New Economic Update (collection, credit, mortgages, interest)

[Brave Stranger]

What......we can't keep selling houses to each other forever and moving paper around ?

[montanamom]

There will be no real recovery without people having gainful employment. There is no more "bubble" to falsely carry our economy anymore.

[Stac2007]

Originally Posted by user_id

Huh? I stated "The goal is not really to create jobs". Fiscal policy is not really about creating jobs (in the usual sense), nobody is pretending that it does. Of course, the government talks about "creating jobs", but what else are they doing to say? The masses don't understand economics, so they speak simply. Also, your claim about the 1930's is not accurate. Fiscal policy pulled the economy out of the depression. In fact the government decide to change gears in 1936 and guess what the result was? Another depression! Contrary to popular brief the depression was a double dip. The first dip around 1932 and the next in 1937. Between these periods GDP and employment improved.

High unemployment is a rather unnatural state for an economy to be in, its only temporary. How can you have prolonged joblessness? You can't, the worst case is that all the land owners and rent-seekers get broken and people start providing for themselves. But that will quickly result in trade and specialization.

How is this thing temporary? Do you really believe what you say? We outsourced most of our industries. How can unemployment possibly get better? I can see why we are usually at odds. I get the inpression you care very little for the lives of the average citizen and more about making money. You have not said how we are going to create jobs. Well I am waiting! You really have no answers.

[Stac2007]

Originally Posted by montanamom

There will be no real recovery without people having gainful employment. There is no more "bubble" to falsely carry our economy anymore.

Tell that to user_Id. He thinks our economy will be saved when the federal government finds the city of El Dorado.

[user_id]

Originally Posted by Stac2007

How is this thing temporary? Do you really believe what you say? We outsourced most of our industries. How can unemployment possibly get better?

We have not outsourced most of our industries, rather primarily lower skill industry. And yes, its only temporary, how would under-employment be permanent? Once the establishment (i.e., land owners and the like) have been broke people would start working again, if at the very least to provide for themselves. Fiscal policy is a way of avoiding a collapse of the establishment while getting back to full-employment.

Originally Posted by Stac2007

I get the inpression you care very little for the lives of the average citizen and more about making money.

You're right I care about making money, or rather creating goods I can trade. But what I'm talking about is just economics. This country (and the western world in general) has been through much worse events than the current one, your ancestors would be giggling at you if they could hear you now.

Originally Posted by Stac2007

You have not said how we are going to create jobs. Well I am waiting! You really have no answers.

Who is this "we"? From what I gather, you are not going to create a single job. How am I personally going to create jobs? By creating projects that I can trade.

People (not the government) will create jobs because they want to provide for themselves. There are many opportunities for new industry, do you believe that some how we have invented all that can be invented?

You are seeing high unemployment right now because the economy has misallocated valuable resources (namely labor). Far too many people went into real estate related industries, business, finance, etc. It will take awhile for the economy to realign and reallocate these resources, in the mean time you'll see an elevated unemployment rate.

[montanamom]

And why was so much of our economy for so long tied to real estate (houses primarily)? Because it was the biggest commodity we still made and manufactured here in this country.

We need industries. We have to get back to making and manufacturing products in this country again, it's just that simple.

[MotleyCrew]

I think the age of good wages is behind us now. We are destined to all make $7 an hour now. Obama stood and spoke and told us we all should learn to live within our means and perhaps he has a point there. Just wish he would stop flying his wife all over for a date and eating Kobi beef in front of us.

[RedNC]

Originally Posted by user_id

You are seeing high unemployment right now because the economy has misallocated valuable resources (namely labor). Far too many people went into real estate related industries, business, finance, etc. It will take awhile for the economy to realign and reallocate these resources, in the mean time you'll see an elevated unemployment rate.

As usual you are all over the place. It's like sitting next to a drunk in a bar. He just keeps talking and making no sense.

Misallocated? Is that your way of saying they sent the jobs overseas?

"Far too many people went into real estate related industries, business, finance, etc."
They did that because that was the only thing they could do after their job was "outsourced". They resulted in the last two "bubble economies". The first was the dotcom bubble. After that the real estate bubble.

Realign to what?

[mpyne]

Originally Posted by user_id

Why should the government get in the way of what businesses want to do? People wanted imported products because they are generally cheaper, businesses were only doing what the consumers wanted.

What they are doing now is a Keynesian sort of stimulus. The goal really is not to "create jobs", its to keep the economy going while it realigns. If the economy does not fix its issues there is little the government can do about it.

This bolded is a fallacy and is used to brain wash you into thinking outsourcing is good for us.

You had this discussion in another thread about how the price of levi's has gone up since they were offshored.

Do you really think corporations offshore things because they care about us and want to keep prices low???

Can you give some examples of prices going down when manufacturers offshore their operations? Nike? Abercrombie & Fitch? Mattel?

[Stac2007]

Originally Posted by RedNC

As usual you are all over the place. It's like sitting next to a drunk in a bar. He just keeps talking and making no sense.

Misallocated? Is that your way of saying they sent the jobs overseas?

"Far too many people went into real estate related industries, business, finance, etc."
They did that because that was the only thing they could do after their job was "outsourced". They resulted in the last two "bubble economies". The first was the dotcom bubble. After that the real estate bubble.

Realign to what?

I agree with you RedNC. This guy really is brain washed. He says we only lost unskilled labor. What about the white collar jobs which kept the plants running? Managers, IT people, accountants, secretaries all lost their jobs. They disappeared when the plants closed also. So to spew that same nonsense they gave us over 20 years ago really does not make sense. We are not experiencing some thing temporary, it is long term. By saying you are making money off of job outsourcing this means you don’t really care about people. It’s all about your self.