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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: robert b furman who wrote (2526)1/5/2015 11:32:00 AM
From: Kirk ©  Respond to of 27120
 
Excellent! For awhile I thought I was the only one who would point this out.
The U.S prospered in the 1950's because we were the only industrial country that had not had their lands destroyed by WW II.
Also, we build huge manufacturing plants and trained workers, including women, to build war machines. Soldiers returned to man these factories that were ALREADY PAID FOR.

And most importantly, the "spoils of war" for the US was the "middle class" had sufficient prosperity that for probably the only time in the history of the planet, one worker could make enough money to support a leisurely life for the other worker in the "family unit" plus most of the kids could go to school without having to work jobs to help make ends meet.

In most parts of the World, both parents worked the family business or farm plus the kids pitched in to help be it milking cows in the AM before school on the family farm or sweeping floors before and after school at the family store/shop/etc.

I know of some who found they can live on much less, like one salary, if they don't demand $200 sneakers for their kids, $4 to $5 daily sweet coffee habits, unlimited data plans on iPhones, etc....
GM was a bloated and over rated success story, that was about to enter a multi decade decline as the new plants reconstructed in the war zones built a better product - which was mostly ignored by the arrogance of upper managements with in the US OEM manufactures.
I remember in the 1980s we had to take all sorts of Quality Control classes to learn how the Japanese turned from making junk in the 50s and 60s into World Class Products that nobody could touch. HP was not arrogant like GM, IBM, Kodak, etc... so we did that and became BETTER than the Japanese by recognizing we had issues even if we had leading products.

It is interesting now that Japan kept its borders closed and they've been in a recession or deflationary depression for decades after we figured out how to compete with quality. Will we follow them into deflationary depression? Many think so as the prices for gold and erhl seem to indicate most believe today... or did we learn?



To: robert b furman who wrote (2526)1/5/2015 1:52:01 PM
From: Jerome  Respond to of 27120
 
Hey Bob, I think you are missing a part of economic history........

Pent up demand by the 3 million GI's released from service was one small part the economic recovery. All those GI's wanted cars that were not produced during the war.
The U.S prospered in the 1950's because we were the only industrial country that had not had their lands destroyed by WW II.
Our economy did good by the time Eisenhower was President, but the real economic upswing was taking place in Japan, Germany, England and France.

All those factories that were destroyed by our bombs were rebuild to be more advanced than the American Factories at that time. Plus rebuilding any bombed out city is manual labor intensive and that also adds to the economic recovery. American dollars paid for a lot of that with the Marshall Plan. At that point in time there were numerous magazine articles about the miracle recovery in Europe and the Far East.

Destruction of property lends itself to the rebuilding process, and the end result is a newer and better result.
Unemployment was 2.9% when Eisenhower took office and 6.6% by the time he left office.This probably helped Kennedy get elected.

portalseven.com

If you go back in the economic history of that period.....American unemployment rose (Too many ex GI's in need of a job) while Europe had a labor shortage.