Obama and His Accomplishments

I'm not saying they are the end all be all of economies. The structure of our economy and its handling of investment capital have made our economy great. Our entrepreneurial spirit, due to the nature of our forefathers and their tendency to be independent, combined with our fading tendency toward self determination have made this place the wealthiest in the world. I'm not trying to dismiss the consumer element to our economy, but ours was still the greatest, even before we became senseless consumers.

Investment capital is at the heart of employment and near full employment is at the heart of consumerism. Clearly the complete circle is necessary to make it all work, but the investment leads the charge.

OBTW, the wealthy aren't the only people investing. Consumers do so by saving, via banks as lenders or in 401Ks that buy shares in companies that utilize the capital to grant returns. Since we have become a net consumer nation rather than a net saving nation, you would expect to fall off some in terms of employment and capital expenditures.

The only way the machine is to some degree self perpetuating is for investment to remain strong. Heavy consumerism is nearsighted and can't continue. It helps our economic numbers in the near term, but isn't a lasting approach to maintaining our economic dominance. Investment is the key to our future. Anything we do that impedes it is silly.

 

That makes sense to me. I just wasn't understanding the argument completely, I guess. Appreciate the discussion.

 

Which is why we're in the mess that we're in now. People had access to capital that they shouldn't have had, and spent it unwisely, which created surplus inventory and put capital on the sidelines while the market corrects itself.

 

See housing market as exhibit A.

 

And the automobile market, which is showing signs of coming around.

 

Good thread, would get raped in again.

 

Microwave oven is a good example of something that was unheard of, now almost every home has one. Even if its only used to pop popcorn.

 

I'm a bachelor. The only thing I don't microwave is my morning bowl of Cinnamon Toast Crunch.

 

Heat it up on a cold frosty morning! May be good, who knows!

 

I understand that. But, the demand to cook food was already there. The microwave accomplishes that faster than before. Unexpected invention that met a known demand.

I understand what BPV was saying. I was taking it that demand/consumer was of little to no importance. I was mistaken about his points.

 

This sounds like it may be good

 

don't want to put words in BPV's mouth, but i assume he's refering to what fuels long term economic growth and there is no question that investment is that fuel, not demand.