Quote:
Originally Posted by Baraka_Guru
What were the markets for rail, automobiles, and oceanliners like?
|
Pretty strong for rail and oceanliners at the time. Is my point lost, or are you challenging me to find something where there would be no response?
Quote:
|
My point is, people won't invest in existing markets if they are contracting or if they are up one day and down the next.
|
I am going to disagree again. For example, equine industry is subject to short-term cycles and has been in a long-term decline for decades - but there has been continued investment and innovation in good times and bad. Churchill Downs where they run the Kentucky Derby recently had a multi-million dollar renovation even-though horse racing interest is nearing historic lows.
Quote:
|
Without the spending to support these markets, they are a huge risk, and investors don't like that kind of risk, so they sit on their money.
|
There is a difference between a manager and a entrepreneur. Managers are bound by what you describe, entrepreneurs are not. Take a guy like Ted Turner, founder of CNN. He invests everything in a 24 hour cable news channel taking a huge risk when there was no known interest in people wanting CNN. Innovation comes before demand for certain products. Often entrepreneurs create new markets, create new demand. The cycle of innovation is what fuels economic growth, and increase standards of living for all. Again, fundamental supply side stuff, it is everywhere. Ted Turner became a multi-billionaire but so did others, many many more became millionaires, and today the 24 news cycle industry is at its peak - millions benefit - and so does the government.
Quote:
|
No one said to stop the pump, but no one's going to build aqueducts if not enough people are drinking the water.
|
Correct, consumer demand and spending in 2010 is at very high levels in absolute terms. What we are really talking about is the rate of growth, and that is often how they define the health of an economy. I bet very few people in 1950 imagined the size of the world economy in 2010, and the thought that because there may have been stagnant or negative growth from 2008 to 2010 is trivial given the size of the world economy. But some, like Obama, need the fantasy of thinking they saved the world.
and others, Roach, need the fantasy, that some neo-conservative plot has ruined life on this planet and that sooner or later (perhaps in the next 50,000,000) he will be proved correct.
Then there is me, have government get out of the way and we will be o.k.
---------- Post added at 08:34 PM ---------- Previous post was at 08:30 PM ----------
Quote:
Originally Posted by roachboy
why yes. yes it is. thanks for stopping by.
|
Are you really a moderator here?