The Indicator from Planet Money Why the US economy is still the envy of the world
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Dec 14, 2024 
Simon Rabinovitch, an Economist for The Economist, discusses why the U.S. economy thrives despite global challenges. He highlights structural advantages like productivity, business dynamism, and technological progress. The Great Shale Revolution's impact on stability is explored, showing how wages in underserved areas can outperform those in developed nations. Rabinovitch also examines the dominance of the U.S. stock market and the dollar's global status, revealing facets that contribute to America's economic strength amidst potential risks from political shifts.
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US Productivity Growth
- US productivity has increased by roughly 70% since 1990, compared to 40-50% in other rich nations.
- This difference is driven by business dynamism, capital investment, and tech adoption.
Energy Independence
- The shale revolution made the US the top producer of oil and natural gas, insulating it from global energy volatility.
- This helps stabilize gas prices and supports American businesses.
Stock Market Dominance
- The US stock market, comprising 60% of the global market, attracts investment and fuels innovation.
- This dominance creates a virtuous cycle for the US economy.