Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

How the U.S. Can Sustainably Become the World’s Top Economy Again

admin by admin
December 12, 2014
in Uncategorized
0
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

by Carl Gibson

Appeared in Reader Supported News 10 December 2014

hina has overtaken the U.S. as the world’s top economy. But in taking a few examples from China, as well as investing in jobs that stay in America and taking steps to insure economic stability for the majority of American workers, the U.S. can come out on top again. And we can do it without having to decimate working people or the environment.

Much of the growth China has experienced is through Chinese urban centers becoming more connected than ever due to China’s investments in high-speed rail (HSR). Since 2008, China has built 6,800 miles of track for their HSR systems, allowing, for example, the 820-mile distance between Shanghai and Beijing – roughly the same distance as between Chicago and New York City — to be covered in just five hours, for less than the cost of a plane ticket. China is also connecting provincial communities in the Western region to major urban centers, giving rural residents easier access to urban jobs.

In the 100 Chinese cities that are connected by the HSR network, there hash been a 59 percent increase in market potential, meaning that HSR is making it easier than ever for companies, employees, customers, and new markets to reach one another. By 2020, China will have built 12,000 miles of high-speed rail, with 4 lines going east-west and 4 lines going north-south. The rapid growth of China’s economy since 2008 correlates almost directly to the growth of China’s HSR infrastructure.

The U.S. is currently piloting high-speed rail systems in California, New York, Florida, Michigan, and Illinois. The California rail network, which connects the San Francisco Bay Area to Los Angeles, is expected to create an estimated 450,000 new permanent jobs as a result of HSR car manufacturing, track laying, and maintenance. The New York rail line will connect New York City with Albany, the capital city, along I-87, and major cities along the I-90 corridor all the way to Buffalo and Niagara Falls. The Florida HSR line will connect Miami with Orlando, both of which are urban centers central to Florida’s economy. The Illinois line will allow direct, traffic-free travel between Chicago and Saint Louis, which is normally a 5-hour drive. That same rail network will connect Chicago to Detroit, shaving 2 and a half hours off a standard drive on the interstate.

Existing high-speed rail projects, as well as potential future projects that could connect, for example, Denver to Salt Lake City, or Southern economic hubs like Houston, New Orleans, and Jacksonville to one another, will bring new jobs and business to economically-deprived communities. As The Atlantic pointed out, the most significant economic benefit will come not to major population centers being connected by a non-stop train ride, but to cities several hours removed from major urban centers. Double-digit unemployment in California’s San Joaquin Valley would be eased with HSR construction, as new businesses would open to accommodate new workers in the region. Workers in the valley would also have access to more jobs in the Bay Area and Los Angeles thanks to the rail systems.

While detractors would point to the high cost of these HSR systems, such as the $68 billion projected cost of California’s Los Angeles-San Francisco system, as an economic drain, the projects could easily be funded by two additional taxes that would affect only the top .01 percent of Americans. According to The New York Times, a one percent sales tax on basic financial transactions like stocks, bonds, futures, and options would bring in $350 billion a year. Bringing the inheritance tax back to Clinton-era levels would bring in another $50 billion each year. This combined $4 trillion every ten years would be more than enough to fund high-speed rail construction across America for decades to come.

These HSR proposals will take more cars off the road, dramatically decreasing CO2 output in major urban centers if the electricity to run those trains is produced by green energy. California and Florida get lots of sunshine. Flat expanses like Illinois and areas close to water like the Great Lakes Region of upstate New York get plenty of wind. An added benefit is the massive potential for job growth in producing the green energy it would take to power HSR lines.

Photovoltaic energy by way of solar panels and wind energy manufacturing is on track to create exponentially more jobs than in the oil and gas sector over the next decade. According to the International Renewable Energy Agency, the U.S. employs 625,000 people in the renewable energy sector. China employs 2.6 million. As oil production continues to slow down, those numbers will only grow larger. Over the next several decades, states investing in wind and solar power will experience dramatic job growth in the manufacturing, installation, transportation, and maintenance of wind turbines and solar panels. Prominent investors like Warren Buffett are betting big on the industry’s long-term growth, as Berkshire Hathaway has already invested nearly $17 billion in wind, solar, and geothermal energy and aims to double that investment over the next decade.

