Our leaders are missing the issue

Our leaders are missing the issue

the economy is in the tank because people do not spend

People are not going to spend
they can not, until an outside force gives them more cash

we have primarily a service based economy

a service based economy can only operate for so long -

to explain the point to your children, try this

envision a self contained community
the baker uses the barber that uses the laundry that....etc

even if everything one needs for day to day function is available in the community,
and utopia spending is reached, where no one holds a dollar

only if the value of purchased breads, haircuts, washes matches perfectly will it work perfectly
there is a natural lag and lid on the community controlled by the least spending person

if: something has to be sold out side of the community, and something has to be bought and brought into the community, then the dollar flow also has to balance

the moment the bought items exceed the sold items (trade deficit) a financial disparity exists

soon the dollars passed around the community decrease, so the community has to print more

since there is a natural loss of value, when that happens, it creates a cycle of printing more, and them having less value outside the community

that's what we have

and we are progressively eliminating our manufacturing options, thru legislation, higher scale of wages, etc

so - although we could delay the inevitable, and print more dollars

unless this country produces something the rest of the world will pay for,

we are done - the only discussion is when