posted on Nov, 29 2012 @ 12:32 AM
We decided that GDP no long means Gross Domestic Production and instead went for Greater Dividend Projections. So rather than reinvest in R&D, methods
and manufacturing, corporate profits went to senior staff and shareholders. NAFTA and other Free Trade Agreements stripped the tariffs that protected
US workers...who wanted their children to have management positions rather than production positions.
While the post war boom was great, not continuing to have a domestic nor global market for what was becoming super efficient production quantities and
an unwillingness to diversify manufacturing practices to slow down production by retooling plants for additional operations eliminated the need for
the number of factories. Deregulation lowered transportation costs in cross-country shipping that suddenly the rust belt with its higher taxes was no
longer a necessary evil. Add to that, no US steel company wanted to engage in a better way to forge steel that was both cheeper and less prone to
rust. Japan was willing and suddenly those cheep imports were not the rust buckets they used to be. Then consumers discovered their longer engine life
and fuel efficiency.
The 80's were the last days of sufficient single income households as rising costs for everyday goods due to inflation forced families to become dual
income households. Children growing up alone as latchkey kids discovered their own value sets for morality, primarily consisting of expensive gifts to
themselves as young adults. CD players, DVD players, Video Game Consoles, Computers, Laptops, iPods, etc flourished as top consumer purchases while
less legal forms of escapism was used by those that could not afford such higher dollar items.
So here we are today with student loan debt higher than credit card debt, 1) because it cannot be discharged, 2) because the only way to get "a good
job" requires a degree to be seriously considered no matter how well the interview went 3) there are not sufficient amounts of "good jobs" to pay
off that student loan debt and 5) credit is not available due to the credit score being too high because of the debt to income ratio. And with number
5, no new houses, no new car purchases, no tourism, no investment (which are all big factors to job creation/retention).
But if you want to be political, borrowing money in order to give it to banks to invest in the stock market in order keep investors and other
financial market watchers from freaking out did absolutely zero to boost consumer confidence. In fact, more people do not have bank accounts now
because of their anger over the whole scheme which they saw as handing money to the rich while doing little for the people in need. Honestly that
money borrowed would have been better spent if they handed out $10000 to every US citizen over the age of 18. The banks would have still received it
in the end due to the trickle up method of consumerism, investments, small business start ups and rainy day savings. The side effect is, that
thousands of jobs would have been created or retained just to keep up with the demands of manufacturing, sales and advertising of products...because
the vast majority would have spent that money like they hit the lottery.