Wednesday, October 7, 2009
Love a sale--unless it's the whole country
The price of everything is falling, according to Rachel Beck. Of course, many people cannot afford even rock bottom and must dig down from there.
The average house in Detroit is $7500!
People whip out the coupons and pay $5.00 for a basket of groceries.
But what will happen when the makers of flatscreens need to raise the price to actual cost?
If that ever happens.
The problem with this is—If companies can’t make a profit, they can’t hire people. This sucks as we all know. One in 10 people wants to work and can’t. Maybe one in five.
Then, maybe, conceivably, this admin will think “industrial policy” and we will try to be a country that makes things again and has pride in our work, not just our ability to live on air or suck as much money out of the govt as possible—which means out of our own pockets and our kids’ future.
This would mean suspending payroll taxes for awhile, incentivizing hiring (and not some dinky $3,000 per employee), lowering capital gains and corporate taxes, and penalizing offshoring. When someone thinks it’s safe to make money again, they will hire people to do it for them.
That is how the world has always been.