The trajectory to the bottom will not change until individual values change. Look at all the posts on ET this year looking for tips and tricks. Full of kids trying to be "trader" and get rich quick. The way we elect public officials has to change. Look at the health care bill. A much needed overhaul mired in committee of senators that represent less than 1% of the population. We have the village idiots in parts of the country no one knows exists electing the same representative forever. With seniority these representatives end up with the most power in congress. Then we're stuck with these village idiots dictating policy because they chair the powerful committees. This has to change. Policy making has to be wrested away from those who put a flag on their lapel and scream USA while defrauding everyone around them.
We have the village idiots in parts of the country no one knows exists electing the same representative forever. With seniority these representatives end up with the most power in congress. ------------------------ You have a valid point but does it matter if we re elect them or not the "losers" end up being "appointed" to some other unelected patronage position.
bidask is right on, the big profits go to those who build thousands of products overseas not the few who do R&D. GS
I left science and went into trading when I saw how low the salaries were. Most of my classmates that were also interested in basic science went for business jobs for the same reason. I recently learned that foreign post-docs working in the U.S. don't have to pay taxes on their stipends like an American post-doc would. Americans won't go into science and engineering until the incentives are there.
We don't need more central planning and social engineering to fix this economy. We need government to become small business friendly. Make startup funds easier to get, lower taxes for small business owners..etc. Small business is the main job provider in the US economy.
Warren Buffett said, America is going to pull out of this one, because of natural way of American people to be innovative. Couldn't find an article, i think it was in NY Times couple months ago. I really do believe in it.
You again, with your great wisdom! Never said protectionism cause the Great Depression, but it certainly hurt the cause. Have you ever taken an economics course? Protectionism is an incredibly terrible thing for an economy. Or perhaps you know more than most if not all world leaders and economists. Protectionism will greatly increase costs. Here, I will start you off with some basic reading material: http://en.wikipedia.org/wiki/Protectionism "Virtually all modern day economists agree that protectionism is harmful in that its costs outweigh the benefits, and that it impedes economic growth.[2][3] Economics Nobel prize winner and trade theorist Paul Krugman once famously stated that, "If there were an Economistâs Creed, it would surely contain the affirmations 'I understand the Principle of Comparative Advantage' and 'I advocate Free Trade'."[4] You can continue to embarrass yourself if you want, but I'd recommend you stop posting.
You are assuming constant M. Historically, government/central bank response to increases in Q has always been to increase M at a pace such that P is always increasing. I don't see why that would change?
Little boy, you continue proving that you have no ability to think, just spew what others say. I don't let economists make up my mind, I look at history & current reality. USA experienced its biggest growth under protectionism. So did Japan. It's not about restricting other nations from trading, it's about supporting your own industrial base so you can produce goods that worth something. But what would you know about producing, you're a loser occupying your parents' basement.
This would not be important, the central bank can affect nominal levels on REAL terms the adjustment would occur regardless of money printing(your income could go up 1000x fold in a massive money printing but prices of rice only up 100x due bots planting rice like hell)