the roots of the root problems

Discussion in 'Economics' started by Mav88, Nov 11, 2008.

  1. Mav88


    why do we find ourselves in the supine position? we all keep running it through our heads and there is a lot of good commentary, but hey we need another thread

    1) Trade. The benefits of trade lie in the law of comparative advantage. The problem is that americans have no absolute advantages anymore where we used to own them all. Foreigners are more educated and will work for cheaper wages, that spells big problems in trading with them. The things that an american worker have advantage in is getting smaller everyday.

    2) education. We are shifting to an information based economy which puts a premuim on smarts and education while american kids, especially minorities, are caring less about learning and competing. Why study when you can be a millionaire playing ball? Also we accept tens of millions of uneducated illegal immigrants who do nothing to boost advantage other than to drive down home wages. They cost more than they are worth.

    3) oil

    4) entitlement politics- getting more than you produce

    5) demographics. Everyone feels entitled to retiring at 60, and cultural divides are growing not shrinking. Multiculturalism doesn't have a bit of supporting evidence and there are a lot of counter examples.

    6) bailouts, supreme waste and diversion of resources to the same fuckers who keep scewing up- in other words socialism.

    7) war, unsmartly fought

    8) stock trad3r
  2. No sense overestimating the competition, stupidity is pretty much universal. Just focus on being on the right side of the trade. Remember the great saying "those that don't study history are doomed to being on the wrong side of the trade"
  3. Remember the great saying.

    "The early bird caught the falling knife and got his worm cut in half."
  4. just21


    So why is the dollar going up then?
  5. 151


    Remember the great saying

    "a bailout a day keeps the depression away"
  6. TGregg


    Or that other one:

    "A stitch in time needs nine more later."

  7. It likes it up there, go figure...
  8. I really don't think any of these is the root. Here's some food for thought:

    One "root" is simply the massive, 1920's-esque debt levels that we've accrued with no signs of stopping...
  9. Mav88


    Shoeshine, good articles and points, but I would argue that the root cause of this debt is points 1,2 4-7.

    Economics is all about the psychology and productivity of individuals at its root, consumers bear much of the blame. Gov't explains about 20% of the increase in debt as a percentage of GDP, the other 180% or so is the fault of the average american.
    #10     Nov 12, 2008