2021 Letter
Key points:<p>&quot;Thus Beijing prefers that the best talent in the country work in manufacturing sectors rather than consumer internet and finance. Personally, I think it has been a tragedy for the US that so many physics PhDs have gone to work in hedge funds and Silicon Valley.&quot;<p>&quot;The US focus on efficiency has revealed the brittleness of its economy, which has neither the manufacturing capability to scale up domestic production of goods nor the logistics capacity to handle greater imports. Decades of American deindustrialization as well as an aversion against idle capacity has eroded domestic manufacturing.&quot;<p>&quot;In the face of this challenge against a new peer competitor, the US has demonstrated a superb capacity for self-harm.&quot;<p>&quot;For someone in the middle class, there has never been a better year to live in China. That comes down to the entrepreneurs, who are creating businesses to please people.&quot;<p>All, absolutely true as I&#x27;ve commented previously in other posts. The decline of America is primarily a story about misallocation of talent and the demise of the American middle class as a result.