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Old 10-29-2008, 07:41 PM
 
Location: Atlanta
2,851 posts, read 5,594,477 times
Reputation: 1723

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Here's my take on the national economic situation in a nutshell.

1. For the past 20 - 30 years America has pretty much been surrendering it's manufacturing base to foreign competitors. This has resulting in a huge number of high paying factory jobs being converted to lower paying service jobs and has left us with a 800 billion dollar trade deficit.

2. America offset this downturn by huge military spending in the 80's (cold war, remember?) which led at first to a hot economy where money trickled down from contractors like General Dynamics, Lockheed, etc. etc. Then, eventually came a huge government deficit and a busted stock market at the end of the 80's early 90's.

3. America rebounded from this with a red hot technology sector spurred on by out of control speculative investing. This stimulated the economy until people realized most of these tech companies were bogus then came another stock market crash and recession.

4. The government pulled us out of this by lowering interest rates to spur people to buy homes and other loan purchases. This kept us chugging along off a hot real estate and construction sector until as you all know it became obvious people had borrowed more than they could repay. Banks go bust! Stock market goes poop!


The one constant through all of this remains the same. With the exception maybe of processed food and Hollywood movies our country no longer ships out any finished goods more than we ship in. Our auto industry has bowed down and been knocked out by Japan and Germany. We no longer make steel for ourselves or anyone else (Japan, China). Our shipbuilding industry is as extinct as T-Rex ( Japan then Korea took that from us). We no longer make the clothes we wear, the electronics we use, the everyday products and appliances that make life what it is.

Some of this is due to lower wages overseas, some to inferior quality of our products but way too much is due to unfair trade practices.

Until this core problem is adressed we will keep seeing one band aide and aspirin solution after another fail.

Just one mans opinion since about 1987. What do you think?
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Old 10-31-2008, 05:49 PM
 
Location: Greater PDX
1,018 posts, read 3,729,292 times
Reputation: 941
#4 is right on the money and about 90% of our current problems - when you add in all the bad credit from liar loans. Wages have been flat since 2001, and housing prices have skyrocketed. That discrepancy cannot be maintained. People kept taking equity out of their houses so they could keep spending 104% of what they make. Gas hit $4 a gallon, and then, wham...serious problems.
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Old 10-31-2008, 05:51 PM
 
Location: southern california
55,697 posts, read 74,690,590 times
Reputation: 48231
unfair trading
labor busting.
unrealistic job expectations of our youth.
too much debt
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