The Economy

[rwh11385]

He also mentioned that the highest payed soldiers who work for Blackwater get 650 dollars a day, but the U.S. government (and therefore us taxpayers) are charged 1200 dollars for these most elite soldiers. Paying private corporations enormous sums of money to do work for the government ensures that most of the money will go to the heads of those corporations, which means it will have difficulty getting back into the economy and will be locked up.

For people on salary, typically 40% in addition is in employee benefits. Take into account higher risk and probably higher life insurance covering them, and you make assume 50% for argument's sake. Take that into consideration, and general administration and the difference between soldier pay and government expense does not seem radical at all.

And for americans and an american company... I can only guess what kind of insurance company they are going through... and where do the soldiers families consume? Back home.

Very few corporations "lock up" their money. Much of it goes into investing, in their own company or the financial market. Perhaps some of this in speculating in oil, or investing abroad, but the same investment from abroad comes to us. As long as we have good productivity and returns (considering currency exchange rates) other countries will still invest here (and help our economy).

Someone in the military who made contracts said most of the cost of items are spread evenly across all in some occasions, so maybe a hammer is labeled more expensive, but really X good is written as cheaper than it ought to be.

That, or it is just a creative way of hiding where money is really going. Considering all the top secret things the government does with defense, I don't think we would really want what they are really doing public.

[nando]

downturns like this are just like the boom times - everyone thinks it will go on for ever and ever. So expect doom and gloom for a while, and yes there are huge problems to overcome, but I wouldn't expect it to stay like this forever.

[delatlanta1281]

Cyclicle
Cost of technology and manufacturing
Devaluizing american jobs.
Get rich quick from the average Joe to the largest american companies.

The poor and what's left of the middle class will feel it first, then when they are suferring (as they have been in housing and ability to spend their salaries) the larger companies/ government will have to bail the country out and take responsability for their prior actions.
Example
Schooner Tuna
The fault lies in more than large companies. It lies in all of us as well. After all, we have an ELECTED government, and ELECTED officials in our public companies. Figure out how to stretch your dollar and buy a helmet. It's gonna get a bit worse.
For all of you who haven't voted or don't plan on it b/c you don't like your coices, vote anyway. This is the best year for the masses to be heard in a loooooooooong time. With the young people being more informed than ever..... we should be able to start a change.

[e30love]

We are all to blame

[e30love]

downturns like this are just like the boom times - everyone thinks it will go on for ever and ever. So expect doom and gloom for a while, and yes there are huge problems to overcome, but I wouldn't expect it to stay like this forever.

Things have always turned around and things could always be worse

[Hallen]

Cyclicle
Cost of technology and manufacturing
Devaluizing american jobs.
Get rich quick from the average Joe to the largest american companies.

The poor and what's left of the middle class will feel it first, then when they are suferring

young people being more informed than ever..... we should be able to start a change.

What's left of the middle class??? What do you mean. The middle class is still by far the vast majority of America. Yes, we feel economic change more quickly than the rich, but what is new?

<rant>Using the stock market like a casino is a huge problem. Rampant overpopulation is a huge problem.

Paying corporate leaders with stock options is a problem.

Catering to the short term whims of the stock market is probably the single biggest problem with US companies. Dumb-ass day traders using their "systems" to bet on stocks really screw things up too. That isn't investing, that is Las Vegas in New York.

And yes, the problem lies with us. Greed and stupid business practices exercised by individuals is a big problem... usually self correcting without major problems though. But, the bigger problem is our incessant need to pay $.03 less for that widget by going to Wallmart and buying the crap from China instead of buying something of slightly better quality made somewhere closer. We drive jobs overseas, not corporations. But are you really willing to pay for a sock made by a US employee that costs $10 a pair if you can get the exact same thing for $1.00 and it was made in Taiwan? As long as there are 3rd world countries, there will always be general labor jobs moved overseas.

Our other issue is competition for oil. As China and other third world nations become more industrialized and with their stupidly high levels of population, we will have to keep paying more and more for oil because the world can't produce it fast enough. We have made huge mistakes in the past by not preparing ourselves for now by tapping our own sources and having that supply ready when what is happening now happens. Stupid, very stupid. But the Envirowhackos don't think about that, they just want to force us all back into the 1800's and eat tree bark.

