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ECONOMIES OF SCALE (SIZE MATTERS)

Posted on March 15, 2017
| 0

By Mike Doyle, CCIM

I recently attended an event where one of the speakers, a member of the capital markets division for a well-known financial institution, did a presentation on economic growth, global trade and regulation. He reminded everyone that the United States is blessed with incredible comparative advantages that have helped make our economy one of the most stable, durable and flexible in the world. Key components of this advantage include:

  • The vast amount of usable land available for production
  • The incredible natural maritime transportation system that facilitates the shipment of goods to and from the US, including the Mississippi river and large natural harbors such as, San Francisco Bay, Chesapeake Bay and Long Island Sound/New York bay,
  • The ability for trade and resources to move freely
  • The large quantities natural resources such as iron ore, coal and timber are found within in our borders
  • Our technological and economic innovations lead the world and are easily adopted here at home

Of course, things are far from perfect, but it was good to be reminded that we are blessed with incredible advantages and a national work ethic that is second to none.

 

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