PeakTrader.com

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PeakTrader said...

U.S. manufacturing has gained tremendously, particularly after the quick and massive creative-destruction process, mostly from 2000-02, when more low-end manufacturing was offshored and more freed-up resources were shifted into high-end manufacturing (and emerging industries).

Also, U.S. terms-of-trade improved, i.e. export-led economies had to make up in volume what it lost in value, including in response to a weaker dollar, which makes U.S. goods more competitive, ceteris paribus.

The highly-skilled in export-led economies with appreciated currencies can raise their living standards by selling their assets, exchanging their currencies for dollars (to receive more dollars) and move to the U.S..

The U.S. has been a "black-hole" in the global economy, attracting imports and capital, and even pulling-in the owners of that capital themselves. Unfortunately, the U.S. government has been a black hole in the U.S. economy.

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It should be noted from 2002-07, the global economic boom, record U.S. trade deficits, high foreign demand for oil priced in dollars (which require exchanging goods for dollars), and peak oil were all interrelated and resulted in a steeper rise in U.S. living standards (including increasingly larger U.S. gains-in-trade, in part, from diminishing U.S. marginal utility from overconsumption).

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Americans' Access To Basic Needs Hits Recession Lows As Income Growth Slows
12/14/11

"Between December 2007 and June 2009, U.S. incomes fell 3.2 percent, while during the recovery between June 2009 and June 2011 incomes dropped 6.7 percent, a recent study from former Census Bureau officials found."

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PeakTrader said...

If Obama wants more money to squander, he needs to put Americans to work in oil fields, with lots of overtime.