The fact that keeps coming back to me is our lack of valuable production capacity. When the dust settles, we still don’t make very much that other people want to pay for, except food. Lots of R&D though, (and empty factories) so at least we have something to work with.
The politicians continue to think that consumption is the key to wealth. This is stupid beyond belief.
Yeah, but is the economists, lending institutions, and wall street who put that stupidity in their heads.
"The unemployment rate has remained low, at 4.5 percent. A recent report on retail sales shows a strong beginning to the holiday shopping season across the country -- and I encourage you all to go shopping more." G.W. Bush\December 20, 2006.
I recall reading an analysis of Germany's collapse after WWI that stated that the vast destruction of it's production capacity had a major impact on the massive inflation it suffered. I.E. that it needed goods produced but, since it produced very little, Germany was forced to buy them from "producing countries". Germany, having no production capability of it's own, was forced to pay higher and higher prices.
I have my problems with the domestic auto industry, but I share your concerns about the massive loss of manufacturing capability which has taken place. Once we lose this production knowledge we will never get it back.
And by "production knowledge" I don't mean the assembly line. I mean the knowledge that goes into research, design, building the machinery, tooling, process design, the educational and training infrastructure that supports production, etc.. I am concerned that as we lose more manufacturing capability we've also lost citizens who, picturing only the assembly line, fail to understand all that we are losing.
No, it’s going according to “plan”, namely to offshore any “polluting” industries. It’s for “the environment”. Hm.