According this, worse economic woes are ahead of us. Well, all I have to say to that is DUH!!! Anybody that didn’t see this coming is DUH – DUH – DUMB!
Back in the 80’s, we exported all the icky low paying manufacturing jobs because “We’re going to become a service economy.”. Basically, we don’t make shit any more. What we do make here is actually not made here, it’s assembled here from parts that got made somewhere else. Hang on to this idea, since we’ll revisit it in a bit. The manufacturing jobs are gone and they’re never going to come back.
So that we we converted to “service jobs”, and for a while we raked in some better pay. But it was temporary. Now those jobs are being sent overseas. So basically, we don’t make shit and we don’t do shit. In an economy where we don’t make shit and we don’t shit, we don’t buy shit. That means those that aren’t working don’t eat out a lot. They don’t get haircuts. They start canceling gym memberships. They don’t get the car detailed. No ballet lessons for the girls. No soccer clubs for the boys. That puts a world of hurt on all the local mom & pop businesses. In turn, they start laying off staff.
Our economy is driven solely by consumption. However, when people aren’t working, they’re not consuming. They’re cutting back. Pinching the proverbial pennies. Bush’s idea to get us out of this is to send $600 stimulus checks. Remember what we were talking about in the beginning. We don’t make shit any more. No, we get our stimulus check and rush off to Wal-Mart, Best Buy, or where ever else to buy that SuperWidget we wanted. Wanna guess how much of that stimulus check stayed here in the States? Seriously, who’s economy are we stimulating? If you want to stimulate the economy, lighten up on the small business loans from the SBA. Create jobs locally, not in Singaore or Bagalore or Timor. That would do more, long term than $600 each.