There are huge opportunities for US companies overseas too, but because free trade does not exist with most of these countries, we get the short end of the stick. What we should be doing is slamming these countries with tariffs and barriers until they start dropping their barriers. But that would be bad for business in the short term and lord knows, those roulette rolling day traders in the market would never stand for that. </rant>

[z31maniac]

But are you really willing to pay for a sock made by a US employee that costs $10 a pair if you can get the exact same thing for $1.00 and it was made in Taiwan?

I'd love to be able to not shop at Wal-Mart, I hate that place. But being in a small college town, we've got three choices for grocery shopping.

$100 buys twice as much food at wally world, than at the grocery store.

Wish I made enough money to be able to do that, most don't.

[Massive Lee]

One day, people will realize that the $1 saving they did by purchasing an asian-made product will cost $2 to the society. When one person buy a cheaper "foreign" product, he may save a few $$$, but he also sees a neighbour loose his job... Which starts costing the society. Does China buy US-made products? Nop. So why buy China-made ones?

[Massive Lee]

... but because free trade does not exist with most of these countries...

Free trade doesn't exist in the US either. Or only if it benefits the US. Look at the Canadian lumber wood dispute. That's no free trade. US is taxing imported wood at a very high rate. Even Mexico is tired of the one-way process. Which is why countries from Sout-America have created their own "zone" and will not adhere the Canada-US-Mexico agreement.

[trashcop 80s 80s]

$100 buys twice as much food at wally world, than at the grocery store.

I really doubt it would cost $200 to buy $100 worth of WM priced food. Unless that grocery store is extremely pricey. We have local grocery stores that are very comparable to WM prices, and they are locally owned, so the money is going back into the area, instead of being funneled to billionaires.

[StereoInstaller1]

One thing most seem to forget is that China and India are soon going to demand an equal wage...and then labor/transportation will be cheaper here, or "trendier" or whatever, then the jobs will be back here.

Cyclical, indeed. Good times, bad times are all the same: this too shall pass.

[nando]

Free trade doesn't exist in the US either. Or only if it benefits the US. Look at the Canadian lumber wood dispute. That's no free trade. US is taxing imported wood at a very high rate. Even Mexico is tired of the one-way process. Which is why countries from Sout-America have created their own "zone" and will not adhere the Canada-US-Mexico agreement.

a lot of that is because of our bitch-whore-waffleswaffleswaffleswaffles WA state governor, who for some reason wants to stab our biggest trading partner in the back. of course with the canadian dollar being strong against ours they still come down here in droves to buy stuff from us, which helps our economy. And higher lumber prices don't help our ailing construction industry either.

also, not all imports are bad. Do any of you guys honestly want to work in a sock factory, high paying or not? I don't think so. There's a reason why US industry has been moving more towards services, and it's not just because we're "losing" jobs to overseas markets - it's because fat fucking slob americans like you and me don't want to do manual labor any more, at any price. So we buy them cheap from China and sell things like finance and engineering instead, which are a better use of our talents than standing in a factory line for 12 hours a day stamping boxes.

[z31maniac]

I really doubt it would cost $200 to buy $100 worth of WM priced food. Unless that grocery store is extremely pricey. We have local grocery stores that are very comparable to WM prices, and they are locally owned, so the money is going back into the area, instead of being funneled to billionaires.

There is a regional chain, Wal-Mart and a literally DISGUSTING locally owned placed that never has quality produce or meat.

And the two other places are substantially more than Wal-Mart.

I could spend more money on groceries at "The Food Pyramid," but then I have less money for entertainment, gas, maintenance/upgrades for the BMW and the R6. So then those areas of the economy get hit because I'm not spending as much there.

[Massive Lee]

It is true that the industrial countries from yesteryears have developped into more knowledge-based or high tech industries/business. Perhaps thinking that our citizens are too good to work in a factory. Problem is that there is a huge non-educated portion of the population (US or Canada) that sees less and less jobs for their skills. Not everyone is a computer network tech, or economy consultant. One other problem is the laziness of many big American industrials to not adapt. The American auto industry has been aiming to a concrete wall for 25 years and hasn't realized that foreign automakers are continuously improving their products. That means that many workers are loosing their job.

[Vedubin01]

It is true that the industrial countries from yesteryears have developped into more knowledge-based or high tech industries/business. Perhaps thinking that our citizens are too good to work in a factory. Problem is that there is a huge non-educated portion of the population (US or Canada) that sees less and less jobs for their skills. Not everyone is a computer network tech, or economy consultant. One other problem is the laziness of many big American industrials to not adapt. The American auto industry has been aiming to a concrete wall for 25 years and hasn't realized that foreign automakers are continuously improving their products. That means that many workers are loosing their job.

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