In addition to investment in a nationwide high-speed rail network and green energy, a big economic boost could come from meeting the demands of workers striking for a $15 an hour minimum wage with the right to unionize. The December 4th fast food and retail workers strike, which took place across 190 U.S. cities, was the largest to date, and came on the heels of a nationwide Black Friday strike and boycott campaign that led to Black Friday sales plummeting by 11 percent. Hundreds of thousands of workers have called on their employers, most of which are global corporations making billions in profit, to pay workers a minimum of $31,000 a year, and to grant them the right to collectively organize for fairer working conditions and benefits. And they’ve demonstrated they have the power to shut the fast food economy down for an entire day in nearly every major American city, costing these companies millions in revenue.

If these workers got the raise they were asking for, it would greatly increase the spending power of over a million and a half workers, as those workers immediately spend that money in their local economies. The Bureau of Labor Statistics estimates that 1.6 million workers earned $7.25 an hour, for an annual salary of roughly $15,080, meaning $24.1 billion is cycled into communities. If those same workers made $15 an hour, it would mean $49.6 billion is cycled back into local economies every year – more than double the original economic boost to those workers’ communities. This is money that goes directly to local businesses, which would have a need to hire more workers to meet the increased demand.

This isn’t just speculation, but fact – businesses that pay workers a living wage are statistically more profitable than those that don’t. Costco, which pays workers an average of $20 an hour, is more profitable than Walmart. In-N-Out Burger, which pays a starting wage of $10.50 an hour, is booming while McDonalds pays employees minimum wage and is seeing some of its weakest sales numbers yet. Moo Cluck Moo, a fast food restaurant in Detroit, pays workers $15 an hour and is seeing increased sales and is planning new locations. When a businesses has happy workers, they see a lower employee turnover rate. A lower employee turnover rate means these businesses save money by not having to constantly train new hires. Paying workers a fair, living wage is good for business, and will grow the economy over the long term.

It may take a decade or two, but if the U.S. implemented these solutions tomorrow, we would be on track to re-take the top spot in the world’s fastest-growing economies. And we could do it while preserving the Earth for future generations and treating working people with the dignity they deserve.

Econintersect note: Hat tip to Rob carter for bringing this article to our attention.

Previous Post

Joe Sixpack’s Situation in 3Q2014: Joe Continues to Feel Poorer

Next Post

The Traps of Support and Resistance

Related Posts

Ban CBDC Now! – Florida Governor Ron DeSantis
Economics

Ban CBDC Now! – Florida Governor Ron DeSantis

by John Wanguba
March 21, 2023
Microsoft Offers EU Remedies Seeking Approval On Activision Deal
Business

Microsoft Offers EU Remedies Seeking Approval On Activision Deal

by John Wanguba
March 21, 2023
Banking Crisis: Credit Suisse Held Meetings Last Weekend On Scenarios For Bank - Sources
Business

Banking Crisis: Credit Suisse Held Meetings Last Weekend On Scenarios For Bank – Sources

by John Wanguba
March 21, 2023
USDC Issuer Circle Chooses France For Its European Expansion
Econ Intersect News

USDC Issuer Circle Chooses France For Its European Expansion

by John Wanguba
March 21, 2023
OKX To Stop Operations In Canada By June 22, 2023
Business

OKX To Stop Operations In Canada By June 22, 2023

by John Wanguba
March 20, 2023
Next Post

The Traps of Support and Resistance

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe finance FTX inflation investment market analysis Metaverse mining NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Ban CBDC Now! – Florida Governor Ron DeSantis
  • Microsoft Offers EU Remedies Seeking Approval On Activision Deal
  • Banking Crisis: Credit Suisse Held Meetings Last Weekend On Scenarios For Bank – Sources

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish