U.S. second-quarter growth trimmed to 1.1 percent; consumer spending raised
I am shocked, … shocked, … I tell you.
The surprise is that many folks are going to vote for more of this. Oh, the ignorant public.
I’m not surprised by it anymore. More like saddened and angry.
And it all the fault of the American consumer. We are buying too much stuff we don’t need. Excessive consumerism it too blame.
[sarcasm … right???]
Buying more stuff makes GDP go up.
“Excessive” and “consumerism” are subjective terms.
However, buying more stuff at good prices … or stuff that increases productivity … and/or is part of a complete and usable facility … makes GDP go up even faster.
In reality, what is happening is that all spending is going down.
For example, if you buy the components and then build a solar electric system, then you are incurring costs which will not give you a complete an usable system, because when the sun doesn’t shine you don’t get any electricity. AND the total cost is about six times higher than the cost of hydro power or coal fired power or nuclear power.
True, but how do you increase demand for the products or services on a macro level? It’s obvious the central banks’ policies aren’t working. If anything they are only stifling the circulation of money.
Under free market economics, each producer has to figure out ways to increase demand.
AND they generally are very successful!
They show people the benefits of their various products.
They give away free samples so people can try it.
They hire airplanes to tow banners.
Sometimes they even give selective pricing offers.
All kinds of ways.
They even hire attractive people, … athletes, beauty queens, men in business suits … to show how easy it is to open the door of the fridge. Or how fast their cars will go.
One of the biggest problems is that so many people expect the Fed, or the President, or the Congress to solve their problems. A lot of people need to take the jobs that are available and live responsibly rather than sitting at home waiting for the job they wish they had. It is possible to advance quickly if you stand out in a job that you are overqualified for, but very difficult to explain that you have been out of the workforce waiting for the perfect opportunity. I did that after the 1982 recession when the unemployment rate rose above 10%. Human nature has not changed that much since then.
I admit that is unlikely and counter-cultural. Changing the culture will take several generations and right now it is moving down the wrong road. The macro economy changes when millions of people change on the micro level.
Let me start with; we need government in our lives. We just need them working for us!
Great that you mentioned the early eighties. That was the start of the political mindset of not worrying about astronomical deficits and trickle-down theory where everyone was a winner. As long as government could spend freely and present it as some utopian that they helped create…they were fine. Then came the great idea; if we ship everything overseas to third world countries regardless of their political struggles, that would provide us cheap goods. Never once addressing the issues of the ramification to our local economy.
Well that amalgamation of political mindsets has delivered us what we are encountering today.
This is more apparent in small towns where Main Street is now a ghostly existence of what once helped support a local community. The worst part is that people insensitive to the struggles of others are now proclaiming; it’s your fault for being lazy! Not exactly Christianity fellowship.
We can’t blame everything on those that are among the weak, but it is easy.
The truth is that you are living in a different America than in those roaring early eighties. Yes, human nature has not changed…