M-dala...I feel that there is nothing that our leaders in Washington D.C. can do to restore jobs that are gone forever...unless the current laws are changed that favor outsourcing U.S jobs to other countrys...! At this time a major corporation in my area is moving a local plant to Mexico with the loss of 1200 jobs....Plus, they are taking 51 million dollars in tax write offs to do it..!
My first job was as a Systems Engineer for a mainframe computer maker. I had a client site who manufactured components for mobile homes. When I saw Japanese salesmen in the purchasing managers offic several times, I asked one of the managers why the Japanese were selling. He said it was glass for the windows. I was surprised because glass windows are heavy and thus expensive to ship. The manager said that their labor cost was so low they could afford to pay the cost of the shipping. This was in 1968. So you see, the US has been shipping jobs overseas for decades by buying from the low cost bidders. The big box stores contribute to this and the public benefits from the lower cost of living, don't they? Unfortunately, the unemployed are the ones who pay.
Very true. I'm in the Fed economic game and as the original post stated...not even half of those funds are out there. The rural broadband program will start releasing its funds early next year...maybe not a whole lot of jobs, but ultimately a good thing for all.
It is one of the sad facts that when the best we can claim is that we are a "consumer nation" and we are pressed to identify the niche we have in production or manufacturing. The US economy has been based on financials and that is where the root of the problem has been as that sector has stagnated.
I'm of the opinion that this admin has a grasp on the situation and as they have said...double digit unemployment was going to be an inevitable part of the cycle...and the UR is a lagging indicator so it will likely be Spring before we see much positive movement in the job creation.
But i do believe the worst is behind us..though we really need to do some self analysis on what kind of economy we are going to have going forward.
Indeed, in fact some of the stimulus was purposely designed to come online later because it was known that this was going to be a very long slog. That's why they call it the Great Recession. No one can turn this thing around quickly. The good news is that next year, there should be some surprises in the level of economic growth and that should support the market and ultimately support commercial real estate values.
As mentioned, the US financial sector has been sucking more than their fair share of capital out of the system. We are in the process of redesigning a system and it's not pretty, but it will be done for one reason-we are still free and have self-correcting mechanisms. The problem is that we are trained to be fast food people in a slow and grinding recreation of an economy. We just don't like it.
There are things the US has a large niche in like large aircraft manufacturing with Boeing whose only competitor is the EU AirBus company. The US manufactures millions of cars and truck, something we tend to forget because GM is no longer the largest but they are still very large in the automotive world. Someone mentioned that the government doesn't produce anything or provide services. This is definitively wrong since governments at all levels provide services like the police, fire dept, DMV, the Armed Forces, the research organizations like the USDA and the US Dept of health not to mention the prison systems to keep the criminals away from the rest of us. Those are just a short list of the services provided by governments.