[Silver]

PS
Your comments regarding the weaking dollar. Since we have a weak dollar that means that our goods are cheap overseas, therefore we should be making a killing selling our stuff over seas................how come this is not booming our economy? Selling our stuff to other countries.................

Because exports make up 12% of our GDP.

You seem to be operating in a fantasy world where the Legislative branch has a set of balls and does something other than what the President wants. That hasn't been the case since Clinton, in case you weren't paying attention the last few years.

Also, you're somewhat right about economic cycles, but to insist that the President and his policies have no effect on them is daft.

 

[ohio]

Your comments regarding the weaking dollar. Since we have a weak dollar that means that our goods are cheap overseas, therefore we should be making a killing selling our stuff over seas................how come this is not booming our economy? Selling our stuff to other countries.................

Sigh.

1) Manufacturing accounts for about 14% of our economy. It takes a little while to ramp up new production. It is also extremely dangerous, because the dollar might bounce back. Currency fluctuation is not conducive to large capital investments, and won't happen until we know it's either stable or never coming back.
2) Raw materials have gotten more expensive. Not only that but the dollar we use to purchase them has weakened. Depending on how the cost of goods breaks down mat'l/labor, we're in really bad shape and we tend to build things that use more materials than the competitors (see weight of american car vs. weight of japanese car).
3) You're dumb.

 

[ohio]

Because exports make up 12% of our GDP.

Manufacturing as % of GDP is the more important figure, because the figure you're quoting would be the one we would expect to increase with a dropping dollar if our economy was, say, 60% manufacturing.

 

[Silver]

Manufacturing as % of GDP is the more important figure, because the figure you're quoting would be the one we would expect to increase with a dropping dollar if our economy was, say, 60% manufacturing.

Well, all exports should be more attractive. Stuff includes services as well.

Having said that, I was lazy and didn't bother to look up manufacturing specifically. I guess it just means that SDH is even smarter than we think, eh?

 

[Serial Midget]

We are now paying for the over inflated booms that had no econimic substance (i.e .coms)

Well I, and many, many of my fellow subcontractors financed by webvan, had a kick ass time banking easy money delivered from the pockets of fools who thought they could get rich without doing anything themselves.

I signed a contract without even negotiating - I was paid about $28.00 for graphic processing that primarily involved color tweaking images that where provided to me by another sub who also had a similar contract. I could process $300 to $400 in images EVERY hour... webvan was paying huge amounts of cash for work a high school student could do. I even billed out for images I only looked at and approved.

The layers of subcontractors was so thick I didn't even know I was processing their images until I recognized them on line.

Meh... I did enjoy my 5 years of early retirement.

 

[SDH]

Sigh.

1) Manufacturing accounts for about 14% of our economy. It takes a little while to ramp up new production. It is also extremely dangerous, because the dollar might bounce back. Currency fluctuation is not conducive to large capital investments, and won't happen until we know it's either stable or never coming back.
2) Raw materials have gotten more expensive. Not only that but the dollar we use to purchase them has weakened. Depending on how the cost of goods breaks down mat'l/labor, we're in really bad shape and we tend to build things that use more materials than the competitors (see weight of american car vs. weight of japanese car).
3) You're dumb.

Dude, you show you ignorance just by your 3rd answer

But, regarding your other points here goes.............

First, regarding manufacturing, if you increase the GDP even by a few percentage, our economy will feel the positive effects. It would almost be expressed by an exponential function. So even if Manufacturing is 14% of GDP increasing that a few percent would have considerable effects on our economy.
Second you state it would take considerable cost to ramp up "new" production, I agree, however I am talking about ramping up production on current goods not new goods. This is done constantly.
Next you speak of raw materials? The Us is rich in natural resources and food resources, just b/c we import oil (and middle east oils accounts for a low percenatge of imported oil to the US) does not mean we as a country are not rich in natural resources. I wonder what our raw material import percentage is to our finished goods import percentage. I will probably bet is its a pretty big margin PS, regarding your last statement in point 2, ha, we kill ourselfs in labor costs not material. That is why manufacturing jobs are leaving the country in the first place.

Now for the dealth blow, I ask you this professor, what is our largest GDP product?????????? Umm, I will take services for one hundred, Pat! Yes, Services, under aweak dollar our Services should be cheaper abroad. In the Services sector barriers to entry are relatively small say compare to building cars, so there would be ample room for start ups so why are we not making a killing? Maybe we are Dumb, or lazy? Either way that is not the fault of the gov't.

So I go back to my original test, don't believe me, see above, ask someone in the markets (especially cash markets ) what drives the economy and produces economic up and down turns? Or maybe you do not run in those circles? Actually, even if I was to concede that Presidential policy plays a role, you probably will not feel the effect from an economic perspective until the next presidential term or two.
Economic cyles my good, man Economic cyles...........


Next you tell me they blew up the Trade center and a plane did not hit it! LOL

Happy Turkey day

 

[ohio]

But, regarding your other points here goes.............

See "steel."

See a breakdown of "services" and then try to figure out how many of those are easily, directly exported. I don't see Japan snapping up american waiters and hotel desk clerks. I'll put it this way, for the most part, services = people, and if you export the people, not only do they then have to support themselves in their new local economy, but only a multinational company is actually bringing their income back into the US. You will also see growth among the much smaller percentage of services can be performed remotely, but since so many of those have been outsourced out of the US, we no longer have those capabilities readily on tap. I don't know if you realize this, but training someone to perform services takes time and investment, and just like tooling up a factory, few will make that investment in an extremely volatile market.

As someone that works in client service, internationally, I can assure that yes this is good for business. However, we make up a very small portion of that "services" column.