Comment by derriz
1 day ago
> 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.
What I mean is that the ability of the domestic economy to produce, with automation, is constrained mainly by demand and raw materials. Producing plastic toys would not make a dent in the productive capacity of the US and in fact would increase it by bringing the supply chain and expertise back to the US. This is obvious to anyone who hasn't had the misfortune of studying economics or listening to people who have. (I studied economics briefly in college.)
But of course, as I'm sure you recognize, that isn't the main point. The main point is that now we aren't even able to dominate high value manufacturing like microchips, despite being told we were only giving away the low end.
> But of course, as I'm sure you recognize..
I do not. When you say, “what I mean is economic capacity is constrained by demand and raw materials” - that’s a significant deviation from your claim that economic capacity is infinite which is why I asked you about it. I’m not a mind reader.
But even this claim makes no sense with your toy factory example. Building such a factory consumes no land, no construction workers or engineers’ time, requires no energy to construct or operate, requires no human effort at all to operate and all this can be done for zero cost?
Can you point to any example of such a factory anywhere in the world? I mean if this were possible, why would places like sub-Saharan not be full of such factories?
lol yeah ok man
I think the parent is referring to heavy financialisation of the economy in the West. As we've recently seen, such economy can grow quite unconstrained by the material concerns such as factories, energy or workers.
I’m not sure I understand? Financial services and insurance make up about 8% of US economy and 5% of that in Europe. I’ve seen no signs that these sectors or the economies they’re part of are growing in an unconstrained way?