Jack Albrecht
Jan 30, 2023

If you look at GDP, a huge portion of the calculation in the US is based on non-production income. Health insurance and finance being two huge portions of this.

The health (i.e. "real GDP") of an economy is based in large part on its ability to produce goods and industrial services. The US makes a LOT of money, but A) most of it goes into very few hands, and B) a huge percentage is for things that don't produce tangible goods or services.

IMO that is why Russia survived the new massive western sanctions of 2022 so well. Russia's GDP is on paper much smaller than the US, but it is mostly made up of industrial production that customers want. Which is why most everyone sanctioning Russia still ended up buying from Russia, just through a 3rd party.

Jack Albrecht
Jack Albrecht

Written by Jack Albrecht

US expatriate living in the EU; seeing the world from both sides of the Atlantic.

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