Economy is set on idle: Nation's use of capacity is nearing a modern low

Milwaukee Journal-Sentinel ^ | June 28, 2003 | JOHN SCHMID

[jammer]

Don't quite know where to start, but you've made several points. The first is the mention of well-known RINOs, as if that invalidated my point that it's not the Dims voting for Dims that are responsible for this mess. That's what I got from your post that I replied to. My reply was to remind you that the state of things cannot be laid entirely at the feet of one party. If you're excluding RINOs, then many, many people would continue with Dole, GHW Bush, Kemp, many neo-cons, Trent "Chemical Weapons Treaty" Lott, and now, with the Prescription Plan, our current President. Sure, Democrats are almost exclusively bad; but we have many elected Republicans just as bad. Don't lay it all on Democrats.

I, with you, couldn't care less if homosexuals are allowed to do what they want in private (you put it more graphically and more inflammatorily). I DO care when the mechanism of that tolerance involves stripping the last vestiges of the right of a state to make its own laws, the same as Roe v. Wade. It's bad law. I'll go farther: it should be legal for homosexuals to do what they want in private (IMO); but the change needs to be made in the laws, not by unvoted upon Amendment to the Constitution.

The comment about Michigan is not worth replying to, except to say that Michigan letting "a few blacks into law school" is one of the poorest summaries of the issues that I've read.

You are right in your last sentence: it will have to get a lot worse. I believe it will, sooner rather than later.

[snopercod]

I just subscribed to CE-Weekly after a long hiatus. (Contract Engineering). I was shocked. It's only 30 pages long now - it used to be 100-200.

America is screwed...

[snopercod]

Do they count as exports? ROFL! Probably do. Their next annual report will be glowing!

[doosee]

We went into Iraq to secure the second largest oil reserve in the world because we need the oil for our economic recovery.

That is my thinking also however I will allow that our leaders have a fundamental belief that a tyrant should not be permitted to brutally control and abuse an entire population. Admittedly though it is a lot easier to turn a blind eye to Rawanda and other non essential places. The point is if gasoline and diesel and home heating oil drops by 40% in the US that then is the best tax cut W could ever give us, and Congress cant vote on it to screw it up.....

[doosee]

The comment about Michigan is not worth replying to, except to say that Michigan letting "a few blacks into law school" is one of the poorest summaries of the issues that I've read.

You are right, that is a pretty weak comment. What happens with me is that I have a tendency to post something quick and to the point as like most people (not all) I dont have a lot of time to devote to posting. However, let me speculate on some numbers. Lets say there are now 2800 law schoolers at Michigan or 700 per year. (Wild guess) Lets say with affirmative action they let in 10% or 70 blacks. Without AA it likely would be around 5% or 35 blacks. So, in one of the largest universities in the country we get 35 extra black attorneys, not all of who will practice law. In a nation of nearly 400 million people, that doesnt cause me any grief at all. Maybe I am minimalizing an important point but that is what I meant by a "few blacks". By the way, my comment was in no way racist if you took it that way. I am in favor of any person who wants to upgrade him or herself.

[sourcery]

Tight money in 1930s was hardly the answer (and yes, the money was excessively tight, that was Freidman's point and it has not been refuted), so why think it would work here?

Not so at all. See:

• America's Great Depression (Murray Rothbard's refutation of Friedman)
• Macro Seduction (Friedman's recantation)
• Economic Profit vs. Accounting Profit (explanation of what the Austrians mean by "real savings")

[jammer]

No, I didn't take it as racist--I like to think that you and I and most on here can disagree, even vehemently, without questioning the motives and honor of the people we disagree with.

Your point: it is an insignificant number. But, I see from your profile that you are almost as old as I. I know that in 30 years or so you've seen the camel's nose in the tent many, many times in many, many areas that have grown to fill up the tent. My tolerance for those noses is ended--the damned things should be smacked ASAP. I think that the problem comes from thinking it is a small thing--forgetting the principle--and ignoring it until too late. It has happened with firearms, with affirmative action, with highway fund appropriations and seatbelts, with smoking, and with everything else in American life. The idea of diversity for its own sake and without regard for merit has metastasized throughout our institutions, public and private, and is destroying us, IMO. This frog is saying the water is too hot--let's turn the heat off.

