I don't think either I or FranchiseBlade specifically mentioned us getting into war as the starting point. WW2 started in 1939. We officially entered in 1942. And our military deployment was more against Japan than Germany. So I think everyone's in agreement here then. WW2 boosted our economy a great deal. That was suppose to be a joke, but I admit in poor taste. But it also allude to the fact that I was speaking of selling war-time supplies as the reason why we got a huge lift out of the the Great Depression, not the fact that we fought that war.
Can we not debate the causes/solutions of the Great Depression here? Not as if we are going to settle anything.
The causes/solution to the GD are of paramount to the current economic situation. Ben Bernake is an expert on the subject and that is why he is trying everything under the sun to avert a deflationary spiral. It may or may not work,but it is something that must be studied. That is one of the reasons why I can't support Ron Paul or the other gold standard people. The fact that the dollar was pegged gold people have argued is one of the reasons for the great depression.
and why are there ever recessions? anyway, in the last decade we should have let the natural cycle happen instead of trying to create an economy out of housing
Deflation is one of those things that has only really happened on a systematic basis in one developed nation---Japan. And that example is oft-cited, while being surprisingly ill-researched. It's not something you should run monetary policy on. On the other extreme though, you have the Ron Paul/gold standard nuts. Let's peg our currency to a commodity of which we have no idea how much there is left in the world! Fabulous idea. I just think both sides (inflation and deflation hawks) have to moderate their discourse. Of course, easier said then done, seeing as how Ron Paul wants to abolish the Fed, but both sides have some valid points, they're just way too extreme. Disinflation does not equal deflation, does not equal Japan. Inflation does not equal hyperinflation, does not equal the Wiemar Republic.
My theory is that recently, the rate of economic growth has stagnated since the primary drivers of the American economy from 1950 onwards (namely, an explosion in population, and a strong educational system that encouraged innovation and scientific wizardry) have quite simply fallen out of place. In compensation, individuals and firms have moved on to "manufacturing" wealth through increased expectations. All of a sudden, Dogs.com is like the Wright brothers learning to fly. Unfortunately, when the truth hits, it hits hard, and all of that "wealth" is revealed to be what it truly is---nothing. Couple that with the devastating psychological impact of loss...and voila. Fortunately, people are working on some exciting s*** to resolve that, but they will need a West Wing and Congress that is pro-science, and technology. We're talking about a century where technological singularity, manufacturing synthetic life, and human spaceflight to Mars and beyond are possible, and in some cases, within reach already. With peak oil quickly approaching, clean energy and these new technologies have the potential to be that same economic driver that propelled America to such great heights in the first place.
great article on guy who can't get capital for prove solar flashlight business because of failures of other solar companies. now it seems stupid he can't get capital, but the failure of green energy so far is a problem china heavily subsidizes its green energy before we hear that retort. at my last job at an energy marketer, i worked with the guy in charge of green projects. he talked about how in china you have no idea if those projects are making money. green energy is not that close. we need to expose our abundance on natural gas.
I think green energy is a perfect example of an "infant industry" model. Here's to hoping Congress stops shielding the oil companies from the winds of change with antiquated subsidies, and instead offers more support for the budding industry of this century.
Thought this was a interesting take on unemployment: Are jobs obsolete? By Douglas Rushkoff U.S. Postal Service is a new example of human work replaced by computers. Technology affects jobs market as not enough workers needed to run industries revolutionized by the technology. We have to alter our ideas: It's not about jobs, it's about productivity. http://www.cnn.com/2011/OPINION/09/07/rushkoff.jobs.obsolete/index.html?hpt=hp_c1 Spoiler
Agreed. His conclusions are overly idealistic and optomistic given how human nature tends to work, but his basic premise is one that really should be analyzed. Sadly, the entire current economic system would have to completely fall apart before most people would really consider it.
Doubt it'll get that extreme but interesting. Also the postal service simply needs to be privatized with the government remaining as the majority shareholder. The Europeans did this years ago with their postal systems and their solvency has been far superior to that of the American postal service.
oh my! POLITICO Breaking News ------------------------------------------------- The unemployment rate dropped to 8.6 percent in November from 9 percent, the Labor Department reported Friday. The country added 120,000 jobs, a figure that was in line with expectations.
oh my! dowdify! The rate fell from the previous month's 9.0 percent, a move which in part reflected a drop in those looking for jobs. The participation rate dropped to 64 percent, from 64.2 percent in October, representing 315,000 fewer job-seekers. The actual employment level increased by 278,000. The total amount of those without a job fell to 13.3 million. The drop in participation rate is significant in that had the labor force remained steady, the jobless rate would have dropped to 8.8 percent, according to Citigroup calculations. If the labor force had followed trend growth, unemployment would be at 8.9 percent.
Poor basso What will the freaks do when their last remaining talking point is taken away? Unemployment is falling and indicators show the economy is rebounding.
