What to do with a sluggish economy.

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Originally Posted By: oilpsi2high
Also, many people I graduated college with are spending more than half of their gross income on vehicles, and are taking out 30 year mortgages on overpriced homes. This can't be good for the economy in the long run.


Actually, it is very good for the economy.

The people who sell those cars gets a paycheck.
The people who own the dealership gets a paycheck.
The people who transport those cars gets a paycheck.
The people who build the cars gets a paycheck.
The people who design the cars gets a paycheck.
The people who run the car company gets a paycheck.
They people who buy shares in the car company gets a dividend check, or a profit if they sell their shares of stock.
Most importantly, the car buyer gets a nice new car that they wanted.

On the house side of things:

The homeowner who sells the house for a profit gets a paycheck.
The real estate agents involved in the transaction gets a commission check.
The owner of the real estate companies involved get a share of those commission checks.
The city, county and state all get higher tax payments from the new owners.
The local board of education gets slightly higher contributions due to those same higher taxes.
The agent who sells the new mortgage gets a paycheck.
And most importantly, the new homeowner gets a nice home in a place they (hopefully) want to live in for a very long time.

I can't see why you're so short sighted to see all of these people who rely on people like us to buy cars and houses.
All of these people take these paychecks that they earned through hard work, and then they go out and buy cars and houses themselves.
Or, better yet, they buy the products that these two people above create.

BC.
 
Originally Posted By: Mr Nice
oilpsi2high,

Lots of new college grads refuse to accept the fact they are middle class and over leveraged themselves financially. Jokes on them cause they are NOT impressing anyone with their house of fanancial cards. Trust me... Lots of cash poor Americans living the American Dream and they are 2 paychecks from financial disaster if the lost their job, house needs new roof, etc... then they realize they allowed their ego to get in the way of good financial decision making.

Check out:
Your Military Money
on YouTube, the guy is an Air Force Major and gives good advice to younger folks... also older folks can take some pointers from him.




Many of the people I mentioned in my other post still rely on their parents financially. 30 years old but still live at home, yet drive a brand new car that they replace every 2 years and of course wear the fanciest of clothing. Going out every weekend and spending hundreds on food and drinks is the norm. It's ridiculous. If something happened where that money stream was cut off they would go bankrupt in a month.
 
Originally Posted By: Bladecutter
Originally Posted By: oilpsi2high
Also, many people I graduated college with are spending more than half of their gross income on vehicles, and are taking out 30 year mortgages on overpriced homes. This can't be good for the economy in the long run.


Actually, it is very good for the economy.

The people who sell those cars gets a paycheck.
The people who own the dealership gets a paycheck.
The people who transport those cars gets a paycheck.
The people who build the cars gets a paycheck.
The people who design the cars gets a paycheck.
The people who run the car company gets a paycheck.
They people who buy shares in the car company gets a dividend check, or a profit if they sell their shares of stock.
Most importantly, the car buyer gets a nice new car that they wanted.

On the house side of things:

The homeowner who sells the house for a profit gets a paycheck.
The real estate agents involved in the transaction gets a commission check.
The owner of the real estate companies involved get a share of those commission checks.
The city, county and state all get higher tax payments from the new owners.
The local board of education gets slightly higher contributions due to those same higher taxes.
The agent who sells the new mortgage gets a paycheck.
And most importantly, the new homeowner gets a nice home in a place they (hopefully) want to live in for a very long time.

I can't see why you're so short sighted to see all of these people who rely on people like us to buy cars and houses.
All of these people take these paychecks that they earned through hard work, and then they go out and buy cars and houses themselves.
Or, better yet, they buy the products that these two people above create.

BC.


They're using money that they don't have to buy things that are going down in value, which is detrimental to the economy. Housing also barely keeps pace with inflation. Speaking of which, the government is going to keep increasing our money supply, so expect prices to keep rising. Prepare for the worst, hope for the best.
 
Originally Posted By: Bladecutter

The people who build the cars gets a paycheck.
The people who design the cars gets a paycheck.
The people who run the car company gets a paycheck.


Yeah, but when most of those people aren't in the US, it's just more money leaving the country.
 
Fix the infrastructure while interest rates are cheap.

Or, we could defer the expense a few more years, do without all that time and pay more, after the economy has fully recovered.
 
Last edited:
All this, and nobody has mentioned how companies on wall street are going to be able to keep hitting profit targets without "cutting loose ends"...because sales overall are simply not up...


All the smart advice in the world is going to prepare you for what is coming....
 
Originally Posted By: oilpsi2high
I listen to Dave Ramsey every day, not for the financial advice, but for the comedy that his callers bring to the show.


very sad for a comedy show, eh?
 
Originally Posted By: CourierDriver
Get a job or training in HVAC, electrician, RN,CPA, plumbing and so on if your ego will let you....trade skills are good jobs, pushing paper at Dollar General, or working in mills, not so good anymore,,IMHO>


Give it a few more years...the illegal aliens will ruin those, too.
 
Originally Posted By: donnyj08
Originally Posted By: madRiver
Pickup and move from your depressed area? In my neck of woods economy is quite vibrant.



This. People have to realize that the U.S economy as a whole is relatively strong. Given our lackluster leadership its impressive. There are parts of the country that are struggling like Appalachia in west virginia and south eastern kentucky etc.. The reality is these places have always struggled and had the highest rate of Gov't assisted living and early death rates due to culture and lifestyle.

...(snip) ...

The trades need skilled workers. I.E Electricians, carpenters, HVAC techs, Plumbers, mechanics,...etc. Guys in these fields are making $22-30 and hour within a year plus benefits and only spending 12-18 months in school and 2 years as an apprentice for plumbers to get licensed. If students know what they want to do then i applaud college, but not every kid needs to go like the system teaches. We do not need anymore education majors or communications majors or English majors right now. They are great majors, and great people are getting those majors, but there aren't enough jobs!

