Reply #5: When we manufactured things in the US

[salin]

consumption drove investment in the manufacturing sector drove employment and higher wages and made for a broadening economic middle class. It was a healthy market.

As we have shredded our manufacturing base (sending off-shore) - there was little consumption that boosted local economies - instead boosting the wallets of the investing class (higher stock prices) - but encouraging a decreasing amount of domestic investment leading to expanding the decent wage jobs available. The one sector that actually led to $ flowing to communities (ala labor) has been the housing sector - which fueled investment in the financial and labor (home building and service economy facilities such as fast food joints) construction industry.

In this era, buying stuff to buy stuff keeps the markets floating, but doesn't do much for local economies except increase the indebtedness of citizens. Hence the rather worrisome recent statistic that in recent months households have slipped into negative earnings (spending at a higher rate than earning, spending includes paying off debts) - is a very, very big deal.

We are not in a healthy economic period.