One other thing, then to a company barbecue: if you pose your objection to my argument with state's rights, i.e., Michigan can do what it wants, then I am with you totally, provided that all states can do it the way that they want.

[doosee]

One other thing, then to a company barbecue: if you pose your objection to my argument with state's rights, i.e., Michigan can do what it wants, then I am with you totally, provided that all states can do it the way that they want.


I support states rights to the fullest. Enjoy the barbecue. I will catch up with you later....

[Moonman62]

We need a new invention to replace the explosive tech market of the 90's. Where's Algore when we need a new "internet?"

Wasn't the internet invented in the 1960's? It wasn't until the PC market hit critical mass with an attractive price point that it took off. The invention we need is already out there.

[Moonman62]

That could be done - though I would wonder why existing concerns can't find anything to be done with their excess capacity.

Why didn't established companies add any net jobs during the Reagan economic expansion that lasted 17 years? I look at our problem as excess resources, rather than excess capacity. Leftists look at the problem as excess capacity, because they don't want to have the government cut back for the sake of allowing the private sector to keep more of its resources. Austrian economists look at the problem as excess capacity, because they love to pick at the remains left by human misery.

[lonestar]

It wasn't until the PC market hit critical mass with an attractive price point that it took off.

I know that! LOL!

Are you thinking of a specific "new invention" or, are you speculating?

[taxcontrol]

Airlines these days fill little more than half the seats on their planes

---

What???? - I don't believe it for a min. I've been 100% travel since Dec and have YET to be on a flight less than 75% full. (Toronto, Newark, Orlando, Denver, Minneapolis, and Midway)

[WOSG]

I am sorry but your are taking an off-the-cuff comment from Friedman at 91 on a general point, whereas I was speaking specifically of 1930s situation. Monetary policy is not be-all-end-all in anyone's book. I am merely arguing the notion that we call monetary policy "loose" when real credit volumes are drastically shrinking. for example, Japan has had real deflation and near-zero interest rates - loose or tight?

from the FT Friedman article: After a long pause, he agrees: "You form a philosophy at a certain stage and for the rest of your life it dominates. On the big issues of policy I don't think there is anything I've changed my mind about."

Anyway, thanks for the links.

[grania]

He's (ie: Dean) a fruit loop who will be back to peddling colidal silver by November of next year.

Let's just home the nation isn't in the mood for breakfast, come election day. (metaphorically speaking)

[liberalnot]

who to blame but the airlines themselves, in part, for 9-11. remember in the reagan years airlines had air marshalls? but the airlines quit that because it was "too expensive". nevermind that the israeli airline realized that you got to have security.

in part, send the bill to the arabs. saudi arabia would be a good start. hey, look dude! here's what your resident did to our industry, now pay up. there ought to be some lawyers interested in doing this.

[TheMole]

That line about half-full flights struck me as ridiculous also. I've flown about 8 times in the past 18 months (Vancouver, Calgary, Toronto, Seattle, San Jose, Los Angeles) and every plane was packed. In fact, it seems clear that if they aren't full they get cancelled, and so travellers in places like San Jose can get stuck there for another day or two until there are enough passengers to fill up a plane to Seattle or wherever it is they're trying to go.

[xrp]

The Internet's birth was in the late 1960s. 1969, if I am correct. TCP/IP, the mainstay of Internet "talking" was written in the early 1980s. Windows 95 brought to the consumer masses an easy way to connect to and use the Internet. If anyone, we have Microsoft to thank for the Internet explosion.

[garbanzo]

I look at our problem as excess resources, rather than excess capacity.

But here's the problem - that no one seems to want to exploit these resources via taking out loans to develop these resources into something more useful. There has to be an economic message in that the expected long term return is much less than the cost, i.e. that it isn't profitable to convert the excess capacity into something useful and with interest rates as low as they are that's troubling.

[technochick99]

Actually, I think the better way for the writer to phrase it as that seat usage versus supply is at 50%. If you have 10 planes flying fully sold out, and then demand drops by half, the airlines respond by cutting the number of flights to 5. Thus, the flights you are on seem just as crowded to you as always, but the airlines see the real numbers.

[Iris7]

You are in agreement with the Big Boys on the need not to liquidate the bad debt, it seems. I believe liquidation would have effects that are impossible for the political class to accept. For this reason what needs doing will not be done until events force the issue.

And why in the world would I be interested in World Com bonds, of all things?