Great Depression of 2016

[rufus]

So what is it ? Do you think everyone should evacuate the Imperial County ? Did you know that a asteroid could hit the planet tomorrow and kill us all ?

No, just be aware of the issue. The asteroid would kill all of us, so there would be no problem. A flood of southern California would only affect that area, but we all would have to pay to clean it up in the best manner. Weigh the risks before you buy real estate.

 

[hemet dennis]

Quote:
Here is something much better to worry about.

So what does everyone think of that ?

 

[rebelcowboysnb]

Here is something much better to worry about.

So what does everyone think of that ?

I dont see anything to worry about there. The whole video fails to account for two big factors.
1 Jobless people buy no products no mater who made it.
2 The more free time a human has, the more money they spend trying to fill it with entertainment.

Those two factors will keep somewhat of an equilibrium in the job market. How many people make a living on the in internet today? I know more than I can count that make a good living just on youtube. The reason being is that the market is growing cause of so many people trying to fill their free time. Thats why thats why this forum is here. We are all killing time that we now have that we did not 20 years ago...

 

[hemet dennis]

Quote:
So all the unemployed people in the U.S. don't buy anything ?

As it points out we already have cars and trucks that can drive themselves. How long before driving jobs go the way of the blacksmith ?

What jobs will those people move to ?

 

[rebelcowboysnb]

So all the unemployed people in the U.S. don't buy anything ?

As it points out we already have cars and trucks that can drive themselves. How long before driving jobs go the way of the blacksmith ?

What jobs will those people move to ?

No, not with there own money... Unless they have savings or something an that eventually runs out.

We dont need to know what jobs truck drivers will move to to know that the market will open up one for them somewhere. All we need to know is that you need a consumer with a disposable income willing to buy a product before it is worth building anything at any price.

People tend to think of the industrial economy starting at the production line an ending at the consumer but in reality it is the other way around. It starts with the consumer making money. Until he has a job, any job then he cant buy any product. It does not matter what the product costs or what it costs to produce. No money = No product.

Lets look at it from a simplified economy. If every product in the world was made by the same company an that was the only company to work for. Sure that company could cut jobs to save money but only to a point. At some point the company would have cut so many jobs that they start losing more money from lack of sales than they are saving from job cuts. You reach an equilibrium...

Now in the real world its more complicated. Jobs can come from anywhere. That is why companies get away with cutting jobs like they do. They count on someone else to create replacement jobs. Without those replacement jobs the company eventually has to take a drop in sales. What those jobs are does not really matter, all that matters is that those jobs have to come for the companies that are cutting these jobs to continue to have customers an turn a profit. Those jobs will come from somewhere. An even if they dont you eventually hit that point that the cutting of jobs hurts the companies threw loss of customers as much or more than it helps them by saving money.

Now there is no question that lots of people will lose jobs an have to find other ways to make a living but the idea that humans everywhere will be replaced for all jobs is just not going to happen. Jobs will always be being created at somewhere around the same rate they are being cut. Its just the nature of supply an demand...

 

[oldrooster]

Quote:
Looks like somebody paid attention in high school economics, if you have no demand then all the supply is worthless, if you have a limited supply and high demand then it increases in value. 20-30 year old high mileage cars are in great supply so little cost but new Bentlee's are expensive since there are so few made....

 

[hemet dennis]

Quote:

Looks like somebody paid attention in high school economics, if you have no demand then all the supply is worthless, if you have a limited supply and high demand then it increases in value. 20-30 year old high mileage cars are in great supply so little cost but new Bentlee's are expensive since there are so few made....

Something else they teach in economics, is that if the other company is making and selling the same product as your, they will prosper and your will not. And it doesn't matter how many workers you hire, soon they will be unemployed and your company will close.

 

[hemet dennis]

Quote:
You keep saying that jobs will come from somewhere. But recent history doesn't backup that claim. Technology has eliminated way more jobs then have been created by it.

 

[rebelcowboysnb]

You keep saying that jobs will come from somewhere. But recent history doesn't backup that claim. Technology has eliminated way more jobs then have been created by it.

The numbers do not agree.

US population in 1980 was 226,545,805 with an unemployment rate of 7.1

US population in 2010 was 308,745,538 with an unemployment rate of 9.6

I don't know the current population but the unemployment rate is back to 7.4

If my math is right that means we have had a net gain of 13,554,820 jobs from 1980 to 2010 even though the US tax policy has been pushing jobs over seas like crazy for over 20 years.

I dont know any healthy adult that does not have a job that wants one. Where they were making carpet 20 years ago they are packing boxes for amazon today. Things have changed. They may not have the job they want an probably dont have the job they trained for in college, they still have a job. An remember those jobs for the most part did not go away, they just moved over seas. Globally we have more jobs than we ever had.

 

[rebelcowboysnb]

Something else they teach in economics, is that if the other company is making and selling the same product as your, they will prosper and your will not. And it doesn't matter how many workers you hire, soon they will be unemployed and your company will close.

Only if you are creating more supply than there is demand.



Look at Lodge. Its the biggest employer in its community. It is respected for that. Currently it cant compete on price with all the new tech in cookware so they dont. They pay people to make old fashion cast iron that stores want to carry an people are happy to pay 6 times the price for over the latest computer built non stick technical marvel.


KC lights is the same. People happily pay several times the price for a hand made product over the competitors computer made copies. Is KC a better product? I dont know but I bet its not 5 times better. But people respect someone with a set of smiley faces over his cab cause they know he built it right.