Quote:
Originally posted by Dagnabit
Well, yabbut, a recession is inevitable at some point.
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Of course it is. Please reread what was posted. Greenspan, et al has no control over recession. He or Bush Jr can create one by 'too low interest rates' or a tax cut. But neither man really can avoid a recession. They are created by people we vote for to run the economy.
Recessions are directly traceable to a shortage of innovation. Look at Japan in the 80's. Look at all those killer products - Walkman and the many spin offs, VCRs, computer peripheral devices, CD-Roms, Toyota quality and Honda reliability, superior TV and radio designs, Honda protable generators, innovative battery technologies, world leaders in fiber optics and GaAs semiconductors (what do your think made 24 HBO possible?), electronic games, portable communication devices, high tech steels and other metallurgy and ceramics, tool and die machinery accurate to less than .0001 inches and computerized, high temperature superconductors, etc.
1980 Japan was a booming economy because killer products came out in waves. However, name a killer product from Japan in the last 5 years. PlayStation 2 (other game machines are being discontinued)? Where are all the new, killer, Japanese products? Few to none - which is why Japan is in recession.
Japan also instituted tax cuts and major public works projects to 'stimulate' their economy. IOW they used the same neo-classical economic concepts that are behind Bush's silly, pathetic tax cut. Those money games did not solve Japan's recession and will not stop an American recession.
Recessions are directly traceable to a shortage of innovations typically 4 to 10 years earlier - or traceable to governments who try to stimulate economies using money games.