What he is saying is different, however. The situation is much worse than the actual numbers plus the outlook for growth is pessimistic. He bases this upon puny economic growth, inadequate state tax revenue driving higher taxes/reduced spending and evaporation/disappearance of job creating businesses.
Consumers have traditionally led recoveries. With limited available sources of funds (home equity, credit cards and reduced payrolls) it is hard to see this recovery-by-consumer happening.
We need to start making stuff again.
schu
I quite agree with you that we got to start making stuff but that is unlikely to happen in an economy with rising taxes, rising energy costs, rising inflation, shrinking demand, rising regulation and a well grounded fear that America has abandoned the rule of law and the free-market model for a socialist/cronyism model represented by Goldman Sachs and General Electric.
“We need to start making stuff again.”
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We will very soon! We will start making two wheel carts out of our cars but unlike my grandparents generation we won’t have any horses or mules to pull them so we will have to pull them ourselves. We will also start making fires outside to cook on when the electricity and gas are shut off. Fortunately I have plenty of hardwood here where I live and I have squirrels in the trees and a .22 rifle and 2 or 3 thousand long rifle rounds. I also have a shotgun and ammo and a .270 rifle and some ammo and there are deer around here and there are catfish in the creek behind the house. Yep, I should be in real good shape. Now how was it that guy told me to cook Raccoon? Oh, that’s another thing we will start making again, Coonskin caps!