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Okay, all joking aside. I don't think there is going to be an economic collapse, but I do think there will be a major economic contraction. I think it will be world-wide, but I think it will "appear" worse to people living in America, because a significant percentage of the population will see a dramatic reduction in their standard of living. They may still be living better than most of the world, but by the expectations of our standards, its going to feel like the end of the world.
Our economy has experienced exceptional growth since WWII, but nothing can grow forever. Look at any company traded on the stock market, their value is derived almost solely on their quarterly growth, either in actual sales, market share, revenue, or simply expectations. And every company, no matter how successful, eventually stops growing. Then they either engage in massive downsizing, or spin-off subsidiaries, or simply get gobbled up by another company. We tend to call these corrections, but they are always traumatizing events for the people involved.
The big problem is that this is inevitable, and good managers can help guide organizations through the process and reduce the trauma by correctly managing expectations and making sound decisions. Unfortunately, we don't have good managers. I don't care if you are left or right, Republican or Democrat, hate Obama or love him, our government does not seem know how to govern, and it often seems like they are not interested in even trying. So many of us become blind-faith slaves to ideology, and engage in such extreme partisan demonizing of others who hold (Heaven Forbid) different ideas than our own that in some ways, we got the government we deserve.
Okay, all joking aside. I don't think there is going to be an economic collapse, but I do think there will be a major economic contraction. I think it will be world-wide, but I think it will "appear" worse to people living in America, because a significant percentage of the population will see a dramatic reduction in their standard of living. They may still be living better than most of the world, but by the expectations of our standards, its going to feel like the end of the world.
Our economy has experienced exceptional growth since WWII, but nothing can grow forever. Look at any company traded on the stock market, their value is derived almost solely on their quarterly growth, either in actual sales, market share, revenue, or simply expectations. And every company, no matter how successful, eventually stops growing. Then they either engage in massive downsizing, or spin-off subsidiaries, or simply get gobbled up by another company. We tend to call these corrections, but they are always traumatizing events for the people involved.
The big problem is that this is inevitable, and good managers can help guide organizations through the process and reduce the trauma by correctly managing expectations and making sound decisions. Unfortunately, we don't have good managers. I don't care if you are left or right, Republican or Democrat, hate Obama or love him, our government does not seem know how to govern, and it often seems like they are not interested in even trying. So many of us become blind-faith slaves to ideology, and engage in such extreme partisan demonizing of others who hold (Heaven Forbid) different ideas than our own that in some ways, we got the government we deserve.
Politicians either Democrats or Republicans are just using funds to buy votes at the people expenses by introducing popular policies especially with Wag the Dog theme via war campaigns. If they really care about prudence, they should think before they spend. Worse, they are borrowing more to spend it!
We've been using debt for decades so as not to go into a recession/depression. All of that would have been considered an economy in decline.
True. The Bush cuts were to get spending up and lowered rates let people access more debt. The jobless recovery was nothing more than easy access to debt to give the illusion of wealth.
From a Nobel Prize winner to prevent the collapse - Joseph Stiglitz
Surely you jest.
If this recession proves anything it is that Socialism and Keynesian economics are unsustainable not only for the USA but for Europe as well.
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Surely you jest.
