posted on December 26, 2002 11:29:53 AM new
All those other countrys are very much affected by our economy.When our stock markets hit a low for a couple of days,It affects, the Niki,Cac,and Dak.
From what I read,There is an expected crash of all world markets,except the US,Who will limp by.The market(Ours) is in line for another major low, in Aug. of 2003.The bottom has not been seen yet.
Mexico is another country that makes car parts.It is not the country, that is at fault, for cheap looking and inferior parts,The parts and goods are ordered at the cheapest manufacturing methods,By the Companys.
We keep other Countrys "up",Without us they fail,It will be a domino effect.
posted on December 26, 2002 01:11:09 PM new
You better take a rational look at Japan's economy. Japan is already suffering from chasing cheap wages. Japan is in a ten year recession and is now facing deflation and it has nothimg to do with any protectionist regulations.
Japan is no more protectionist than any other country. The US protects industries, steel and agriculture are to name a few. Japan even imports cars from Ohio. Japan is no more protectionist than France or the US.
But what is happening to Japan is happening to the US. The only difference might be that the US is allowing millions of illegal immigrants into the US which gives a short term positive economic blip. Japan will not allow millions of immigrants into their country, if they did the Chinese would flood their country.
In order to participate in free trade, you have to produce something to trade. What the US produces is shrinking as we export the jobs to cheap wage countries.
The exact same thing happened to Rome in its final centuries. The wine, olive oil, and other goods began to be produced in the conquered countries. Instead of selling the goods to Spain, N Africa, Egypt, and Gaul, the jobs and production moved to these regions. Rome and Italy had to begin to import everything. Soon their wealth was disappearing and with it their political, economic, and military power dwindled. You know the rest of the story.
posted on December 26, 2002 01:42:32 PM newJapan is already suffering from chasing cheap wages. Japan is in a ten year recession and is now facing deflation
Our D-I-Ls father, in Japan, says the real estate has been suffering from deflation for two to three years. He sells real estate and said the value of homes in Northern Japan are selling for just above 1/2 what they were a while back. He states many owe more on the homes they've owned for years than they could sell them for now.
I wish your projection, Reamond, was to be proved inaccurate. But I'm afraid you might be proven right.
posted on December 26, 2002 02:07:32 PM new
Every high value added job that can be protected should be.
The push and pull and the ups and downs of capitalism can be controlled and regulated. Regulations were put in place during the depression to even the system out. People have forgotten why we regulate.
While in the "long run" things may even out, in the long run you're dead and in the short run you must eat, feed and educate your kids, have health care, and shelter.
Whenever we deregulate, there is always a hue and cry about how inefficient regulations are and how much money could be made if we deregulated.
Regulations are there to smooth out the highs and lows.
It is akin to comparing two different gambling tables or lotteries. At one table you have a 1 in 6 million chance to win $100 million, but if you lose you lose everyting you bet. The second regulated table pays you 99 cents for every dollar bet and every tenth play it pays $1.50. You don't win much, but you don't lose either.
The idiocy of "free trade" is that we have people producing shoes in countries where no one wears shoes, or they make televisions and have no electricity at their homes.
Now some argue that these workers are working towards getting shoes and electricity. However, that isn't happening. These countries lack the techno-structure and have had these factories plopped down in their country to take advantage of the low wages. If the standard of living were to raise for these workers, guess what? Those factories will leave rather than pay higher wages. There are already factories closing in Mexico and moving to China.
These industries must be developed in these countries, not transplanted from first world countries to take gross advantage of the low wages.
posted on December 26, 2002 03:18:56 PM new
"Every high value added job that can be protected should be. "
That's not true. The Gov't and certain Union companies are full of people who have salaries they don't justify.
Look at United Airlines.
If a company can't deal with market conditions it shuts down.
Also, we are basically all corrupt. We all follow our own needs and greed.
Anyone that says otherwise is repressing it or a hypocrite in my opinion. Yes there are degrees of greed, but for survival market conditions should never be tampered with.
It's Darwinian almost. The strong do survive, and evolve. It's what made America great and what will be it's downfall, because instead of finding ways to stay great many are calling for protectionism which has never been successful.
You lose your edge when you stick your head in the ground.
posted on December 26, 2002 05:45:31 PM new
Unions can not protect high value added jobs. You're confusing high value added jobs with high paying jobs.
No job- no buy.
"New data released on Thursday showed this year's U.S. holiday sales dropped 11 percent from last year. Sales in the 26 days between Thanksgiving and Christmas totaled $113.1 billion, down from $127.3 billion last year, according to ShopperTrak RCT, which tracks retail sales."
That's an 11 percent decline from the xmas after 9-11.
posted on December 26, 2002 07:31:03 PM new
2003 is going to be worse. On the evening news it showed stores full of people returning goods for cash. The stores here are having huge sales again hoping to sell. People just dont have the money.
Right before Christmas,The newscrews
filmed all the people, shopping in the malls
around town.The malls were full of people
looking,and no one was carrying any packages.
posted on December 27, 2002 06:54:30 AM new
Another interesting stat- This is the first time since the 1930s depression that we have had 2 down stock market years in a row.
Another shoe to drop in retail is the profit margin. Some analysts are very concerned that not only are the gross sales down, but the profit margin will be way down due to sale pricing to bring customers in.
By the way, the issues right now in the economy prove exactly why supply side economics is a crock of bull. All the supply you want is out their but if you don't have the money to purchase it makes no difference - if someone was selling $10 bills for $1 and you don't have a dollar, what good is that supply ? You must create the demand by placing money in the pockets of consumers. Demand stimulates supply, supply will not stimulate demand.
