Comment by recursivedoubts
2 hours ago
economic capacity is effectively infinite at this point, demand and raw inputs are the constraining factors (suggested reading: social credit (canadian not chinese)
Not making cheap plastic toys means you don't have the supply chain and expertise around plastics molding, which means you eventually lose the ability to produce housing for electronics, which means you eventually lose the ability to produce electronic components, etc. And as we see, this is exactly what has happened, just like we saw happen in Florence, England, etc. before when the elites became more interested in financialization/usury than in production.
I'm american and I don't think america is the clear global leader in technical innovation, particularly looking at electrification. We are pretty good at R&D but have lost a large part of our ability to manufacture due to the supply chain shift.
R&D is fine and all, but we've got (or had) a middle class to feed, and for the last fourty years we've been faking that with credit.
> economic capacity is effectively infinite at this point
This is a bizarre claim?
The total ability of an economy to produce goods and services is most certainly finite. For it to be infinite, we'd need infinite workers, infinite factories, infinite raw materials, infinite land, infinite infrastructure, infinite energy, etc.