“At least once a week, you hear some Wall Streeter exulting that manufacturing is showing signs of recovery. What he doesn’t tell you is that manufacturing is less than 10 percent of the economy. He won’t mention that sickly consumer-related activity is 75 percent.”
Does anyone think the standard of living that Western societies have been living in the past 50-60 years will continue? The standard middle-class benchmark of living has been one or two cars, a house, a nuclear family, and vacations, all generated by income from earned money from typical middle class occupations. The middle class, as specified by wikipedia, includes anywhere from 25% to 66% of households.
“Everyone wants to believe they are middle class…But this eagerness…has led the definition to be stretched like a bungee cord — used to defend/attack/describe everything…The Drum Major Institute…places the range for middle class at individuals making between $25,000 and $100,000 a year. Ah yes, there’s a group of people bound to run into each other while house-hunting.” —Dante Chinni.
America has become more a debt ‘junkie’ than ever with a total debt of $ 57 trillion – – and the highest debt ratio in history. A large portion of total debt was created since 1990, a period primarily driven by debt rather than productive activity.
The US of A has become the opium addicts the Chines once were with cheap imports from China where the West’s manufacturing base has largely been relocated; indeed, the livelihood of the North American economy. Now, the US is suffering its second Greatest Depression that will make the first one look like a cakewalk with all the credit cards and debt instruments that didn’t exist back then.
In the 1700s, Congress was advised by President Washington that it was necessary to impose tariffs to protect industries of their colonies. This was the firsts trade barrier. Let us dispose once for all with words such as “isolationist” and “being against global trade.” The US did not grow great on these things. It grew great on the hard labor of the people who lived in those days and the wise protection barriers imposed by George Washington erected to protect the US from the Britishs’ damned so called free trade.
It allows other countries like China to dump their products on the US market to the detriment of thee US. chinese opium smoker
It is strictly a one-way street as evidenced by the rules, barriers, and mercantilist policies enacted by the Chinese to protect their own industries from “harmful” US imports. Indeed, our old presidents saw value of trade barriers and realized that if the US were to progress, it would not be a dumping ground for the world.
Too Much Debt, Too Few Jobs
By Don Bauder | Published Wednesday, Feb. 24, 2010
If a railbird tout gives you a tip on a horse, and you learn that three of the nag’s legs are so fragile they will likely break during the race, you will keep your money in your wallet. Similarly, if you’re told that some relay team is a sure thing, but you find out that three of the four runners weigh 375 pounds each, you won’t count on those tracksters to win a gold medal.
It’s the same way with the American economy. At least once a week, you hear some Wall Streeter exulting that manufacturing is showing signs of recovery. What he doesn’t tell you is that manufacturing is less than 10 percent of the economy. He won’t mention that sickly consumer-related activity is 75 percent.
The TV talking heads will rejoice that profits are doing extremely well and that productivity, or output per worker hour, is setting records. But the commentators won’t give the reason: companies are still laying off workers and not hiring back ones who were earlier laid off.
The unemployment rate in both the U.S. and San Diego hovers around 10 percent, give or take a hair on each side. But consumer spending is 70 percent of the economy, nationally and locally, and housing is another 5 percent. That’s three very wobbly legs under the stool. As long as unemployment remains so high, how can consumer spending, which dominates the economy, pick up? I interviewed two analysts with excellent track records. You can view these interviews at San Diego Reader.
Why is this happening?
5. To bring about the end to all industrialization and the production of nuclear generated electric power in what they call “the post-industrial zero-growth society”. Excepted are the computer- and service industries. US industries that remain will be exported to countries such as Mexico where abundant slave labor is available. As we saw in 1993, this has become a fact through the passage of the North American Free Trade Agreement, known as NAFTA. Unemployables in the US, in the wake of industrial destruction, will either become opium-heroin and/or cocaine addicts, or become statistics in the elimination of the “excess population” process we know of today as Global 2000 (Educate yourself, 2009)