Quote:
Originally Posted by Truenorth00
Yes more wisely. Their Inflation Reduction Act and CHIPS Act are actually generating real industrial gains. We are barely funding a few battery plants while not developing the rest of the supply chain. And for better or worse, their large military spending has substantial benefits. Notably heavy R&D, sustainment of domestic industry and the generation of hundreds of thousands of skilled workers every year. I've said this before...
...So yeah, their defence spending delivers dividends that most of the rest of the world just can't comprehend.
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I'm the first person to say that Canadian corporations are to blame for our low productivity rates and lack of innovation, and government spending money on seniors rather than on future generations, and keeping wages and productivity low by importing millions of unskilled immigrants is exactly the worst thing to do right now.
That said, the US is just in an exceptional position that no other country is in, and we can't emulate them no matter how hard we try.
They can run enormous deficits because they have the world's reserve currency, and that reserve currency is backed by the world's most powerful military. So you run a deficit to outspend everyone else on defence to allow your military to be stronger than everyone else which allows you to run a deficit.
One of the positive side effects is that, once in a blue moon, you develop a technological game changer that helps your companies gain a huge edge over their competition around the world, and your strength perpetuates.
We can't play that game.