America, for all of its bad points as well as its good ones, is still the world trend-setter — which title it acquired decisively in 1944 after imposing the Bretton wood Agreement on the rest of the world — with no other country on the horizon yet. In my paper today, Matthew Lynn summarises what its bad points are.
Firstly, the labour participation rate — the proportion of the fit and able adult population who have given up looking for jobs — is growing smartly.
Secondly, wages in real, non-inflated terms, have hardly grown at all, and even then only in ‘hot spots’.
Thirdly, business is becoming over-regulated. In Tennessee, for example, you can’t shampoo someone’s hair in a barber’s shop without a licence, which normally requires 300 hours of training,
Fourthly, corporate tax rates are now the highest in the world — with the exception of Chad and the Arab Emirates. American businesses are now moving abroad.
Fifthly, the number of business closuress every year now equates with the number of start-ups.
Matthew Lynn likens America to becoming a ponderous social democracy such as the European union and which will be overtaken by a growing China. My own interpretation is that China might not ever reach the same standard of life as America, and that America itself, along with several more countries, is now beginning to adapt to an altogether new occupational era in which genetics-based materials (automated) production and genetics-based advanced services in health care and bespoke education will gradually become the norm.