It’s good political engineering - since democrats would support the IRA regardless, by placing IRA projects in red states, you thus make it so you have Republican constituencies that support the IRA for a separate reason (economic development/jobs).
American Economics Thread
- Thread starter Bernard
- Start date
Pretty pathetic considering a lot of industry should be leaving the EU and moving to the US because of the lower energy costs there.
My guess is the higher interest rates are having a depressive effect on the market and with less demand you have less production.
My guess is the higher interest rates are having a depressive effect on the market and with less demand you have less production.
They have the to reduce the interests rates in a big way soon.
@chgough34 I wonder what is fueling those impressive GDP numbers that the US is hitting?
Also, how is it going with re-shoring manufacturing in the USA?
I think people need to realize it is going to take a long time for any sort of re-shoring initiative to bear fruit. The United States hasn't engaged in any large scale industrial policy in decades. So basically they are going to have to start from scratch in a lot of cases. Another thing people will have to accept is that in this early stage there are probably going to be some failed projects due to immaturity of their process.
If you look at the link I posted on the previous page for tracking CHIPS act and IRA factory construction those things will take years to come to fruition. I think if the US is going to have any success in re-shoring manufacturing it is going to face some failures upfront and you likely wont start to see any significant changes until the late 2020's at the earliest.
China didn't build out its industrial base overnight, and it was only after decades of continued investment and learning from failures that it was able to rise to the level it has today. You wouldn't be seeing the success in battery and solar energy without the previous decades worth of work.
first issue that US needs to solve is getting qualified labour for manufacturing.
second issue is if China throws any hidden bombs on US' way. Onshoring entire industries is extremely complex and have multi-level deep dependencies that sometimes you don't even know until you actually see them right in front.
would be really funny if (when..) the US suddenly finds out that some obscure industrial small part or process depends on a Chinese part or IP. that would be really fun lol
second issue is if China throws any hidden bombs on US' way. Onshoring entire industries is extremely complex and have multi-level deep dependencies that sometimes you don't even know until you actually see them right in front.
would be really funny if (when..) the US suddenly finds out that some obscure industrial small part or process depends on a Chinese part or IP. that would be really fun lol
"The increase in real GDP reflected increases in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment, and residential fixed investment (table 2). Imports, which are a subtraction in the calculation of GDP, increased."
I don't know why people are acting like it's a huge mystery.
For example, car sales.
Or even better, just look at the import data...
antiterror13
Brigadier
Getting qualified labour is a first step and still many many issues to deal with
Do they want/willing to work hard without being crying baby? .. another issues are union, lawyers, politics, etc
Part 6:
In the year ending June 30, the number of corporate bankruptcy filings increased by more than 40% compared to the previous 12 months.
CNBC published an article listing ten major restaurant chains that filed for bankruptcy this year:
A large number of KFC stores have suddenly closed in the Midwest:
A chain of gas stations and convenience stores in the Midwest has also closed abruptly
According to the Daily Mail, the US lost 41 more bank branches in just a recent two-week period:
Thousands of store closures have already been announced for 2024, and now Big Lots has increased the number of stores it will likely close “to a maximum of 315”:
Poll after poll has shown that the economy is the number one concern for American voters during this election season. If the economy were in good shape, we wouldn’t be getting results like this:
Right now, the economy is in such bad shape that even Dollar General customers seem to be running out of money:
According to Zero Hedge, several regional Fed business surveys just fell further into bear market territory. contraction:
Approximately two-thirds of the entire U.S. population no longer believes the American Dream is “still alive”:
Total household debt in the United States has reached an all-time high:
Consider what happened in Pine Bluff, Arkansas:
The Wall Street Journal/NORC poll found that only 10% of Americans believe that becoming a homeowner is “easy or relatively easy”:
Home prices just hit another all-time high:
Overall, U.S. home prices have risen more than 1,000% since 1974:
Millions of homes are being purchased as investments, and that includes even a large number of low-priced homes:
In recent years, “van life” has become quite trendy, and more than 3 million Americans now fall into this category:
According to two well-known economists, “only about half of the children in 1980 ended up richer than their parents”:
As a result, it now takes a huge amount of money for the average family to live the American Dream:
If you live in Hawaii, it takes an annual income of $260,734 for a family of four to live the American Dream. If you live in Mississippi, it takes an annual income of $109,516 for a family of four to live the American dream.