Talk of The Villages Florida - View Single Post - Another Great Depression
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Old 12-29-2008, 10:53 AM
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just eat your imports!!!!

BTK
There's a lot more involved here than automobiles - and that's the rub. The auto industry is trying nto make themselves as the biggie, but I'm not sure they're right.

I strolled through Target yesterday and didn't find a manufactured anything that didn't have a ""Made in China" label. Target probably had Americn-made goods, but they just weren't evident. Have tried the same stroll through Walmart, with similar results. Vendor night in TV isn't much different, with the luggage, leather goods and other stuff having a "M-I-C" tag.

In a perfect economic world, money cycles through the community several times. Wages are used to buy local goods, which result in more wages, and so on and so on. The government gets its cut several times along the way, resulting in many "litte bites" instead of a couple big ones.

The US economic model is now wages buying Chinese goods, resulting in the money being taken out of the economy and sent across the Pacific. There is no cycling of the money, resulting in the "economic wheel" stopping. So, any "economic stimulus" which puts more money into consumers' pockets to spend does no good, if the spent funds are for Chinese (and other) goods resulting in the money not internally cycling.

While motor vehicle purchases are significant, the everyday purchase of foreign-made televisions, computers, vacuum cleaners, counter-top grills, picture frames, coffee cups, and other under-$1000 purchases is what's stalling the US economy.