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To: bruinbirdman
Consumer spending currently makes up about 70% of U.S. gross domestic product.

The US and therefore the world economy has been based on consumer spending for many years. What I have never seen is an explanation of how such an economy can be truly sound.

It seems unbalanced to me, but I don't know enough economic theory to explain why.

4 posted on 05/02/2009 3:04:29 AM PDT by Sherman Logan (Everyone has a right to his own opinion, but not to his own facts.)
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To: Sherman Logan

Read the Wealth of Nations.

I would not worry too much since Obama is moving us to a Socialist State where the government will take it before you can save it or spend it.

Socialism works until the money runs out (Margret Thacher).


5 posted on 05/02/2009 3:19:16 AM PDT by KeyWest (Help stamp out taglines! They are Obamanations.)
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To: Sherman Logan
Consumer spending currently makes up about 70% of U.S. gross domestic product. And that right there is the truth that the goobermint is fearing as we head deeper and faster into economic depression.

You are correct in that a consumption / retail based society cannot economically prosper when running $300 billion / mo trade deficits.

Our own goobermint succumbed to corporate wishes and foreign blackmail to promote 'free trade'. Though trade is good, there is no such thing as free trade as the US manufacturing worker cannot compete against workers in India and Asia whom monthly incomes average $150-$200.

Until the US consumer wakes up and reduces spending to focus as best as possible on American made, we as a nation, will continue the slide into economic poverty.

At this time, we have approximately 206,000 empty rail freight cars cars siting idle on spurs. Connected, those would stretch from New York City to Salt LAke City...get the picture?

8 posted on 05/02/2009 4:01:54 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: Sherman Logan
The US and therefore the world economy has been based on consumer spending for many years. What I have never seen is an explanation of how such an economy can be truly sound.

Oh, there were plenty around here who tried. It seems they don't come around very much anymore.

10 posted on 05/02/2009 5:16:45 AM PDT by raybbr (It's going to get a lot worse now that the anchor babies are voting!)
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