The Saudis never saw this coming: how the Yanks are able to produce oil at such incredibly low cost and they could even go lower. It is impossible to beat the Americans in a price war.
The economic lesson is that no country can have a bamboo diet like pandas. Only diversified economies are resilient and few economies are diversified. Just look at the Aussies who got rich recently exporting resources to China. When the Chinese stopped buying they suffer violent economic convulsions.
Most people and their leaders are lazy. Typically they do not bother to work hard toward a diversified economy.
Anytime there are bound to be winning and losing sectors in an economy and some sectors are persistently relative losers. Such sectors have a hard time attracting their share of talent. In our case it is the difficulties of attracting more people to do engineering.
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