What is going to happen?

Discussion in 'Economy' started by Cain, Feb 24, 2011.

  1. Cain
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    Cain Air Force DEP

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    So, I consider myself one of the least educated when it comes to Economics. I have read a few books on Economics, but frankly, I'd rather read a military history book or even fantasy.

    From what I read, I remember this from a book (no idea what it was sadly):

    -Economies function in cycles, they're always going up or going down, even if slowly

    That is about it, I am not good with Economics, and I am here to ask this:

    What exactly is going to happen to the American Economy? I know none of you can be 100% sure cause you can't predict the future, but I mean, I have so many people saying We are out of a depression, then some say we are in the middle of it, then some say we are just beginning one...what is it really?
     
  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    I'd say were in a Depression. If that wasn't bad enough, inflation is coming due to massive dollar printing at the Privately Owned Federal Reserve.
     
  3. JamesInFlorida
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    JamesInFlorida Senior Member

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    Not sure how familiar you are with economics, so I apologize if I come off as preachy (I tend to ramble LOL)).

    But there's a difference between a depression and a recession, and I think you're referring to the recession being over (for now), and not the depression. A recession is basically when the economy (mostly measured in terms of real GDP) decreases for 2 (or more) consecutive quarters. Recessions come and go, and can theoretically even occur in times of economic prosperity as part of a normal curve going up and down. A depression is a little less of a concrete definition, but essentially is a period of severe economic downturn, comes with abnormally high levels of unemployment, drop in credit, low interest rates, etc.

    Our GDP has (slightly) gone up according to the BEA (bureau of economic analysis), so this is what you're probably hearing-as this would technically mean that there's no current recession.

    I'm not really sure how/when we're going to get out of our funk, but I do think our biggest problem as a country is a lot of the jobs we're losing aren't coming back. Jobs being shipped over seas aren't coming back, jobs being replaced by new technologies, manufacturing jobs (at least a good amount of them), small mom and pop shops going under.

    I do think we're in a depression, and haven't been in one this severe since The Great Depression (I don't think we're near that level though). I think it's going to take something big to give our economy a boom-but what specifically that could/will be...I'm not sure.

    and yes I agree economic books can be very boring, I've read way too many of them in business school haha.

    edit: and don't worry-most people think that a depression is a recession (just worst), and have other misconceptions about economics. You seem like a bright guy based on posts in other threads-economics isn't as difficult to get a grasp on as it initially seems. Knowledge is power-and kudos to you in trying to expand yours.
     
    Last edited: Feb 24, 2011
  4. william the wie
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    william the wie Gold Member

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    Get "Generations" by Strauss and Howe. This is just a normal part of the human breeding cycle and should produce a baby boom in around 2025-45. The baby boom will be the result of women seeing hubby doing much better than daddy did in the downturn.
     
  5. Cain
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    Cain Air Force DEP

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    Hmm, well, I want to retire out of the Air Force as a farmer, and farming is not worth it, unless you get government subsidies and have thousands of acres. My cousins own a 6-7 thousand acre farm, and make a lot of money, but it's only cause the government helps them with subsidies I think (not 100% sure, but honestly, if anyone had them, I'd guess them) and they work really hard to earn extra money.

    Also, the economy has affected my want for a vehicle, I know this isn't a MAJOR thing in life, but for me, what I drive means a lot because I need room and the ability to use it long-distance. I've always wanted a dodge ram 1500 4-door, now I am looking at a Jeep Patriot, good space, better gas mileage.
     
  6. percysunshine
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    percysunshine Gold Member

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    The governments credit card is maxed out.

    Do the math.
     
  7. Cain
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    Cain Air Force DEP

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    Explain please?

    What math? Their is no math, I understand you said that as a after-affect? Well, my thing is, I understand we are in debt, but how can we fix it? I have no idea myself.
     
  8. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Neither does your future employer, the Federal Government.
     
  9. Cain
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    Cain Air Force DEP

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    Then who do we go to? I hate to ask this, I figure it's stupid, but I have to ask just to see the answer:

    If we have so many Economists, shouldn't they somehow be able to come up with a plan to help the economy?
     
  10. percysunshine
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    percysunshine Gold Member

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    How would you fix a maxed out credit card? There are only a few options. Default, rob a bank, or go into the profession of counterfitting and print your own dollars. Those are the easy ways out. You could go on an austerity program and put up with the bitching...but that is less appealing ...
     

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