Why the financial market is a major location advantage for the USA - insights from a financial expert

Why the financial market is a major location advantage for the USA - insights from a financial expert

According to a report by www.capital.de,

The financial market and stock exchanges are in a difficult situation in this country. The situation is completely different in the USA: Americans' affinity for the capital market has given them a decisive locational advantage. If you want to understand why the wealth gap between the USA and Europe is constantly increasing, you definitely have to look at the financial markets. It's not just about the sheer size, breadth and depth of the American financial markets. The entire ecosystem consisting of universities, consulting companies, software developers and service providers is incomparably dense and leading.

This development did not occur by chance. It is not surprising that there is hardly anyone among American politicians who is not privately involved in the stock market, if only through retirement provision via pension funds. The same applies to the representatives and management staff of American institutions, such as the Federal Reserve, the Securities and Exchange Commission (SEC), the Environmental Protection Agency or the FDA. In this respect, American elites are very closely linked to the prosperity of the economy. They sense the state of the American economy based on their own financial situation and have a strong interest in the well-being of the economy.

One has to state with resigned composure that the financial center of Frankfurt barely makes it into the top 20 most competitive financial metropolises, while no fewer than five major US cities, New York, San Francisco, Los Angeles, Chicago and Boston, are in this illustrious circle. In comparison, only one European financial center is ranked among the top 10.

Basically, we Germans have never really understood the topic of financial markets and stock exchanges. A combination of obsession with interest rates, hostility to stocks, a fully comprehensive mentality, anti-Americanism and faith in the state has prevented a strong financial market from emerging in Germany. Unlike in the USA, the topic does not play an important role in schools and universities. The majority of teachers and professors do not own any shares and are civil servants. This factor can lead to Germany falling behind in international comparison when it comes to the issue of prosperity development.