This is beyond fascinating (and depressing!): the best set of charts you'll ever see on the extent to which US capital now dominates the planet.
I extracted them from this ⬇️ talk by Sean Kenji Starrs, a scholar at King's College London
A small 🧵
youtu.be
I extracted them from this ⬇️ talk by Sean Kenji Starrs, a scholar at King's College London
A small 🧵
youtu.be
To start with, these numbers are mind-blowing. It shows what % of the global profits of select industries end up in American pockets:
- Aerospace and defense: 92%
- Media: 81%
- Pharmaceuticals: 50%
- Hardware and software: 77%
- Electronics: 46%
- Financial services: 67%
- Aerospace and defense: 92%
- Media: 81%
- Pharmaceuticals: 50%
- Hardware and software: 77%
- Electronics: 46%
- Financial services: 67%
In fact the only industry where the US doesn't extract the most profits is banking (they're 2nd to China).
As a reminder, America is only 4% of the world's population so, quite logically, in an ideally fair world, they should get about 4% of the world's profits...
As a reminder, America is only 4% of the world's population so, quite logically, in an ideally fair world, they should get about 4% of the world's profits...
What's even more troubling is that in most industries, the share of profits going to Americans has been growing over time, not shrinking...
This is also quite stunning. About 35% of the world's 500 top companies are American but Americans own about 46% of the shares of these 500 top firms.
By contrast, 15% of the world's top firms are Chinese but the Chinese own only about 6% of the top 500 firms.
By contrast, 15% of the world's top firms are Chinese but the Chinese own only about 6% of the top 500 firms.
In fact, and this is very counterintuitive, top Chinese companies, even majority state-owned companies, have on average a larger foreign ownership than top US firms.
Americans own 82% of their top 50 firms while the Chinese only own 64% of their top 50.
Americans own 82% of their top 50 firms while the Chinese only own 64% of their top 50.
Staying on the topic of China we often assume that because China is by far the world's biggest exporter, it must generate (and keep) a huge amount of profits from this.
But the stunning fact is that much of the profits from Chinese exports go to... Americans!
But the stunning fact is that much of the profits from Chinese exports go to... Americans!
Look at this: China exports 32% of the world's office and telecom equipment but keeps only 1.6% of the profit, 60% goes to Americans!
Same thing with clothing: 37% of world's exports come from China but they get only 4.7% of the profits, 50% goes to Americans!
Same thing with clothing: 37% of world's exports come from China but they get only 4.7% of the profits, 50% goes to Americans!
This ⬇️ is part of the reason. That's the evolution of the ownership of firms in China exporting "process with imported materials" stuff, basically all the high tech stuff (phones, cars, etc.).
In 1995, 40% of these firms were state-owned enterprises (SOEs) but today the immense majority are either pure foreign-owned enterprises (FOE) or foreign-invested enterprises (FIE) in general.
So actually there is a very good case to be made that the rise of China has made America or at least the American capital class, immensely richer and more powerful since they're the ones who get to keep an immense share of the profits from it...
It's all quite depressing, frankly.
We always speak about inequality between rich and poor but rarely about this: how can a country with just 4% of the world's population get to extract such a disproportionate share of the planet's profits?
Do we all work for Americans? 🤔
We always speak about inequality between rich and poor but rarely about this: how can a country with just 4% of the world's population get to extract such a disproportionate share of the planet's profits?
Do we all work for Americans? 🤔
Oops, you're right, I did link the wrong video! Right one here ⬇️
And thanks for an excellent talk @SageforAge, I've been watching several of your videos, that's why I mistakenly selected the wrong one in my watch history!
And thanks for an excellent talk @SageforAge, I've been watching several of your videos, that's why I mistakenly selected the wrong one in my watch history!
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