Wednesday, March 26, 2014

The New Economy Needs a Raise!

The Great Recession change the business model in the U.S. for better or worse. Along the way we had to deal with the "great sucking sound" of jobs leaving the country too. Economists rightfully predicted we would become a service economy. But mining?

The rap about the service economy is that its never paid well. Which brings us to the timely discussion of raising the minimum wage for service industry jobs to $10.10 an hour, especially for those people supporting families. It would also reduce food stamp and Medicaid spending. But that's too easy.

The following graph is proof. Funny thing, from the looks of it, the EPA hasn't killed off the energy industry yet despite all the GOP whining.

There's something unsettling about the return of mining as an economic engine when we're competing intellectually with other global powers. And without ObamaCare, the health care business wouldn't be gangbusters either.  


9 comments:

Anonymous said...

Yea except the Fed has distorted the price of everything and manipulated the price of gold, silver, etc. way below the cost of extraction.

You liberal "whiners" are in for a hell of a wake up surprise when you find out the "US" is bankrupt.

Democurmudgeon said...

Ah, we're not on the gold standard thank god.

The fed helps regulate the economy, unlike countries like Greece, which makes us more stable. Unless you prefer what happened in Greece to happen here sometime?

Yes the sky is falling for you, but not here, where I am. What is it you hate about America?

Anonymous said...

And what happened to all the gold? Rest assured it will look like Greece soon enough when people start figuring out you can't create money out of nothing.

"All fiat currencies return to their intrinsic value. Zero."

-Voltaire

The Fed doesn't help the economy one bit. It blows up bubbles. Then they pop.

My sky is blue. I love America. The people just need to wake up.

Anonymous said...

I would ask, why do you want to enslave your children to a private cartel of bankers?

Democurmudgeon said...

"Enslave your children to banks?" That's deregulation of Wall Street, what people on your side of the aisle want. Talk about enslave.

The gold standard failed because U.S. spending could not exceed gold the gold supply. This countries hands were tied, very complicated consequences from that system I'm not getting into here. Look it up. That's what prompted the changed. Ever wonder why it was changed? Find out.

Democurmudgeon said...

Here's what a quick search turned up. By the way, as a citizen, I don't think Americans benefit by making life miserable, which small government types seem to want:

If the supply of money rises too fast, then people will exchange money (which has become less scarce) for gold (which has not).

If this goes on too long, then the treasury will eventually run out of gold. A gold standard restricts the Federal Reserve from enacting policies which significantly alter the growth of the money supply which in turn limits the inflation rate of a country.

The stability caused by the gold standard is also the biggest drawback in having one. Exchange rates are not allowed to respond to changing circumstances in countries.

A gold standard severely limits the stabilization policies the Federal Reserve can use. Because of these factors, countries with gold standards tend to have severe economic shocks. Moreover, because the gold standard gives government very little discretion to use monetary policy ... economies on the gold standard are less able to avoid or offset either monetary or real shocks … since the government could not have discretion over monetary policy.

Unemployment was higher during the gold standard. It averaged 6.8 percent in the United States between 1879 and 1913 versus 5.6 percent between 1946 and 1990."

http://economics.about.com/cs/money/a/gold_standard_2.htm

Democurmudgeon said...

One more summation about why this whole gold standard issue is idiotic-learn from history guys:

"The system was flawed because countries needed to hold large gold reserves in order to keep up with the volatile nature of supply and demand for currency. After World War II, a modified version of the gold standard monetary system, the Bretton Woods monetary system created as its successor. This successor system was initially successful, but because it also depended heavily on gold reserves, it was abandoned in 1971 when U.S President Nixon "closed the gold window."

Anonymous said...

Which is MY side of the aisle again?

Gold has been money for 6000 years. You think bankers can change all that in 100 years? Haha! Gold does not fail. It does not change. More spending does not equal more prosperity. Only more debt!

Your quick search requires intense study. That was funny and sad at the same time. Liberal logic is so far from reality I can't even bare to try to help you.

Read "The Creature From Jekyll Island" PLEASE!!!

Check out Mike Maloney on YouTube. What is the difference between money and currency?

And be ready for a nasty kick in the nuts and a slap in the face surprise. You got one coming I'm afraid, and you have no one to blame except yourself for your own ignorance. Don't sweat it. I used to be that ignorant once too, but you have a lot more homework to do. This isn't about gold. It's about the dollar!!!

Think of all the things that were easily affordable when gold was pegged at $35/ounce.

Anonymous said...

You still seem to think the Federal Reserve is federal?

Who exactly are the shareholders of the private central bank that issues the US currency? There's a very good reason why states were only allowed to coin gold and silver as money.

Ever heard the phrase, "it's not worth a continental?"

I'm sure glad I don't have children to worry about. What is the unemployment rate now by the way? 6%? Haha! Yea consumer confidence at a 6 year high too.

Oh and there is a big big difference between a US citizen and an American! One is a slave and one is not.

Your mind needs to be open for it to work. I can't believe more sheeple haven't figured this all out by now.

Tell your kids good luck paying for 80 million baby boomers. With all this manufacturing jobs coming back so quickly. 400 trillion in OTC derivatives.