This economy reminds me of the 70's... (unemployed, illegal, attorney)

[burdell]

Originally Posted by trzlucky

montanamom - Unemployment in 1975 went over 9%. It's under 5% now. The manufacturing age in the U.S. is over. The sooner that Americans realize that our economy is now services/techology based, and adjust for it, the better off the country will be.

I'm not so sure accepting this is a wise idea. One of the major reasons we were able to prevail in WWII was our ability to quickly shift our manufacturing plants to production of the tools of war, what do we do if we're ever faced with similar circumstances, ask China to start building weapons for us?

[TonyT]

Spiro Agnew was charged with tax evasion and money laundering. He pleaded "no contest" to the charges. He was found guilty of improperly filing an income tax return, fined $10,000 and given 3 years probation. He never went to prison.

[Tricky D]

What I vaguely remember from the 70's economy in Holland was that we had car-free highways on Sundays.
We should have that more often.

[trzlucky]

catrinac - At least we aren't waiting for hours in line to buy gas like people had to during parts of the 70's. Maybe if the price of gas goes up a little more, the government will stop screwing around and really promote energy alternatives.

I agree that the LIFESTYLE of the 70's may have been preferable, but that is a matter of choice by Americans to live away from their families at a different pace of life, not because of a failing economy. Quality of life (access to necessities and availability of wants) far exceeds that of the 70's.

[ViewFromThePeak]

Originally Posted by burdell

I'm not so sure accepting this is a wise idea. One of the major reasons we were able to prevail in WWII was our ability to quickly shift our manufacturing plants to production of the tools of war, what do we do if we're ever faced with similar circumstances, ask China to start building weapons for us?

The complacency that we can exist without manufacturing is outstanding.

Non-exportable services is not an industry suitable to trade.

But, borrowing to consume "shifted the paradigm" for a few years. How quickly people latched onto the idea that it was a sustainable growth dynamic. The current housing depression should be an eye opener to these dreamers.

[trzlucky]

burdell - that is an interesting point. Even in a technological/services based economy there will always be some manufacturing. There are laws in place (that need to be strengthened by Congress) to keep manufacturing of defense materials produced here in the states. Keeping the ability to ramp up military production will always be necessary, but keeping the prodution of textiles, cellphone components, etc in the US would just hold the economy back in the long run.

[ViewFromThePeak]

Originally Posted by trzlucky

burdell - that is an interesting point. Even in a technological/services based economy there will always be some manufacturing. There are laws in place (that need to be strengthened by Congress) to keep manufacturing of defense materials produced here in the states. Keeping the ability to ramp up military production will always be necessary, but keeping the prodution of textiles, cellphone components, etc in the US would just hold the economy back in the long run.

China is preparing to de-couple by losing the dollar peg and selling their goods domestically to Chinese with a 35% savings rate and increased purchasing power to a stronger currency that's able to cannibalize off our existing oil imports, and few look ready to pick up the slack. Where will you get your tennis shoes?

[burdell]

Originally Posted by trzlucky

burdell - that is an interesting point. Even in a technological/services based economy there will always be some manufacturing. There are laws in place (that need to be strengthened by Congress) to keep manufacturing of defense materials produced here in the states. Keeping the ability to ramp up military production will always be necessary, but keeping the prodution of textiles, cellphone components, etc in the US would just hold the economy back in the long run.

In the WWII scenario we had things like Ford Motors making B-24 bombers and a GM plant making Grumman torpedo bombers. I would think some capability must be kept here as a cell-phone plant could be quickly switched to guidance systems, textiles to weaving buller resistant Kevlar cloth, etc.

While attempting to keep everything here would hold back the economy, accepting the oiffshoring of everything will make us dependent on other nations in the same way we are with oil, not a good thing IMO.

[trzlucky]

That'll be a new market for US goods and services and maybe it will slow down our thrist for consumption. With the housing issues, that is going to be necessary anyways.

The housing depression was caused by too low of interest rates that allowed people who weren't ready to buy homes, buy homes. It also allowed too many scammers to set up ridiculous loans that again, allowed people to buy homes that should not have been buying homes. It had little, if anything, to do with outsourcing of jobs.

[trzlucky]

burdell - I completely agree that we can't allow everything to be offshored, but I think the markets will prevent that from happening. Like View said, if China decouples from the dollar, their products are going to be more expensive. That will keep more manufacturers from going to China. There needs to be some regulation, but we definitely do not need to artificially create manufacturing jobs like Hillary and Obama are proposing.