Quote:
Originally posted by chavos
Moreover, the consumer is not the sole control of the US economy. Buying provides short term stimuli, but unless worker productivty increases, there can be no long term economic growth. what provides worker productivity? Education and investment. Education is hard to quantify in these situations-its a longer term effect, and while many people are choosing to study over work, there is still the question of if they will have marketable skills.
Government spending is sharply up to 8.5% of GDP, an highly unsustainable number, with current taxation. Private domestic investment is still weak, creating stress on the loanable funds market that may be felt soon with higher rates, especially if the Fed cannot sustain such low rates on the overnight prime rate.
It's a mixed bag, with several signs that it will not last.
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The consumer accounts for 2/3 of GDP. Considerably higher than business spending, government spending or anything else combined. If worker productivity was so heavily influenced by infrastructure investment then why is it that worker productivity is among the highest ever when business investment is in the crapper?
Jobs are out there for those with the right skills. If you can't get anything better than $7.50 I would suggest building a new skill set.
<edit> the $7.50 comment is to the post beneath yours.