tag:blogger.com,1999:blog-11027528911364475.post1951835051453323109..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Can Capacity Destruction be Good for GDP?Jakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11027528911364475.post-77193681253842563532009-12-18T09:10:57.113-08:002009-12-18T09:10:57.113-08:00I am Anon1,2 and now 3. Good point about the low q...I am Anon1,2 and now 3. Good point about the low quality of goods vs. the 1970's but, with credit contracting,wages stagnant and a still massive hit to wealth, consumption will be muted or diverted(uptick in sales of used, remanuf. appliances).<br /><br />The pulling of demand forward worked against both Asia and the US. Asia with manuf. plants, US with office, retail and an explosion in consumer credit over the last 20-30 years.<br /><br />Lack of growth in world trade should be good for US manuf. products but the downside is less dollars to recycle into US debt. It appears to me that we are a damned if we do, damned if we don't moment in more than a few very important matters.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-35430702165046049592009-12-18T08:36:26.996-08:002009-12-18T08:36:26.996-08:00Anon1: Am I old enough to remember the 1970's?...Anon1: Am I old enough to remember the 1970's? Nope... lived through a few of those years, but definitely don't remember.<br /><br />Great point about demand being pulled forward, but wasn't a large portion of that demand pulled forward from Asia (which has driven productivity figures per Anon2)? If the world reverts to less interdependence (i.e. less trade), that should on the margin be good for us production of goods.<br /><br />Not sure U.S. consumers are ready to revert back to using things til worn out (i.e. I am on my 5th Ipod since 2002), but even if they were things are made at such low quality they won't last (the reason for 5 Ipods was in part due to new technology, but also due to them breaking).Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-54142149434396549252009-12-18T08:26:29.446-08:002009-12-18T08:26:29.446-08:00The increase in productivity is giving a false rea...The increase in productivity is giving a false read. If I as an american citizen operating a company under US laws, outsouce labor/services to a foreign nation and see my profits rise as hiring is done outside the US, my company's productivity increases. The BLS has no way of tracking these out/inflows.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-61188552090605336042009-12-18T08:22:06.963-08:002009-12-18T08:22:06.963-08:00Combined with the recent capacity destruction, am ...Combined with the recent capacity destruction, am I crazy to think that businesses may NEED to invest in new (or upgraded) capacity sooner than many think?<br />[[[[[[[[[[[[[[[<br /><br />Are you old enough to remember the 1970's? Decrepit auto's, commercial real estate, the use of things until they were broken,unusable? The amount of demand pulled forward from the early 80's until these last few years was what caused the need to increase capacity. Good luck pulling yet even more demand forward now to combat a similar situation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-77144169230799150402009-12-18T06:48:36.989-08:002009-12-18T06:48:36.989-08:00as you said in the original post capacity is also ...as you said in the original post capacity is also destroyed but increasing productivity and efficiency. So while in general what you say here _can_ be realized the relationship but _should_ notИгры рынкаhttps://www.blogger.com/profile/12001273098690387194noreply@blogger.com