a RIA compared to a fund, but even then it's only a few grand in fees.  A guy off the street can be managing millions with just a few forms, that's all.

[BG2008]

BG2008 hit on an interesting point.  The ease of doing business in the US.

 

I've heard it said that the biggest place for shell companies is the US...we are the world's greatest tax shelter.

 

Setting up a business is easy here, it requires nothing.  You just take money and file as a sole proprietor on your taxes.  As long as you give the gov their cut they don't really care what you do.  Creating an S-Corp with a legal shield is $100, an LLC similar.  That's it, a few hundred dollars, some papers and you're on your way.

 

I had naively assumed this was true worldwide, but it isn't.  It's hard to start a business in other countries.  I've talked to Canadian investors who are shocked that you don't need to do anything to start a hedge fund in the US.  You just create a corporation for the fund, create the partner and you're on your way.  If your only client is your fund you don't need to register in any state either.  It's harder to start a RIA compared to a fund, but even then it's only a few grand in fees.  A guy off the street can be managing millions with just a few forms, that's all.

 

Well said Oddball.  When I was looking to set up my fund, I was amazed at how little barrier there was.  Capital was mainly the issue.  But I could've done it cheaper, I ultimately went with a more reputable firm. 

 

I am not saying that America is this magical place where people just got wealthy.  It's a place where if you pay your price through hardwork and a bit of luck, you can go from "Son of rice farmers to hedge fund manager."  Now, I've also spent time at an Ivy League school where 1/3 to 1/2 of my close circle are people with "III" or "IV" in their names and wealth has been passed down for at least 2 generations.  Having that kind of head start is immensely helpful. 

 

What I find in the US is that Goldman Sachs will hire the perceived highest GPA and most involved student to be their entry level I Banking Associate out of college regardless of whether that candidate was the son of a rice farmer or has "IV" in his name.  This is a great equalizer and opportunity for upward mobility.  Does the guys with "IV" in his name have an unfair advantage in that he gets an internship as a freshman at his uncle's hedge fund?  Absolutely!  But the field is still more equal. 

 

In terms of people who left in the 90s and regretting it.  I think there are two ways of thinking.  Those that left could have more than 1 child and if they ran a business and own some property, they can retire in their 50s.  A major plus is that the kids tend to grow up working and tend to be a lot more self sufficient. 

 

Those that stayed wind up with 1 child and a kid suffering from "little emperor" syndrome which I believe will make China rather uncompetitive going forward.  The issue is that you have a higher chance of having children who can't take care of themselves even at 30-40 years old.  Again, I think the rice farmers who left did much better.  I think the 4.0 GPA college graduate who wind up working in the Chinese take out in the US was a huge waste of human capital.  The guys who were doctors who left to work as a delivery guy missed out big.  But some scrappy farmers from my hometown did well.  Actually some of those scrappy farmers also accumulated a lot of wealth in China by investing in growth industries. 

[rkbabang]

Most wealth isn’t visible; it’s the intangibles such as ‘reputation’, ’organization’, ’attitude’, ‘work ethic’, ‘ingenuity’, ‘social space’ and ‘mobility’, etc.

 

Almost everywhere; when lots of people are crowded into either a small physical or social space, there is almost zero upward mobility. To keep the peace, you’re kept in your place, and rebellion crushed at every opportunity. Tall poppies get cut down - & kept down. But transplant those poppies into frontier land …. & they thrive like weeds. America’s social space. 

 

American genius is ability to aggressively think ‘big’, think ‘out of the box’, think ‘good enough’, think ‘us vs them’, and piss on the ‘naysayers’. Various cultures are good at different things, but very few do it this well. Thriving tall poppies do not react well to attempts to put them in check.

 

But it’s temporary, for wealth to work we have to permit change.

You cannot protect a lead until the end of the game… because this game doesn’t have an end. Your only defence is to score more goals, and raise your game faster than the opposition is. There is no ‘coasting’ – as everyone is getting better.

 

America has been pretty much ‘coasting’ ever since the Marshall Plan rebuilt Europe following the end of WWII. It has become used to sloth; & needs a shake-up, along with a spell in the gym. Change.

