"In 2005, U.S. consumers spent (in real terms) $7878 billion - an amount that exceeded their total after-tax income! Businesses invested $1921 billion, even though total U.S. saving was negative [Investment = Savings, theoretically]. The Federal government spent $1988 billion, financing more than one-fourth of that amount through borrowing."
That's from my economics book. It's frighting enough to begin with that American's are doing everything on credit, but it's even more frighting that this credit is foreign credit. All of this spending offsets the inflationary effects of massive imports.
And what a social commentary! The rest of the world is saving their money so that businesses can increase production while America is consuming like crazy and starving their businesses. Maybe there is something to being a capitalist pig
Americans and Their Money
June 18, 2009 | |
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3 comments:
If I was the devil, I would invent two things.
One would be money
Two would be a device that would let people spend money they don't have, then pay for it later for more than they initially spent.
What I learn on CSPAN (boring but worthwhile TV) - We are lending money from the chinese, and having to pay 46 cents in interest back to them
Nah, the devil is a lot smarter than that. Money is great. It makes up for the fall in many ways. Communist economics only ever work if they take on a religious fervor. That's why you never see a Communist government who promotes free religion: communism demands the kind of things you'd only ever do for a God. It's wonderful that God said "I know that none of you will be nearly charitable or intelligent enough to be communist, so I'll give you money and capitalism".
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