The breaking point

Discussion in 'Economy' started by william the wie, Dec 16, 2010.

  1. william the wie
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    william the wie Gold Member

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    The go for broke strategy that Loose Cannon advocates is failing as treasury bonds drop by double digits in less than a month.
    IL and to a lesser degree CA are teetering on the edge of collapse.
    Cable is losing net viewers and given the leverage in the industry widespread bankruptcy is a real possibility.
    Book stores are in trouble due to the price war in ereaders and publishers are shipping fewer hardcopy titles.

    So at what point does the denial break down?
     
  2. Paulie
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    Paulie Platinum Member

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    The industries you mention are not necessary for prosperity.

    Where any of them fail, another can and will spring up to replace the void.

    This is just my capitalistic opinion.
     
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  3. Ravi
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    Ravi Diamond Member

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    Yep...remember Blockbuster? Eaten by better and easier companies.
     
  4. william the wie
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    william the wie Gold Member

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    Absolutely true higher productivity/lower employment industries are taking over the economy. However with unemployment being the major concern I don't see that as a solution. What I don't see is what jobs will replace those that are being lost and how quickly.
     
  5. Paulie
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    Paulie Platinum Member

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    As a co-owner of a business myself, and another one I'm hoping to get off the ground here real soon, I would say that ultimately, it's more advantageous to produce as much as possible with as little labor as possible.

    I don't WANT to hire someone unless I HAVE to. One of these businesses I mention is a pre-school, so regulations FORCE me to hire someone as the client load builds, to meet child/adult ratios.

    But overall, businesses aren't going out of their way to find reasons to hire people. It's not necessarily wrong per se, but it doesn't help the unemployment situation either.

    The conundrum is the balance between industrial progress and labor demand. Considering that a business is always going to look for ways to reduce expense while increasing revenue, jobs will be on the chopping block forever.

    It would have just been nice if this all wasn't happening in the wake of such a huge financial disaster around the world. We probably accelerated the decline in prosperity by about a decade or two with this whole mess.
     
  6. loosecannon
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    loosecannon Senior Member

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    It won't fail as long as the fed is prepared to monetize the entire debt, and I believe that is the plan and the reason why there was such an uproar within and without the fed board only after the second announcement of QEII broke. Since then policy makers lost their minds trying to run the deficit up as fast as possible in unusual bipartisan fashion.
     
  7. william the wie
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    william the wie Gold Member

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    I agree and the really big industries that are going to start shrinking by the end of the decade include:

    The education industry as simulators start displacing labs and videos replacing lectures at higher levels but more slowly at lower grade levels.

    The medical industry as bio-tech and nano-technology replace current procedures.

    Police and security technology such as CCTV, better identification of weapons and perps through lab work and better analysis of problem areas will lead to very different police work.
     

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