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<blockquote data-quote="guido-f" data-source="post: 1798636" data-attributes="member: 15396"><p><span style="font-size: 15px"><strong>Land, Labor and Capital</strong></span></p><p>All economic activity is fueled — and limited — by the availability of three things: land, labor and capital. All three factors indicate that the United States has decades of growth ahead of it, especially when compared to other powers.</p><p></p><p><span style="font-size: 12px"><strong>Land</strong></span></p><p>The United States is the least densely populated of the major global economies in terms of population per unit of usable land (Russia, Canada and Australia may be less densely populated, but most of Siberia, the Canadian Shield and the Outback is useless). The cost of land — one of the three ingredients of any economic undertaking — is relatively low for Americans. Even ignoring lands that are either too cold or too mountainous to develop, the average population density of the United States is only 76 people per square kilometer, one-third less than Mexico and about one-quarter that of Germany or China.</p><p></p><p>And it is not as if the space available is clustered in one part of the country, as is the case with Brazil's southern interior region. Of the major American urban centers, only New Orleans and San Diego cannot expand in any direction. In fact, more than half of the 60 largest American metropolitan centers by population face expansion constraints in no direction: Dallas-Fort Worth, Philadelphia, Washington, Atlanta, Phoenix, Minneapolis-St. Paul, St. Louis, Denver, Sacramento, Cincinnati, Cleveland, Orlando, Portland, San Antonio, Kansas City, Las Vegas, Columbus, Charlotte, Indianapolis, Austin, Providence, Nashville, Jacksonville, Memphis, Richmond, Hartford, Oklahoma City, Birmingham, Raleigh, Tulsa, Fresno and Omaha-Council Bluffs. Most of the remaining cities in the top 60 — such as Chicago or Baltimore — face only growth restrictions in the direction of the coast. The point is that the United States has considerable room to grow and American land values reflect that.</p><p></p><p></p><p><span style="font-size: 12px"><strong>Labor</strong></span></p><p>Demographically, the United States is the youngest and fastest growing of the major industrialized economies. At 37.1 years of age, the average American is younger than his German (43.1) or Russian (38.6) counterparts. While he is still older than the average Chinese (34.3), the margin is narrowing rapidly. The Chinese are aging faster than the population of any country in the world save Japan (the average Japanese is now 44.3 years old), and by 2020 the average Chinese will be only 18 months younger than the average American. The result within a generation will be massive qualitative and quantitative labor shortages everywhere in the developed world (and in some parts of the developing world) except the United States.</p><p></p><p>The relative youth of Americans has three causes, two of which have their roots in the United States' history as a settler state and one of which is based solely on the United States' proximity to Mexico. First, since the founding populations of the United States are from somewhere else, they tended to arrive younger than the average age of populations of the rest of the developed world. This gave the United States — and the other settler states — a demographic advantage from the very beginning.</p><p></p><p>Second, settler societies have relatively malleable identities, which are considerably more open to redefinition and extension to new groups than their Old World counterparts. In most nation-states, the dominant ethnicity must choose to accept someone as one of the group, with birth in the state itself — and even multi-generational citizenship — not necessarily serving as sufficient basis for inclusion. France is an excellent case in point, where North Africans who have been living in the Paris region for generations still are not considered fully "French." Settler societies approach the problem from the opposite direction. Identity is chosen rather than granted, so someone who relocates to a settler state and declares himself a national is for the most part allowed to do so. This hardly means that racism does not exist, but for the most part there is a national acceptance of the multicultural nature of the population, if not the polity. Consequently, settler states are able to integrate far larger immigrant populations more quickly than more established nationalities.</p><p></p><p>Yet Canada and Australia — two other settler states — do not boast as young a population as the United States. The reason lies entirely within the American geography. Australia shares no land borders with immigrant sources. Canada's sole land border is with the United States, a destination for immigrants rather than a large-scale source.</p><p></p><p>But the United States has Mexico, and through it Central America. Any immigrants who arrive in Australia must arrive by aircraft or boat, a process that requires more capital to undertake in the first place and allows for more screening at the point of destination — making such immigrants older and fewer. In contrast, even with recent upgrades, the Mexican border is very porous. While estimates vary greatly, roughly half a million immigrants legally cross the United States' southern border every year, and up to twice as many cross illegally. There are substantial benefits that make such immigration a net gain for the United States. The continual influx of labor keeps inflation tame at a time when labor shortages are increasingly the norm in the developed world (and are even beginning to be felt in China). The cost of American labor per unit of output has increased by a factor of 4.5 since 1970; in the United Kingdom the factor is 12.8.</p><p></p><p></p><p>The influx of younger workers also helps stabilize the American tax base. Legal immigrants collectively generate half a trillion dollars in income and pay taxes in proportion to it. Yet they will not draw upon the biggest line item in the U.S. federal budget — Social Security — unless they become citizens. Even then they will pay into the system for an average of 41 years, considering that the average Mexican immigrant is only 21 years old (according to the University of California) when he or she arrives. By comparison, the average legal immigrant — Mexican and otherwise — is 37 years old.</p><p></p><p>Even illegal immigrants are a considerable net gain to the system, despite the deleterious effects regarding crime and social-services costs. The impact on labor costs is similar to that of legal immigrants, but there is more. While the Mexican educational system obviously cannot compare to the American system, most Mexican immigrants do have at least some schooling. Educating a generation of workers is among the more expensive tasks in which a government can engage. Mexican immigrants have been at least partially pre-educated — a cost borne by the Mexican government — and yet the United States is the economy that reaps the benefits in terms of their labor output.</p><p></p><p>Taken together, all of these demographic and geographic factors give the United States not only the healthiest and most sustainable labor market in the developed world but also the ability to attract and assimilate even more workers.</p></blockquote><p></p>