 

We live in interesting times.

 

SD

 

+1 again SD.  I think frontiers are an important part of what humanity requires for progress.  Humans don't progress well in large settled groups.  People get too comfortable and don't like change and worry too much about safety.  Then a small subset of people take advantage of those wants/needs and seek power with promises of fulfilling them.  That is when things get bogged down with rules/regulation/taxes/enforcement. Problems are created (real or imagined) solutions are proposed which create more rules and more problems and so on.    This is why I am rooting for Musk's Mars plans as well as Patri Friedman's Seasteading ideas.  The land mass of the planet is getting smaller (both figuratively and literally) and humanity desperately needs new frontiers.

 

[Cigarbutt]

"We live in interesting times." Absolutely.

"Change" needed perhaps more than usual.

"Progress" can be linear but can occur in leaps and bounds.

The US maybe has the best of the worst systems to allow/survive changes.

My take is that meritocracy may be more complicated but is alive and well. Essential.

Would prefer adjustments but the context may require creative destruction. Or destructive creation.

Based in Canada but have 65-70% net exposure to the US dollar. Long USA.

Long term view required.

[rb]

To get back to the original premise....

 

Basically you can look at the question from a lot of ways. But generally America isn't that "rich". America seems really rich because it's a developed country and it has a lot of people. It's population is the largest by far among developed countries and 3rd largest globally. You put all of the people together and you'll get to a lot of collective wealth.

 

But when you look at western developed countries their productivity is pretty tightly clumped together. Some are somewhat more productive than the US. Some are somewhat less productive than the US. But they're all clustered around a point. There's nothing special about the US except for having lots of people.

 

From an immigrant perspective I don't see why the US would be such a good place for immigrants. Maybe in the past but not in the current climate. I especially don't see why the US would be superior to Canada and Australia for immigrants.

[Cardboard]

"I especially don't see why the US would be superior to Canada and Australia for immigrants."

 

Canada has a terrible winter and Australia is an island in the middle of nowhere and they have very strict immigration laws. So it is U.S. or continental Europe as their favorite destination and I can understand them.

 

Cardboard

[rb]

"I especially don't see why the US would be superior to Canada and Australia for immigrants."

 

Canada has a terrible winter and Australia is an island in the middle of nowhere and they have very strict immigration laws. So it is U.S. or continental Europe as their favorite destination and I can understand them.

 

Cardboard

So now immigrants use weather as a determining factor? Most immigrants in Canada go to Montreal, Toronto, and Vancouver. Weather in Toronto and Montreal is not that different from New York - traditionally and immigrant hub. Vancouver weather is much milder.

 

Australia is a developed country with an immigration program similar to Canada. You apply, you get accepted, you have "papers" can work, start a business, etc. and you have a clear and easy path to citizenship.

[valcont]

There's nothing special about the US except for having lots of people.

I especially don't see why the US would be superior to Canada and Australia for immigrants.

 

Name one thing that had originated in Canada in the last 50 years that people from all over the world has found useful on a daily basis (Pamela Anderson excluded).

 

US is the center(or epicenter) of this planet. Weather its internet, google, Apple ,Uber, F16s, Mars missions, medical breakthroughs, shale ,politics , movies, this country rules the world. Immigrants understands this energy and the potential. And the ones that can't make it here go to other places. 

[Cigarbutt]

So why is America so rich?

And why should we invest in the US?

A possible reference is from Acemoglu's Why nations fail?

The authors take a useful look at the origins of power and prosperity.

They give a historical perspective (longitudinal) and a cross-border perspective.

Institutions matter.

Why not Adam Smith's Wealth of Nations published in 1776.

There was another famous document written by a few good men in 1776 that perhaps made sure that the "invisible hand" could operate.

The US is far from perfect, many countries are solid and viable challengers, many unknowns have yet to manifest and I really like Canada, but my long term bet is on the US.

 

 

[BG2008]

Some observations in the US

 

1) There is a general pervading thought that everyone needs to get up and go to work whether you like it or not.  This is a striking contrast to Portugal and Madrid where if you walk around at noon, there's literally no one on the street.  How do you generate productivity if no one is out about getting lunch in Madrid, the capital city of the US. 

