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musicgold1
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Joined: March 25th, 2008, 3:40 pm

Wealth of a nation

August 8th, 2011, 4:33 pm

Hi,My quesiton is about the following quote from this article.What does the word 'wealth' exactly mean here??Despite losing its mint rating, the U.S. is extremely unlikely to default, given its enormous wealth and potential to raise tax revenue,? said Sherry Cooper of BMO Capital Markets." Thanks.
 
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quantmeh
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Wealth of a nation

August 8th, 2011, 6:24 pm

wealth of a nation as per Adam Smith is in its productivity. US is still very productive. I see the second leg of our issues in decreasing manufacturing productivity. we're still among the best or the best, but the issues are accumulating. we stopped producing a lot of goods citing high labor costs, which is b/s. we should produce more things in USA but use sophisticated automation instead of labor. if we're efficient, we can produce t-shirts better than in China for less costs, and flood everypne with our textile. the problem's that we're on the different path at the moment.
 
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BullBear
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Wealth of a nation

August 9th, 2011, 10:08 am

wealth of a nation = NPV(Nation Assets) - NPV (Nation Debts) You can be extremely productive but if you hold a ton of external debts then, in practice, you are not very wealthy unless you rob foreigners (default)! - Domestic debt is another issue: Public vs. Private wealth. In Portugal, the Public sector ruined the economy by robing the private sector. The public sector in Portugal spends 50% of GDP.- Income Distribution is another problem: In the long-term income inequality reduces the potential value of assets (future cash flows of the economy - future GDP). This is also a huge problem in Portugal - which has an Oligarchic society.
Last edited by BullBear on August 8th, 2011, 10:00 pm, edited 1 time in total.
 
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ThinkDifferent
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Wealth of a nation

August 9th, 2011, 9:08 pm

QuoteOriginally posted by: quantmehwealth of a nation as per Adam Smith is in its productivity. US is still very productive. http://www.bloomberg.com/news/2011-08-0 ... -rise.html
 
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tags
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Joined: February 21st, 2010, 12:58 pm

Wealth of a nation

August 12th, 2011, 11:01 pm

quantmeh is right, you should get back to the adam smith principles
 
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TheNaif
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Wealth of a nation

September 10th, 2011, 12:03 am

man don't you have an oxford dictionary in your school???