Yes, Jim, if the real estate bubble is broken, then that will take a couple of generations to absorb. no doubt about it. The current 20-something generation will be screwed<g>
As for the majority politicians, here is a multiple choice:
1) they are clueless;
2) they are idiotic;
3) they know what is going on, just being self-serving, and self-preserving, and they don't know what else they can do except keep their faith in AG;
4) All of the above<g>
>>responsibility lies with our academic economic teachers<<
A good point. How could I forget this?<g> I think until today, AG is still a hero for most of academic economists.
>>what is capex?
capital expenditures, techically
it is coming to mean capital equipment in a physical sense<<
Thanks. Yeah, those politicians keep talking about tax cut will result in capital investment. I am not sure how many are willing to invest when 27% of current factory capacity is sitting there and rotten.<g>
Personally, I think overcapacity is inherited in the market economy, I might be wrong on this<g>. And I agree this "free trade" does not work exactly well for developed countries, but what else can developed countries do? Their own market has long been saturated, especially the US market. People can only buy as much staff as their houses can hold<g>. there is a finite space<G>, but the high productivity of the market economy is infinite. And they are bound to explore the market in developing countries. But how people in developing countries can afford to buy their expensive product? They would have to ask those "capitalists" to set up local shops and employ local labor force, and then access to the local market. Trade protection or not, it is a cold hard fact. Developing countries can never open their market like developed countries do, and that is why they are called "developing". Those supporters of laissez faire global trade keep ignoring this fact. |
