Tuesday, June 09, 2009

We can't afford no more stuff

Unlike Japan’s slump of the ’90s and ’00s, this depression is worldwide. Americans aren’t buying like they used to. So, foreigners aren’t selling. Everyone gets poorer as expected income and profits disappear…and turn into losses.

Meanwhile, in America, today’s jobs report shows that unemployment is still on the rise. People without jobs can’t buy stuff – neither the kind of stuff you get at the grocery store…nor the kind of stuff you get from real estate agents. Since they don’t buy stuff, manufacturers don’t make stuff. And since they don’t make stuff, they don’t need the stuff that stuff is made of, nor the employees who turn the raw stuff into the finished stuff.

Result: the stuffing gets knocked out of the economy.