a. The current world Gross Domestic Product (GDP—the total value of goods and services provided by a county in a year) is approximately $60 trillion. The U.S. runs about $15 trillion and China’s GDP is nearly $6 trillion. However, U.S. GDP growth is about 2% whereas China’s is 10%. At that rate of compounding, in 30 years the U.S. will be eating China’s dust—and that means a lot more cities looking like Detroit than boomtowns. When you’re the economic leader of the world, you have greater say in just about everything from domestic to foreign policy. When you’re in second place, the whole game changes.
b. And at the heart of GDP is job growth—the greater the job growth, the greater the GDP. Small to medium-sized companies, not big companies, grow 99% of the jobs. You need big companies for lots of reasons, but the real job growth comes from companies of less than 500 and even more so from companies of less than 100.