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I would agree in more typical recessions. But the Pandemic is very unique and a recession no one could have predicted.
A real Black Swan event.
Having enough savings to survive the Pandemic and support yourself, family and business is easy for the rich. But the poor and broad middle class, along with many smaller businesses of all sorts everywhere will not be able to.
This is where central gov't comes in. New moneys have been and will still be needed and created moving forward into the future. Possibly a year or so until the Pandemic winds down enough so that we can resume most activities and business.
Pandemic has to be one of the best reasons for new central moneys to support individuals, businesses and the related necessary healthcare.
Stalled wage growth...low interest rates....super massive house prices....division between the poor and the wealthy with no middle class....spend spend spend is how so many people live. So many people living beyond their means. Debt debt debt.
I don’t have the solution as this is why I had asked the question. I am not trying to be nasty but if the entire thing burned to the ground....wouldn’t it start over again like it did in the 30s.....
You are never going to make any progress thinking about these topics if you keep making things up as you go.
1. Real wages had grown nicely for years setting an all time high in late 2019 and believe it or not since then real wages through Nov. 2020 were up another 3.2% over the previous 12 mos. So real wages are at their all time high right now. Further, the average workweek increased in hours as well yielding a 4.7% increase in weekly earnings. I know that does not help those who are out of work but it's great for those who are working.
2. Low interest rates are good not bad IMO.
3. There is a very large and thriving middle class in The US. The middle class is a little smaller than it was decades ago BUT half of the decrease moved into the upper classes and the other half the lower classes. A little over 50% of adult Americans are in the middle class.
4. Many people spend beyond their means, many others do not.
5. Median household debt is ~$16,000 less now than 2010.....low interest rates have a lot to do with that.
You are never going to make any progress thinking about these topics if you keep making things up as you go.
1. Real wages had grown nicely for years setting an all time high in late 2019 and believe it or not since then real wages through Nov. 2020 were up another 3.2% over the previous 12 mos. So real wages are at their all time high right now. Further, the average workweek increased in hours as well yielding a 4.7% increase in weekly earnings. I know that does not help those who are out of work but it's great for those who are working.
2. Low interest rates are good not bad IMO.
3. There is a very large and thriving middle class in The US. The middle class is a little smaller than it was decades ago BUT half of the decrease moved into the upper classes and the other half the lower classes. A little over 50% of adult Americans are in the middle class.
4. Many people spend beyond their means, many others do not.
5. Median household debt is ~$16,000 less now than 2010.....low interest rates have a lot to do with that.
There is just no way you are gonna convince me that housing prices and wages or household incomes are rising proportionately. Same with car prices. The wages are stalled for so many people. All of this money that is being pumped I as well as the super low interest rates doesn’t help long term.
Only the bit about the smart ones. I would say rich enough to weather the Pandemic and/or lucky.
For instance moving forward, anyone going into the restaurant business has a new worry and future planning possibility.
Anyone opening a new restaurant should know that the odds of success are stacked against them from the start. They will be out of business within 3 to 6 months, even during the best of times.
However, wouldn’t allowing the entire world and economy to crash (from the Covid)be the right thing to do from correcting society? Sending out the stimulus check, is that not just prolonging the inevitable?
Allowing the entire world to crash is going to cause a lot of civil unrest. If it gets bad enough it will become almost like a war crime where hostages are held in a battle between the haves about who will feed the have-nots!
Allowing the entire world to crash is going to cause a lot of civil unrest. If it gets bad enough it will become almost like a war crime where hostages are held in a battle between the haves about who will feed the have-nots!
The crashing of the global economy is utterly unavoidable. The bigger this bubble becomes, the more damage it will do when it finally bursts- and all bubbles must burst, that is a law as fundamental as gravity and thermodynamics. So it's best that the collapse come sooner rather than later. There will be immense suffering and agony regardless of what happens, but the longer an unsustainable thing is made to grow and persist, more dire the long-term consequences will be- all these delaying tactics by the governments and central banks (cheered on by the foolish masses, of course) are merely creating stored energy for the unavoidable collapse.
The crashing of the global economy is utterly unavoidable. The bigger this bubble becomes, the more damage it will do when it finally bursts- and all bubbles must burst, that is a law as fundamental as gravity and thermodynamics. So it's best that the collapse come sooner rather than later. There will be immense suffering and agony regardless of what happens, but the longer an unsustainable thing is made to grow and persist, more dire the long-term consequences will be- all these delaying tactics by the governments and central banks (cheered on by the foolish masses, of course) are merely creating stored energy for the unavoidable collapse.
False dilemma. Let the bubble deflate slowly in a controlled way, it is not a choice between total collapse vs. continued destabilization. The only problem is political will.
False dilemma. Let the bubble deflate slowly in a controlled way, it is not a choice between total collapse vs. continued destabilization. The only problem is political will.
Never let facts get in the way of taggerungs story lines
There is just no way you are gonna convince me that housing prices and wages or household incomes are rising proportionately. Same with car prices. The wages are stalled for so many people. All of this money that is being pumped I as well as the super low interest rates doesn’t help long term.
Housing prices are determined by local conditions...not by what you see or think ...the second home we sold in 2012 in pa. Just reached the same price it was when we bought in 2007 .
Many areas with millions of people are seeing prices come down like in parts of nyc
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