I guess I still don't understand though. Is the claim that tech innovation in the rest of the world is being turned into money in the US only? If so, why is that happening?
The claim here is that the tech innovation is occurring in the US. It adds value globally, but most of the profits from that value are being realized in the US b/c the innovation is by US companies.
There’s no natural law that says technical innovation must occur in NA, but due to contingent historical conditions, it is occurring here. Thus, the gains are being realized in the US stock market b/c it’s the one capitalizing the winners.
>It adds value globally, but most of the profits from that value are being realized in the US
this is contradictory. profits are added value. if value is added globally, there are extra profits (likely as cost savings by other industries adopting tech)
US cultural dominance for one thing, then success begets success - lots of VC money in the US because the US is rich which gets invested which returns even more and makes it richer.
US businesses more likely to work with US suppliers, US customers more likely to buy from US businesses, then those dominant domestic positions can be used to expand globally far easier than say a Spanish firm can expand into the US.
They’re generalising to say the world uses Apple, Google, Microsoft, Zoom, Cisco, Tesla, and so on… US tech stocks. We use them and they gain revenue and profit.
Of course there are many successful tech co’s outside the US but (and I haven’t looked) I imagine the US tech stocks must overshadow every other countries tech sector.
