Economics 102

So they are going to send me a rebate check. Money to spend. A gift from the Keynesians in DC. Great, there’ll be some money for the piggy bank. I’m not gonna spend it ! Am I stupid ? Read my last economics post! No amount of spending will fix the economy. It will only soften the landing and postpone the disaster. We have been doing that too much in recent years. What we need is a quick hard crash so we can get back to the business of growth. Not a $150 billion gimmie people will blow on crap made in China. If you need to shell out that kind of $$$ how about issueing vouchers that can be redeemed on for goods made in the USA ?! The problem is that people have no savings to bail them out of a mess when things go sour. Giving them money to blow is not really a good example of “smart” personal finance is it?

Here are some curious facts:

1) The United States had a trade decificit of $196 billion in 2006 at A GDP of $13 trillion.

2) Germany had a trade surplus of $209 billion that same year at a GDP of $2.6 trillion.hh.gif

I can’t think of many items sold in Germany that bear the label “Made in the USA”. One good example for German ‘goods’ sold in the US I noticed in the paper this morning (see picture on the left).


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