To make the perfect storm you need several ingredients not just one.
You need sufficient humidity. You need two conflicting temperatures. You need varying pressures.
This then creates the wind, the rain and often, lightning and thunder.
What drives the perfect storm is disparity.
In economics, the same forces are at work.
The disparity between rich and poor. The disparity between the customer wealth base and producer wealth base. The wealth being pulled out from one location and shifted to another.
Inept and greedy businessmen are part of the equation. However they can't do their bit without other elements. Governmental controls on wages facilitated the illegal labor and outsourcing which drove wealth out of the customer base, which in-turn weakened the foundations of these businesses.
And, now, we can recognize that shifting US wealth overseas into the hands of those living in China, India and Mexico is unsustainable wealth for them and counter-productive to US business stability. They need to produce their own companies which hire and market to their own customer base. The global wealth cycle is inherently unstable. We also see that government interference in wages was the KEY FAILED REGULATION that brought about this mess.
Our companies would be doing fine, our nation's working force would be ever more prosperous if we had no interference in wages. We would have a BOOMING middle class like that created in 1952-58 under Eisenhower after he dismantled Truman & FDRs price controls and state interference.
That is what we need to return to. Every American should have the FREEDOM to set their own wage with an employer. That way the less skilled can earn money and WORK instead of sitting around feeling useless collecting government handouts!
The foreign workforce and the subsequent weak domestic incomes, the three years of gas price hikes by hoarders of oil overseas by hostile anti-US investors and incompetent and greedy US oil companies who exploited the hoarding and kept refining limited, the inept "businessmen" and parasitic CEOs looting our oldest and proudest companies instead of producing wealth with them, trillions of dollars worth of BOGUS loans on equally inflated BOGUS property values - ALL these contributed to the perfect economic storm - which was ignited when overseas investors INDUCED bank failure with MASSIVE withdrawals designed to BREAK the US banking system.
That's what I'm trying to say.
To say it's just the businessmen is absurd. Most (95%+) businessmen are honest, hardworking folks who can't stand seeing the corruption and are confounded as to how everything got so messed up.
Off Topic » in reply to What he really means is...
The perfect storm
The whole thread (44 posts)
- I do not understand something about *this* recession...[big surprise]
- There was well over 200 billion worth of tax cuts in that stimulus package
- Once the markers were called...
- (targeted) government spending produces more jobs than tax cuts.
- re: I do not understand something about *this* recession
- Money
- Because this time, the tax cut came first.
