The American Economy as of 2006-2007 A.D.
The New York Stock Exchange opened for business on 4-22-1903. A little more then 100 years ago this tool for exchanging began and people put almost everything they have into it with high hopes of retirement. It is a smart thing to invest, but to think this will be a reliable source of income with the coming woes of our economy is unwise.
It doesn’t take a genius to figure out that if your country can’t manufacture things the world needs then you offer nothing and your demise is only a matter of time.
There will always be countries out there that will do it for less. The United States had the upper hand after World War II. They had everything in place to manufacture the things the world needed along with the resources to do it. There were lots of new things on the market and room to improve. Every country that is a player in the world economy has now caught up and they’re passing us on how to do it cheaper than ever before.
We’ve gotten used to a lavish lifestyle because we were the ones that can make the things the world needed to buy. Everything we buy is practically outsourced these days. The Stock Market thrives on profit earnings and they expect that to increase every quarter. If a company fails to meet that expectation then their stock and company is in danger of falling apart. Every company is constantly trying to find cost cutting measures, but it’s made worse when the stock holders are demanding increases so their stock makes significant jumps in value.
The United States work force expects incentives such as Pensions, 401k Plans, and Health care to name a few. Some foreign worker is happy to just put bread on the table and will do your job for 99% less than you expect and will do it with no benefits.
There is no safety in a Union either. You don’t think companies aren’t already planning on finding a way to remove American labor from touching their products? I would have no doubt that all American companies that currently operate within the United States are exploring other ways to get the job done to avoid Labor Unions. They would save tons of money not paying out law suites, or raising wages and benefits to suite the Labor disputes.
Until we can once again create a product that no other country is capable of and they have to have it, then we are doomed as a functioning economy. These new jobs they are creating are actually laughable. They are trying to reclassify the fast food industry as a manufacturing job - News Link. It would be very interesting to see what these “New” jobs pay.
When they say unemployment claims are down that is because after so many months you can no longer make an unemployment claim. There are still many people unemployed on top of the new ones that are reported monthly. Larger companies continue to lay off mass amounts of workers.
It doesn’t matter who’s in office, if you can’t create something the world needs then you are out of the game and then your fall begins. It will pick up momentum soon enough with the rising cost of crude oil. This doesn’t mean it costs more to drive to work, it means everything you buy will go up, heating and cooling your home among other things.
Has any blue collar worker ever retired from his 401k yet? They make grand promises that these investments will make you a well off person by the time you retire. The Enron people were ruined from lying executives. They now have nothing. It would be no shock to me that other companies are finding ways to "adjust" data in hopes to pick up the slack the following quarters. They are stressing every quarter to make their stock holders happy by having a great outlook. In case your living in a hole, then you now realize they’re doing this by outsourcing your job to boost earnings. In case you missed the Peak Oil crisis article have a read by following this link. - Peak Oil Crisis
If we took away all the 401k money being dumped into the Stock Market, what would be the demand and value of those stocks? 401k has helped some make large amounts of money, but with all that money floating around it's also created over valued stocks because there is plenty of money being dumped into the market to buy these stocks up.
Do you know why they want to take Social Security and invest it into the markets? To save Social Security or to make all their buddies rich? They want to create even more false demand for these over valued stocks by taking this money and putting it into the market. The costs to manage this new system along with the risk would put Americans at greater risk then if we just kept the system the way it is (See the above link to articles dealing with this problem)
Credit Card Debt
Another major problem is people living off their credit cards. I myself pay my balance off every month no matter what it gets up to. Most Americans have multiple credit cards and use one to pay off the other. Most are only paying the minimum amount due which means they will never get out of their debt unless they come into large quantities of money (which is unlikely). This is probably why there is now a record number of home foreclosures as people can't keep up with the bills they've created for themselves. Americans and the rest of the world are living beyond their means of life by purchasing things they don't need.
This is a serious problem and our economy is relying on these people to buy products. Now they are topping off by paying the minimum due on their credit cards, so look for a fall in the demand for goods. This will then mean more lay offs because no one is buying up all these useless toys.
Here is a video link which is free to watch on PBS discussing the ever increasing problem with American Credit Debt.
China is thanking each and everyone of you
I’m baffled how clueless American are. They run to that Superstore™ who offers everything made in China. You save a few dollars, but the end result is you’ve contributed to your own demise. The Superstore™ claims the money you save will be used to go back into the economy. That is about the funniest thing I’ve ever heard. The money you save is then spent on something else that’s not made in America. Most likely what you saved is then spent at the very same Superstore™.
You get caught in the vicious cycle of buying there because no one can make items as cheap as China.
This certain Superstore™ also drives down prices and puts the squeeze on its suppliers and literally forces them to outsource or this Superstore™ will cease to carry their product. They keep doing it so they will be the main supplier everyone wants to buy from because they have the lowest prices. They want low prices, yet stock holders want more profits. Thats a terrible mix. That means they have to mass produce at low cost to sell enough to turn a high profit. This won't be done in the United States because we believe in fair pay for labor and health benefits and so forth. Won't it be great when we're all working for them singing their morning mantras and become a door greeter? It makes me want to gag to think about it.
I almost forgot to mention this great store rarley pays overtime to employees because they cut off their hours so they don't have to pay them health care or overtime. What a great place to work huh? Get used to it because your feeding the monster and other companies will follow suite. In case this is still a mystery for whom I'm talking about here's a fantastic KLRU viewing of you guessed it ....
I recently ran across this web blog. It's nice to know there are plenty of others who see Walmart Tactics at work. I'm a professional in a professional field, but I write this because I know other companies will become like Walmart and I feel sorry for the workers who have to put up with this after Walmart comes to town and puts everyone out of business.
I hope anyone reading this will stop going there and support your local companies more even if it might cost a little more.
There's another topic all together, "Culture". We have no small town charm anymore since all the chain stores crept in and took that charm away. If I fly into another town in America I'm bound to see the same crap than if I would of just stayed home. I want to fly somewhere and see a place that hasn't been changed by chain stores and converted forest land into parking lots for these places. How nice it is to see something fresh and new that hasn't infected every city in America.
The steps to crumbling an empire have already begun. Read this link on our Trade deficit. There are numerous articles beyond just this short one.
"The U.S. trade deficit soared to an all-time high of $725.8 billion US in 2005, up 17 % over the previous year, as Americans imported record amounts of oil, food, cars and other consumer goods." - News Link
Did you also know the Federal Reserve is not owned by the Government? It's just named that to make people think it is. If you really want to know what drives the economy up and down then this link will open your mind. There are some facts on the web page and a DVD you can buy to watch the 3.5 hour program. It's worth every dime.
It's not conspiracy theories, it uses economists, founding father quotes, and ex presidents among the countless other references. - The Money Masters