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Sunday, March 11, 2018

China Views the US as a Mature Economy but The U.S. May Be Moving to a Higher Performance Platform

China is following suite with the American economy. While their growth is higher they seek to raise overall consumption and appear to be opening up their borders to more imports. At least this is in theory. They are seeking to mimic the American economy in many ways but the U.S. is poised to move onto the next level of economic development in the next decade.

While Chinese technology and innovation has risen they are still primarily using cheaper labor and costs to attract manufacturing work. The American manufacturing environment is more expensive but also more advanced.

While we can't say the American economy is stagnant we can say that it doesn't experience as high growth as emerging economies. This stagnation may change the way we invest our income in technology and labor efficiencies.

We should first consider that we have low level of unemployment and so labor will get more expensive as wages rise. It is a basic law of supply and demand. This pressure will push manufacturers to invest in technology.

That investment will also require different types of infrastructure that can support more data for block chain processing, artificial intelligence, digitization, and higher levels of data streaming. More money will move into changing these data highways for more capacity.

The next economy improve labor efficiency and profit margins with increased productivity across multiple sectors of society. The greatest value will be created through design and innovation and not necessarily through simple labor power. Big data will become part of this game as it creates and adjusts with ever more sophistication to the market.

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