A Durable Economy??
Easy money gravitates to easy yield, financial instruments, real estate, stock buy backs, mergers & acquisitions, an economy based on paper profits. The money is not gravitating where it should, investments in a durable economy, investments in the future, capital investment, manufacturing, wage increases, real jobs (not the burger flipping type).....We have arrested the economic process of capitalism.
If we look around we certainly see an incredible number of new homes, new condominiums, new strip malls, and new office buildings. This is why new hiring is concentrated in government and construction hiring. But we have to ask has this economic expansion actually created any new technologies or even new businesses?
It is new businesses that create most of the new process that advance an economy, not old businesses that grow more and more inefficient every day. Sure old businesses can say they are getting more productive, and in the short run they can actually seem to be. But I don’t call having one check out clerk instead of three, so that I have to stand in line for twenty minutes, productive.
And I think that is where we find ourselves: building more capacity on top of over capacity (the capacity utilization rate is for all the hoop-la still hovering at only 76%).
See: Build it and they will come, by John Succo @ Minyanville
http://www.minyanville.com/university/derivatives.htm?id=4225
If we look around we certainly see an incredible number of new homes, new condominiums, new strip malls, and new office buildings. This is why new hiring is concentrated in government and construction hiring. But we have to ask has this economic expansion actually created any new technologies or even new businesses?
It is new businesses that create most of the new process that advance an economy, not old businesses that grow more and more inefficient every day. Sure old businesses can say they are getting more productive, and in the short run they can actually seem to be. But I don’t call having one check out clerk instead of three, so that I have to stand in line for twenty minutes, productive.
And I think that is where we find ourselves: building more capacity on top of over capacity (the capacity utilization rate is for all the hoop-la still hovering at only 76%).
See: Build it and they will come, by John Succo @ Minyanville
http://www.minyanville.com/university/derivatives.htm?id=4225
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