[QUOTE="guido-f, post: 1798636, member: 15396"] [SIZE=4][B]Land, Labor and Capital[/B][/SIZE] All economic activity is fueled — and limited — by the availability of three things: land, labor and capital. All three factors indicate that the United States has decades of growth ahead of it, especially when compared to other powers. [SIZE=3][B]Land[/B][/SIZE] The United States is the least densely populated of the major global economies in terms of population per unit of usable land (Russia, Canada and Australia may be less densely populated, but most of Siberia, the Canadian Shield and the Outback is useless). The cost of land — one of the three ingredients of any economic undertaking — is relatively low for Americans. Even ignoring lands that are either too cold or too mountainous to develop, the average population density of the United States is only 76 people per square kilometer, one-third less than Mexico and about one-quarter that of Germany or China. And it is not as if the space available is clustered in one part of the country, as is the case with Brazil's southern interior region. Of the major American urban centers, only New Orleans and San Diego cannot expand in any direction. In fact, more than half of the 60 largest American metropolitan centers by population face expansion constraints in no direction: Dallas-Fort Worth, Philadelphia, Washington, Atlanta, Phoenix, Minneapolis-St. Paul, St. Louis, Denver, Sacramento, Cincinnati, Cleveland, Orlando, Portland, San Antonio, Kansas City, Las Vegas, Columbus, Charlotte, Indianapolis, Austin, Providence, Nashville, Jacksonville, Memphis, Richmond, Hartford, Oklahoma City, Birmingham, Raleigh, Tulsa, Fresno and Omaha-Council Bluffs. Most of the remaining cities in the top 60 — such as Chicago or Baltimore — face only growth restrictions in the direction of the coast. The point is that the United States has considerable room to grow and American land values reflect that. [SIZE=3][B]Labor[/B][/SIZE] Demographically, the United States is the youngest and fastest growing of the major industrialized economies. At 37.1 years of age, the average American is younger than his German (43.1) or Russian (38.6) counterparts. While he is still older than the average Chinese (34.3), the margin is narrowing rapidly. The Chinese are aging faster than the population of any country in the world save Japan (the average Japanese is now 44.3 years old), and by 2020 the average Chinese will be only 18 months younger than the average American. The result within a generation will be massive qualitative and quantitative labor shortages everywhere in the developed world (and in some parts of the developing world) except the United States. The relative youth of Americans has three causes, two of which have their roots in the United States' history as a settler state and one of which is based solely on the United States' proximity to Mexico. First, since the founding populations of the United States are from somewhere else, they tended to arrive younger than the average age of populations of the rest of the developed world. This gave the United States — and the other settler states — a demographic advantage from the very beginning. Second, settler societies have relatively malleable identities, which are considerably more open to redefinition and extension to new groups than their Old World counterparts. In most nation-states, the dominant ethnicity must choose to accept someone as one of the group, with birth in the state itself — and even multi-generational citizenship — not necessarily serving as sufficient basis for inclusion. France is an excellent case in point, where North Africans who have been living in the Paris region for generations still are not considered fully "French." Settler societies approach the problem from the opposite direction. Identity is chosen rather than granted, so someone who relocates to a settler state and declares himself a national is for the most part allowed to do so. This hardly means that racism does not exist, but for the most part there is a national acceptance of the multicultural nature of the population, if not the polity. Consequently, settler states are able to integrate far larger immigrant populations more quickly than more established nationalities. Yet Canada and Australia — two other settler states — do not boast as young a population as the United States. The reason lies entirely within the American geography. Australia shares no land borders with immigrant sources. Canada's sole land border is with the United States, a destination for immigrants rather than a large-scale source. But the United States has Mexico, and through it Central America. Any immigrants who arrive in Australia must arrive by aircraft or boat, a process that requires more capital to undertake in the first place and allows for more screening at the point of destination — making such immigrants older and fewer. In contrast, even with recent upgrades, the Mexican border is very porous. While estimates vary greatly, roughly half a million immigrants legally cross the United States' southern border every year, and up to twice as many cross illegally. There are substantial benefits that make such immigration a net gain for the United States. The continual influx of labor keeps inflation tame at a time when labor shortages are increasingly the norm in the developed world (and are even beginning to be felt in China). The cost of American labor per unit of output has increased by a factor of 4.5 since 1970; in the United Kingdom the factor is 12.8. The influx of younger workers also helps stabilize the American tax base. Legal immigrants collectively generate half a trillion dollars in income and pay taxes in proportion to it. Yet they will not draw upon the biggest line item in the U.S. federal budget — Social Security — unless they become citizens. Even then they will pay into the system for an average of 41 years, considering that the average Mexican immigrant is only 21 years old (according to the University of California) when he or she arrives. By comparison, the average legal immigrant — Mexican and otherwise — is 37 years old. Even illegal immigrants are a considerable net gain to the system, despite the deleterious effects regarding crime and social-services costs. The impact on labor costs is similar to that of legal immigrants, but there is more. While the Mexican educational system obviously cannot compare to the American system, most Mexican immigrants do have at least some schooling. Educating a generation of workers is among the more expensive tasks in which a government can engage. Mexican immigrants have been at least partially pre-educated — a cost borne by the Mexican government — and yet the United States is the economy that reaps the benefits in terms of their labor output. Taken together, all of these demographic and geographic factors give the United States not only the healthiest and most sustainable labor market in the developed world but also the ability to attract and assimilate even more workers. [/QUOTE]
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