Quick understanding of our economy and the variables.
Economy is really based on the demands of population size. Housing market depends on number of children born. As population aged; good foods sustain life better, and population does not decrease; which builds economy much easier. Provided that jobs are created for the elderly and children as well. We use just in time theory to build jobs, and allow time free to spend earnings.
Beyond the basic needs of food, clothing, entertainment, transportation and shelter; the personal demands are social events of holidays and gift giving events. We are now going into the thanksgiving and Xmas season. the economy is expected to run a 6-8% increase over last year. This however is going to borrow some economical progress in the next quarter.
So, from year to year, we look at the population, and manage the economy, season by season. Farming industry is 2% of our population; manufacturing is 15%, distribution of goods is 30%, and service industry is 50%. The rest(3%) is unemployable(defined as people not willing to take orders) of 3%.
On Wall street, only some manufacturing firms, distribution and service firms are large enough to be public companies. And each day may be a different story to shift investment around. It does not have the full story of the economical planning. Lately, Wall street begins to worry about credit woes; which is controlled by the Feds(Federal reserve bank). What Wall street needs to know is default credit woes are tabled until it is serviceable again. We do not forgive debts; but we can table the debt and fix it on a time allotment.
The main thing in economy planning is growth by population and creating demands to be satisfied. New products drive economy. Job growth depends on new product and service creation. We are working on a $16 trillion economy in 2009.. |
