Posted on 08/25/2010 11:33:30 AM PDT by bronkburnett
The decrease of the percentage of people between the ages of 40 and 55 caused a decrease in demand for real products like houses, furniture, cars, boats, etc.
...extensive immigration causes more problems than it solves, especially if the immigrants have no jobs, no families, don't assimilate and aren't between 40 and 55.
The federal government ...invested in the auto industry, gave money to home lenders, gave bailout money to teachers, etc. And none of it worked because none of it solves the problem of decreased demand for products.
Since the number of people between 40 and 55 does not increase again until 2022, we have a huge problem that cannot be solved by financial bailouts.
Using taxpayer money for such bailouts is a loser...
...increasing exports requires that the U.S. become more competitive at manufacturing products. And as long as unions will not help decrease manufacturing costs, educators do not produce enough engineers and the government does not reduce the high taxes on manufacturing firms, most companies will continue to outsource manufacturing and the U.S. will not be competitive at exporting products.
...This is a short-term fix that will help for a while as the U.S. tackles those problems that are chasing manufacturing out of the country:
Our federal government should buy $100 billion of finished goods that are made in the United States by U.S. corporations with American-made components … and throw them away.
....Is this administration listening? Probably not. While this idea actually attacks the problem of decreased demand for goods, this administration is only interested in spending money to help its political base of teachers, unions, insurance companies, Freddie Mac, Fannie Mae, etc. And there is no amount of spending on services that will increase jobs; only increased consumption of goods will save the economy.
(Excerpt) Read more at wnd.com ...
Isn’t the point of this article that the Federal government needs to buy U.S. manufactured products, thus raising consumption.It then must destroy what it has purchased in order to increase actual demand without just replacing existing demand?
“how is this government going to replace that missing consumption?”
For the life of me I can’t understand why we’d need to bother. If there’s less consumption, hey, why not produce less? Or send it overseas. Whatever. All I know is the idea that there is less demand than necessary is insane and nonsensical.
let me take a stab at this. add up everything that is sold and that is the GDP. So if less is sold, then the GDP is less. and that drives employment down. even though there are more people in the USA, those who are the group who consume the most are fewer in number, so GPD is less and so is employment.
Hate to break it to you, but GDP and economic health are not the same thing.
People were borrowing against the increased value of their homes and spent to keep up with the Jones. The increase of the house values were due to the artificial inflation of values by loans to people who did not deserve to actually get a loan under the guise of racial equality.
These 2nd mortgages came to a screeching halt and so did the spending of the middle class. It was a totally artificial buildup all the way through. Well Christmas is over and Santa is dead.
“Why doesn’t anyone understand the scenerio of what happened?”
My guess is no one ever made them read Mises, Hayek, or Rothbard.
So on a national level, house sales are down because demand is down. And demand is down because there are fewer of those people who are between 40 and 55 who are the most affluent home buyers.
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