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Are we going to have a bubble-and-bust economy for the foreseeable future?

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raccoon Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:46 AM
Original message
Are we going to have a bubble-and-bust economy for the foreseeable future?
There was the dot-com bubble that burst around the turn of the century, then the real estate bubble.

Once upon a time, the US economy was based on manufacturing. Many of those manufacturing jobs moved to where the cheaper workers were, and the US became a service economy.

By its very nature, I dont see how a service economy can have healthy, sustained growth.

Disclaimer: I am not an economist nor do I work in financial services.

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Cant trust em Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:50 AM
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1. My initial sense is yes.
Service economy aka fad driven economy.

I could be talking 100% out of my ass.
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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:51 AM
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2. Even CNBC has admitted that the "service" economy is a FAKE economy.

And yes they used the word fake. Countries who don't manufacture basic goods are fucked! Except for the unpatriotic traitors that get paid for selling us out. And that would be the Republicans and Wall Street of course.
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rfranklin Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:54 AM
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3. We're running on fumes right now...
The economy has been running on debt for the past twenty or thirty years. The average worker has had no income gains in that time. Instead, consumer were offered more and more debt, with no foreseeable way to pay it off. In the past, you would borrow knowing that your circumstances would probably improve. Now you can almost be guaranteed that you will end up with a job that pays less than the last one if you are over thirty years old.
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Yavin4 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:55 AM
Response to Original message
4. The Problem with a "Service" Economy
Edited on Wed Sep-16-09 10:58 AM by Yavin4
is that you don't develop the skills and experience to build future development. When you have a mfg based economy, you are building the talent and the tools which will advance production to things like using less pollution and waste.

In a service economy, people don't learn a damn thing, other than how to pour a cup of coffee at Starbucks.
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cbdo2007 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:56 AM
Response to Original message
5. Yes and if you can't beat them...join them. There's lots of money to be made
in economy's such as this one.
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enid602 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:57 AM
Response to Original message
6. bubbles
Bubbles will occur whenever investors buy something with the idea that it will appreciate in value, or sell something they feel will depreciate. Bubbles will always be there, but the effect of these bubbles can be minimized with strong, proactive governmental intervention.
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Overseas Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 10:57 AM
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7. That's what the corporations who control our politicians hope. //nt
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Warpy Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-16-09 11:10 AM
Response to Original message
8. Yes.
The bubble and bust cycle is a direct result of wealth concentration through unfair taxes having run its course. The only way to bleed more money off the rest of us is to create bubble markets, suck in the gullible who think they're smart enough to get out in time, and then bust the bubble, taking the sucker's money as profit while leaving him holding an empty bag.

The bubbles will just keep getting smaller and smaller as there are fewer chumps with money to get sucked into the bubble psychology.

The rich love quick, easy money. They won't risk their wealth on anything with slow returns, like rebuilding the industrial infrastructure and putting us back to work.
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