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There is a lack of production in key industries though. Yes, Americans have managed to purchase more stuff. There is a cost to this production of the items th
by yequalsx 16y ago
There is a lack of production in key industries though.
Yes, Americans have managed to purchase more stuff. There is a cost to this production of the items that we import that isn't currently being paid for. The damage to the environment is one notable such cost. It doesn't show up in the economic charts as a cost but it is a real cost nonetheless.
Also, a large part of our ability to purchase 'more of these items' comes in the form of a massive increase in our debt. At some point the party will stop. Our present system is not sustainable for much longer unless changes are made.
- yummyfajitas 16y agoWhat makes an industry a "key industry"? I did a search for broad categories of production (http://research.stlouisfed.org/fred2/search/industrial+production/1 http://research.stlouisfed.org/fred2/search/industrial+produ... ), the only one where I could find a decline was mining: http://research.stlouisfed.org/fred2/series/IPMINE http://research.stlouisfed.org/fred2/series/IPMINE I suppose I can see some strategic issues with mining, particularly given China's recent protectionism regarding rare earths. But on the other hand, if they really cause us problems, we can quickly make them capitulate by repudiating all their bonds and cutting off trade. Also, I agree that the current "party" in which China taxes their citizens to lower the cost of goods they send to us will eventually stop. But it's unclear to me what this has to do with our increased production levels - in fact, such a move will likely increase our production levels.