Why is the US economy so resilient? | Counting the Cost

Geopolitical tensions, the pandemic's lingering aftershocks, high inflation and steep borrowing costs. Countries across the globe have faced multiple crises for months.

And just last year, the world's biggest economy, the United States, was at risk of recession.

Today, its gross domestic product is growing faster than expected. Stocks are soaring. And the job market is hot.

The US economy is not just strong. It has also powered ahead of the European Union, the United Kingdom, Japan and other advanced economies.

Why are farmers across Europe protesting?

Plus, North Korea looks to false eyelashes to shore up its economy.


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[LightofBankai]

The US is the most diverse country in the world. Diversity comes with all talents.

[yekobee]

I when forecasters are like "people are still living off their stimulus checks, " like seriously how long do you think $2000 last?

[erniekeller]

The US grows its own food and energy supply and only uses its own currency to buy what it needs from the world. It's chief trading partners are on its borders.

The reserve currency thesis one hears most often is backwards. The strength and size of the US economy is not because of its reserve currency status. That status is because of the size and strength of the US economy.

[Miya-ubqn]

She asks pertinent and smart questions

[drkyasmar]

Because the US dollar is the basis of prices of basic commodities that the world needs.

[Playtime-luwj]

Constant and consistent Innovation is why…

[tsengenhu]

The dollar is the reserved currency and is the basis for international trades. This allows US to print dollar continuously to fund rescues from banking crisis, wars and booming stock markets.

[greekyroman]

Wow, I wish they were fighting for higher food quality controls in the United States.

[psikeyhackr]

They ignore the depreciation of durable consumer goods. When have you heard an economist talk about the Net Domestic Product?

[Richardcarlett]

The FED lowered its inflation objective to less than 2% in 2012. They changed the target to a long-term average of 2% inflation. Because long-term interest rates are set at inflation plus a profit margin, the implication is lower interest rates. I consider the current rising interest rate to be a very serious issue it will cause more investors to withdraw from the market. But then despite the severe bear market, I am aware of certain investors that continue to earn over $365, 000. Wish I could accomplish that.

[francoislechanceux]

The USA is the most underestimated country in the world by all medias be they american, western or from around the world. Difficult to say why? Maybe because there's too much instant information on the USA economy from that country.

[BufordTGleason]

Because the people participating in the prosperity have accumulated all the wealth so the macro economic numbers which we use to judge the economy look OK

The fact that obtaining a living wage from employment is getting more difficult because to prop up the economy and profits and the stock market, they simply don’t pay what is required to maintain workers lifestyles to keep up with rising costs everywhere

[Tomahawk-wc]

Because the big guy worked hard with his staff to make it happen 😎😎😎🇺🇸🇺🇸🇺🇸💰💰💰💰🤠🤠

[farahmo]

The US have the dollar printing machine, whereas almost all other countries have to borrow from the print masters and pay interest on top. How fascinating!!

[Kipro-jm]

I really think, in my laymans language, the reselience of an economy should be measured on how comfortable the lowest are living, i.e, mainly rent and food purchase power.

[MrGravity]

80% equities 20% cash. I plan to take advantage of the s&p 500 as leading indicators predict above 10% rise by this year, my only issue is how to properly allocate a large stock/bond portfolio for substantial gains at minimum risk.

[darius]

What happenes if you just consistently transfer debt from one place to another while it incurres interest, and then call it asset and income generation.

[melquisedecrivers-suarez]

The USA is energy independent so that has to help, many big businesses are moving in

[shoppinmadnesz]

*Also, the US could be self-sufficient in pretty much everything from food, gas, natural resources, manufacturing, etc (with the exception of maintaining trading partners with our northern/southern neighbors). This also means we've never been at risk of invasion (if you don't count the border crisis) that could lead to war on American soil. Plus the dollar is the world's reserve currency. All in all, this makes us less susceptible to the plights of other countries. If Russia took over all of Ukraine tomorrow, we'd more or less be ok compared to the EU (like what happened with the energy crisis)*

[murk]

Why are people so triggered by the US economy doing so well? It is very true in the US if you want a job they are in abundance. No one is starving here.