I know several plumbers, and HVAC guys making well into the triple digits, living comfortable, and begging for good techs to work for them. My uncle runs a small automotive repair/body shop with 3 employees and he personally brings home a $150k a year. He pays his techs pretty well also.

America needs Tradesman. Learn a Trade!


You have identified a key component of the economy that cannot be exported. There are others ... Real Estate *, for example (you can't move an acre of land to China). There will always be a need for sales persons, even if they are selling imported goods, there is still a job in that field. And so on.

Although this is not specifically a US statistic, I just so happened to come across it when reading some news briefs this morning, and the economy it refers to is not dis-similar to the US one. They operate basically the same way, in the same common market (North America).

Canada:
June 2016, year to date (July 2015~june 30 2016)
Jobs Report
Added: 170,600 Service Sector Jobs
Declined: 46,200 Manufacturing Sector Jobs
(Canadian statistics typically equate to roughly 1/10th US numbers in equivalent categories)

* With regard to Real Estate, the offshore corporations that sell manufactured goods to the North American market get paid in (for example) US dollars. Although many commodities trade in $US, the reality is you can't spend them in (again, for example) the People's Republic of China (PRC) to buy inputs for your manufacturing plant or pay wages and taxes. You have to use local currency, sooner or later. So, the earnings from exports to the US can only reasonably be used within the US. The result (it was the same with Japan in the 1980's and has always been the case with the UK) is that the PRC Chinese buy American Real Estate with the US dollars they accumulate. It's one example of how revenue that leaves the US via purchases of imported manufactured goods returns to the US economy and does provide American jobs, but in the Service Sector instead of the Manufacturing Sector.
 
Originally Posted By: jimbrewer
Fix the infrastructure while interest rates are cheap.

Or, we could defer the expense a few more years, do without all that time and pay more, after the economy has fully recovered.


This would be a great idea if not for the rampant corruption with regards to federal contracts. Figure 30-40% lost in graft...
 
Originally Posted By: SteveSRT8
Originally Posted By: jimbrewer
Fix the infrastructure while interest rates are cheap.

Or, we could defer the expense a few more years, do without all that time and pay more, after the economy has fully recovered.


This would be a great idea if not for the rampant corruption with regards to federal contracts. Figure 30-40% lost in graft...


$8000 pizza bill amirite

Must consider Black Ops, the real NASA not the cookie-cutter front end missions we see on TV, etc.
 
Originally Posted By: zzyzzx
Originally Posted By: Bladecutter

The people who build the cars gets a paycheck.
The people who design the cars gets a paycheck.
The people who run the car company gets a paycheck.


Yeah, but when most of those people aren't in the US, it's just more money leaving the country.


I hate to break it to you, but people in other countries deserve to earn paychecks, too.
People in other countries also buy products and services made right here in the USA, along with their own country, and plenty of other countries.

BC.
 
Originally Posted By: oilpsi2high

They're using money that they don't have to buy things that are going down in value, which is detrimental to the economy. Housing also barely keeps pace with inflation. Speaking of which, the government is going to keep increasing our money supply, so expect prices to keep rising. Prepare for the worst, hope for the best.


Prices of what? Oil? My wages went up while my fuel bill went down. Go, 'Murica!
34.gif


Buying stuff that goes down in value is "consuming". A steak goes down in value 100% after you eat it. We have a consumer-driven economy, and one that's humming along nicely at that. The only other alternative to buying stuff that loses value is to invest in stocks, real estate, or tulip bulbs, and that's the stuff that gets manipulated for ill-gotten gains, comes crashing down, and bailed-out.
 
Would you guys stop arguing and (A) buy more corn flakes (B) burn more ethanol blended gasoline (C) drink more soda laden with corn syrup. I just sold corn for $4.00 a bushel and can't afford new green & yellow paint or a new $60,000 bro-dozer truck to roll coal with.

Get over it folks; what will happen, will happen. Left or right, blue or red, black or white, none of us on here have an influence on the economy, country or politics. Eat, be merry, kiss the wife/kids, pay taxes, drink beer and live your life.
 
Originally Posted By: Jarlaxle
Originally Posted By: CourierDriver
Get a job or training in HVAC, electrician, RN,CPA, plumbing and so on if your ego will let you....trade skills are good jobs, pushing paper at Dollar General, or working in mills, not so good anymore,,IMHO>


Give it a few more years...the illegal aliens will ruin those, too.


They already have in lots of places.
 
Originally Posted By: Bladecutter

People in other countries also buy products and services made right here in the USA,


Our trade deficit suggests that it's mostly a one way street. This can not be allowed to continue.
 
I think the biggest problem that we face as a nation is our crippling national debt, which mathematically cannot be paid, coupled with the massive student loan bubble, which no one knows when it'll burst. Lastly, our social inequality; there's no more middle class, only poor and rich.
 
Originally Posted By: zzyzzx
Originally Posted By: Bladecutter

People in other countries also buy products and services made right here in the USA,


Our trade deficit suggests that it's mostly a one way street. This can not be allowed to continue.


Then get out there, and create some manufacturing jobs.
Then, you need to decide if you are going to pay your workers a living wage, or pay a lot of workers minimum wage.
Finally, let's see how long you stay in business until your company's shareholders demand that you move production to a cheaper location, so that they can make more money off of you.

The only other solution is to eliminate 50% of Americans.

BC.
 
Originally Posted By: SkyActivG
Lastly, our social inequality; there's no more middle class, only poor and rich.


I hate to ask you, but who benefits the most from there only being two classes of people in the country?
Who might have wanted the wage gap to have progressed the way that is has over the past 35 years?

BC.
 
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