Alright then oh learned oracle of economics please explain just how are the great unwashed supposed to interpret the following statement from you in post # 662?:
If we exported much more the inflation rate would soon bring us back to the stagflation of the 70s.Oh and did you miss my question in post #647 to whit:
How may companies do you know of which have remained in business by NOT making any profits?
Given the Low unemployment rate and given high capacity utilization rates in industry any increase in production encounters the Law of Diminishing Returns and will cause higher costs and higher prices. This is true for domestic production OR production for export.
IF our U.r. was 10% then ramping up production for more export would NOT cause prices to rise since there is excess labor available and, under certain conditions, may even cause prices to fall. However, I was speaking of conditions NOW.
Yes I did miss that question but it is a lame one having nothing to do with anything I have said. Companies can remain in business without profits for as long as they have assets to convert to cover the difference between revenues and costs. Short run unprofitability is not uncommon.