Chapter Five Hundred and Nineteen The Status Quo of the U.S. Economy
"Brother Wang, what are you doing at the School of Economics? Are you Professor Wilson's right-hand assistant?"
"What kind of right-hand assistant? It's much worse. I'm just an ordinary analyst. My main job now is to study!"
The other party shook his head and said.
"Brother Wang, they say that now is the golden age of economic development in the United States. What do you think?"
Liu Lang suddenly asked.
"This little guy is truly a genius!"
Louis Wang thought to himself.
Wilson specifically told him something about Liu Lang before he came out, saying that this kid was one of the smartest geniuses in the world. Even though he was only six years old, he had already written the book The Wave of the Third Industry.
A bestseller in the economics category, this book was officially released in May last year and has published nearly 300,000 copies in just ten months.
Three hundred thousand copies is not a lot, but you have to look at what type of novel it is. If it is a detective novel like Sherlock Holmes, this achievement can only be regarded as passing, but this is a highly professional economic book.
It is a miracle that three hundred thousand copies were published in ten months. You must know that the last best-selling economic book "The Third Revolution" was published in the first year.
With less than 500,000 copies published, it has become one of the best-selling economic books in history. This was achieved with the recommendation of many media. This book on the third industry wave did not receive such treatment, but its results were not much worse.
And as time goes by, the sales of this book will increase at a faster rate, and it is likely that it will sell half a million copies this year.
This book has also attracted the attention of many companies and economists in the United States. Even national policy research institutions have begun to study this book. Now the critics still very much recognize the main idea of the book and feel that the future
The world will be an era dominated by the service industry, but the book’s emphasis on the Chinese market has caused controversy. Some people think it is very reasonable, but many people think it is to put gold on China’s face, and the purpose is
Let the Chinese market have an advantage in trade.
But in any case, this book has gradually caused a craze in the service industry era. At the same time, many people are asking who the author named Liu Lang is, but Wilson has never answered directly, only saying that this
The author is a student in China.
And the best-selling author is now sitting next to Louis. His small stature requires a child safety seat. Is such a child really the author?
Louis really didn't believe it, but the conversation between the two just reminded him of an old Chinese saying: You can't tell a person by his appearance!
Now that he heard Liu Lang asking about the U.S. economy, he immediately became energetic and thought for a moment before speaking.
"In fact, the so-called golden age is somewhat untrue. It should be the late 1950s and the entire 1960s. That period was the "golden age" of the U.S. economic development. The economy continued to grow steadily, and the inflation rate and unemployment rate
reduced to very low levels.
This can be seen from the stock market. Today, the U.S. stock market has experienced a bull market for thirty years, especially from two trillion US dollars in the 1980s to nearly six trillion US dollars this year.
It has tripled in a matter of seconds. Especially since 1982, the stock price trend has continued to rise, and the trading volume has also increased rapidly. One day in January this year set a record of annual daily trading volume of 180 million shares.
, it’s really amazing.”
Lewis said slowly.
"Oh, doesn't this further prove that the U.S. economy is still growing?"
Liu Lang asked back.
"No, that's not the case. Such a long bull market is not always smooth sailing. For example, between 1973 and 1975, the dollar-centered Bretton Woods system collapsed, causing inflation to rise and unemployment to be very high.
In addition, the arms race between the United States and the Soviet Union at that time greatly weakened the economic power of the United States, causing its international and even domestic market share to continue to decline, and its foreign trade deficit and budget deficit to continue to rise.
Later, as the U.S. government relaxed controls on the financial market and stimulated tax cuts for stock investments, huge amounts of international hot money poured into the U.S. stock market, which promoted the continued rise in stock prices. Therefore, the development speed of the stock market far exceeded that of the actual economy.
Growth rate, the development speed of financial transactions has greatly exceeded the development speed of world trade.
The reason why the market value of the stock market has developed so rapidly is because of the high profitability of the stock market. A large amount of international hot money and private capital continue to flow into the stock market. These funds engage in speculative transactions in the stock market in pursuit of short-term profits, which has caused the false prosperity of the stock market.
, In fact, the economic development of the United States has been sluggish in recent years. It is only the prosperity of the stock market that gives people an illusion. If the United States wants to continue to expand its economy, it must find another foothold, such as expanding the market and reducing prices.
cost!"
Liu Lang nodded slightly after hearing this. Although he had not done much research on the American economy in the 1970s and 1980s in his previous life, the other party's remarks were vaguely consistent with the U.S. stock market crash that would come soon, which was enough to prove that his conclusion was correct.
"Brother Wang, what you said does make sense. I believe you have read my book The Wave of the Third Industry. In the book, I predicted that China's vast market and cheap labor force will be the driving force for world economic development in the next thirty years.
One, this actually indirectly shows that the economic development of the United States has fallen into a bottleneck, and we have coincided with each other!"
Liu Lang opened his mouth and said.
"Yes! And the United States not only needs to pay attention to domestic economic development. As the leader of the world economy, it also needs to pay attention to Europe and other regions. It also needs to formulate countermeasures against the Soviet Union's policies. These will cost the United States a lot of money, and
The United States itself should have noticed this, so it is actively making good relations with China. Of course, I personally feel that the U.S. government has not truly realized China’s strong potential!”
At this time, Louis Wang was more like a senior researcher of the world situation.
"Haha, Brother Wan, it seems that you still support the conclusions in my book."
"I feel ashamed to say that I didn't think of this last year. It was only after reading your book that I suddenly realized that China's strong potential is exactly the source of power I am looking for. Of course, this does not mean that China can really become the world economy.
The driving force for development depends on the decision-making of the country's top leaders. If we continue to open up, it is very possible."
"Expert, this Lewis already has the potential to become a famous economist!"
In just a few conversations, Liu Lang discovered a talent.
This is also easy to understand. Harvard University itself is one of the top universities in the world, and Harvard Business School and School of Economics are the two most difficult majors in this university. Chinese people are still subject to a certain degree of discrimination in the United States.
He was admitted to the School of Economics under unfavorable conditions, which in itself shows his talent and hard work. Moreover, after graduation, he became a staff member of the affiliated Economic Research Institute, which also shows his ability.