Why does the economy suck?

[Outrider]

shortest answer possible? simply put: because banks are stupid!

Not quite:

Democrats.

So after writing a whole post about Democrats causing the housing crisis, corporations being greedy, and Republicans cutting taxes/going to war, you wrap it all up by saying that the economy sucks because of Democrats.... So are you saying the former are the facts, whereas the latter is your opinion (which doesn't even reflect the facts you listed)? You are entitled to your opinion, but wouldn't the more accurate short answer be what Son wrote, i.e. politicians? Also:

You can't fight a war and cut taxes, its impossible.

It's possible because that's exactly what happened, although the consequences weren't very nice.

[Dad]

Because bought and paid for politicians on BOTH SIDES pass regulations to further enrich themselves and their corporate masters, leaving as little as possible for the rest of us.

When someone or a corporation is extremely wealthy, where does the money come from? They don't just print it. They take from the poor and middle class in the form of lower wages, no benefits, no retirement, etc.

Also, I agree with the entitlements should go. My ancestors were born here (native american) as well as immigrated legally. Arrest and deport all illegals or make them legal so they pay taxes like the rest of us.

[(=DK=)Samonuh]

Lets not forget CORPORATE GREED!!!!

I never understood why people had a problem with corporate greed. Why else do you think people create businesses? For the good will of others? No. The primary motivation behind owning a business/corporation is to generate revenue. Of course they need to be greedy. If they didn't have money as their motivator, the business would surely fail.

[Outrider]

I think this article pretty much sums up why most people don't like corporate greed:

The job of a business is to make money. A business should make all the money it can using every tool at its disposal within a framework of ethics and morality. That's the profit motive. The profit motive is good when it operates within moralistic boundaries.

Take away those boundaries and the profit motive becomes greed. Greed is not good.

A business that eliminates workers in this country and sets up shop in another for the sole purpose of reducing labor cost is greed motivated. These are the companies that cut domestic payrolls and then distribute excessive salaries and bonuses at the top.

[(=DK=)Samonuh]

I think this article pretty much sums up why most people don't like corporate greed:

The job of a business is to make money. A business should make all the money it can using every tool at its disposal within a framework of ethics and morality. That's the profit motive. The profit motive is good when it operates within moralistic boundaries.

Take away those boundaries and the profit motive becomes greed. Greed is not good.

A business that eliminates workers in this country and sets up shop in another for the sole purpose of reducing labor cost is greed motivated. These are the companies that cut domestic payrolls and then distribute excessive salaries and bonuses at the top.

Yes, but when you are hiring your workers in third world countries, you're utilizing comparative advantage, which lowers costs and allows our economy to focus on specializations. Forcing companies to retain jobs in a country that requires them to pay the worker 10x more than in India/China etc. makes no sense when evaluating what produces an efficient economy. It would actually further our recession, since price increases would slow spending, raise unemployment, and disallow the United States to develop better jobs. Typical rule of thumb is that when you lose jobs in one industry, you gain them in another. I see a huge shift in jobs coming these subsequent decades. We will become more technology-based, and in no time people will scoff at the idea of the United States' economy being factory-driven.

[WD-40]

Because we keep electing and re-electing retards who care more about keeping their jobs, than just doing what's right for our Country. The recent money spent for the useless Wars under Bush and Obama's wasteful jobs expenditures hurt us bad. Poor banking regulation begun under Clinton, leading to housing failures from Fannie and Freddie, etc...the economy was starting to fail as he was leaving office. We still needlessly import oil instead of drilling in Alaska, and we outsource much-needed jobs to China and other countries because of corporate greed. Ohh...and Walmart sucks the life out of small town USA...more greed.

[Yanoda]

Knowing me, this is going to be a bit long as one cannot explain the entire situation in a short answer.

I'll try to summarize it with points:
- Mismanagement in high stakes loaning, both citizen and corporation.
- Major government deficits since the cut in taxes and considerable amount/length of wars, which had an effect that lowered the US credit rating.
- Outsourcing of Jobs to other countries (China and India mostly). This is due to the consumers wish to pay less for products and that was not a possibility with US made products. Based on experience with average consumer views: Cheap Prices > Quality and 'made in USA'. This is also partly due to Corporations/Businesses since they wish to have more profits without regarding the long term effects.
- Short term planning in both Citizen, Corporation and Government. (Example: Florida Government providing contracts for high-rise development in tourist areas, which reduces the view-ability of the area for tourists. Tourists in turn, come less often to the area, this reduces the business with tourist focused businesses. High-rises are mostly only occupied by 'Snowbirds' who only come for 2 months a year on average or are vacant for long periods of time. Businesses cannot cope with the lack of visitors then, forcing them to close. This had a domino effect for an entire area.)
- Corporate greed in terms of Outsourcing Jobs, Tax Evasion, Lack of further development (example: Florida L & P barely invests in improving electric infrastructure, yet has net earning of several hundred millions of dollars and raises electric prices for consumers).
- High University and College costs where many Graduates have large amounts of debts that they need to pay off. They may earn decently but, they loose on that by paying off the Loans.
- Low developed/durable infrastructure. Like wooden/trailer homes in areas will many Tornadoes or strong storms (Florida). Easily destroyed infrastructure create more debris for clean up crews, cost of lives, disruption in electricity and water etc...
- Price Dumping of Chinese based products that cause other businesses to close down, then maintaining a monopoly in said Market. This is starting to become quite serious, Internationally as well.

Future (5-20 years) issues that will arise:
- Water problems/scarcity due to mismanagement, over consumption and excessive wastefulness. Florida is already experiencing fresh water problems in several counties. This will have several other effects for many (citizens, business and Government).
- Lack of development in alternative energies will continue dependency in non-renewable energy sources that will continue increasing in prices and cost. In turn costing more for citizens and businesses. Without current subsidies for Oil, Coal and Gas, the prices will double or even triple. This makes Renewable energy development very competitive, but subsidies for oil, coal and gas prevent that from happening. Drilling in Alaska will not solve the issue, just post-pone it for 2-5 years with Oil, Coal and Gas companies making more money at the cost of tax-payer money.
- Low Education standards/funding will reduce the competitiveness of US to other Countries. This can have a negative effect on economy, job availability and future development.

There are many more points that affected the economic situation that I haven't mentioned. The main point is that not one entity is the sole cause of the situation.

Cheers

[haasd0gg]

Time for some Reaganomics. Ronnie in 12

[Outrider]

Yes, but when you are hiring your workers in third world countries, you're utilizing comparative advantage, which lowers costs and allows our economy to focus on specializations. Forcing companies to retain jobs in a country that requires them to pay the worker 10x more than in India/China etc. makes no sense when evaluating what produces an efficient economy. It would actually further our recession, since price increases would slow spending, raise unemployment, and disallow the United States to develop better jobs. Typical rule of thumb is that when you lose jobs in one industry, you gain them in another. I see a huge shift in jobs coming these subsequent decades. We will become more technology-based, and in no time people will scoff at the idea of the United States' economy being factory-driven.

That makes sense. So the problem now is that there aren't enough people with the necessary skills to take on these new and specialized job openings.

@Yanoda: Very excellent and insightful list. :)

[Son]

Yanny...MD was asking for a short answer.

I have to change my 1 word answer for a 3 word answer...

Politicians and Walmart...

Thanks to WD for reminding me on that.