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cornopean
Forum Elder
Joined: 20 Dec 2006
Posts: 3576
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 Posted: Tue Apr 07, 2009 2:17 am Post subject: |
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| Timetheos wrote: |
Sure it is. First, if you don't like it, you can move to a different country or state. |
and people are leaving michigan in droves.
Since 2001, migration has cost Michigan 465,000 people, the equivalent of the combined populations of Grand Rapids, Warren and Sterling Heights -- the state's second-, third- and fourth-largest cities.
Population loss of that magnitude is so rare that its impact has never been studied.
http://www.detnews.com/article.....state?fark |
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Portland
Newbie
Joined: 13 Feb 2008
Posts: 15
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| Posted: Wed Jun 10, 2009 11:10 pm Post subject: |
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I have been reading your argument back and forth I do not think we can use the great depression and or any other low point in American financial history as reference because the type of economy we now have in terms of what fixes it.
prior to the 1980's our country was a production based economy, however we can learn the three things our country cannot handle at once.
1, High Taxes
2, High Unemployment
3, Low Production Yield
Because we are now a Service based Economy, production yield is through other countries or areas of the world such as Asia.
We are now facing High Unemployment and a real possibility of High Taxes.
The Danger is this. Lets take a standard wallet made in China, worth $15.00. High unemployment or high taxes stops me from buying the wallet at $15.00, Ross (company) will then have a excess of wallets and after a time will sell them for $7.99 or so to get them off the selves. Ross will then buy half of what they bought before because they expect to sell less. The factory in China will see a drop in sells of wallets and will find they have made too many. They will either cut workers or move on to another product. Thus limiting the supply. The Wallet will go up in price to $20 or $30 as supplies drop. With High Unemployment and High Taxes and a Low production yield, inflation is guaranteed.
We are already seeing the effects of too many products in Japan, if anyone has been following their economy it is dropping like a rock in electronics and automobiles. In China back in January about 20 million Chinese workers lost their jobs. In the last three months the Chinese Government was trying really hard to get their people to buy the excess products, such as cars.
I think we have about a year and a half before we see the excess supplies used up, and if the economy in Europe or America has not recovered by then a depression unlike one we have seen before will hit us.
What do I think? I think the Depression is not here yet... |
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