Friday, September 10, 2010
In a race between the tortoise and the hare, the tortoise wins. The United States is like the hare with a huge lead in standard of living with superior capital goods and technology. We are resting while the rest of the world slowly builds infrastructure equal to ours. On the information highway, it's like we are parked at a rest stop while semis carrying technology cargo zooms on by. This is a simplification of course. But the global GDP pie is being divided among more and more nations who can complete with the United States. Robert Frank wrote about winner take all markets. Those countries or individuals with superior technology will be the winners.