2) Most American employees feel ashamed if they are not fully employed.  Living at home past a certain age is generally looked upon unfavorably (the Great recession has made this a bit more acceptable).  There are cultures else where it is totally okay to live with mama in your 30s.  I was reading about this about Italian men in the 1990s. 

3) Taxes are high enough to provide social safety net.  Unemployment benefits, emergency visits, etc. 

4) Structured after school programs in most suburban and rural communities that can cater to kids' interest such as volunteering, athletics, music, etc. The fact that a kid in Cornfield Iowa has exposure to amateur baseball is a big testament to the quality of life here in US. 

5) Organized sports - Kids in general learn to work together on a team.  Many Asian countries do not have the luxury of playing together on a football or baseball team.  These soft skills transfer over to business building or just learning to work as a part of a team as a follower. 

6) Taxes aren't so high that there's no longer an incentive to get rich anymore.  I think this is a serious issue in many European countries where the benefits are immense. But it takes away people's drive to work hard and improve themselves.  If you watch the document about Noma. Chef René Redzepi talk about how it's weird to try to be a 2 Michelin star restaurant in Copenhagen, Denmark.  The culture there is for people to be "equal" and "happy".  It's a weird to have exceptionalism in a country that values equality so much.  Sometimes you forget that there are countries elsewhere where the society as a whole is the equivalent of a giant participation trophy.  I don't think ill of Denmark. I would love to visit Copenhagen. 

 

These are my observations.  I guess Charlie Munger would call them common sense. 

[shalab]

Canada is a great country - I may immigrate there for the pension in my old age - if they still pay for people who immigrate. It has become very expensive in the last ten-twelve years - plan to do a summer trip this year to Banff national park and see how it looks like.

 

[rb]

There's nothing special about the US except for having lots of people.

I especially don't see why the US would be superior to Canada and Australia for immigrants.

 

Name one thing that had originated in Canada in the last 50 years that people from all over the world has found useful on a daily basis (Pamela Anderson excluded).

 

US is the center(or epicenter) of this planet. Weather its internet, google, Apple ,Uber, F16s, Mars missions, medical breakthroughs, shale ,politics , movies, this country rules the world. Immigrants understands this energy and the potential. And the ones that can't make it here go to other places.

Well if you're gonna be so obnoxious... just off the top of my head the first smartphone, Canadaarm (along with a shitload of other aerospace stuff NASA used a lot), prosthetics, digital camouflage, and my personal favorite - the wonderbra.

 

Now if you've read my post you would have picked up that US is indeed really rich because it's a developed country and it had a lot of people. For Canada to rival the US in terms of wealth it would mean that the average Canadian should have about 10 times the wealth of the average American. The size gives it a critical mass. But soon China will be "richer" than the US. Does that mean that the Chinese are "richer" than the Americans? No. Because of the size thingy.

[shalab]

Does Canada still give full pension to people that immigrate? ( like social security + medicare )

 

There's nothing special about the US except for having lots of people.

I especially don't see why the US would be superior to Canada and Australia for immigrants.

 

Name one thing that had originated in Canada in the last 50 years that people from all over the world has found useful on a daily basis (Pamela Anderson excluded).

 

US is the center(or epicenter) of this planet. Weather its internet, google, Apple ,Uber, F16s, Mars missions, medical breakthroughs, shale ,politics , movies, this country rules the world. Immigrants understands this energy and the potential. And the ones that can't make it here go to other places.

Well if you're gonna be so obnoxious... just off the top of my head the first smartphone, Canadaarm (along with a shitload of other aerospace stuff NASA used a lot), prosthetics, digital camouflage, and my personal favorite - the wonderbra.

 

Now if you've read my post you would have picked up that US is indeed really rich because it's a developed country and it had a lot of people. For Canada to rival the US in terms of wealth it would mean that the average Canadian should have about 10 times the wealth of the average American. The size gives it a critical mass. But soon China will be "richer" than the US. Does that mean that the Chinese are "richer" than the Americans? No. Because of the size thingy.