No U.S. Economy Without Consumers
You mathematically cannot sustain a leveraged consumer econoomy without consumers. Over 80% of Americans work in the consumer economy or government supported by consumers paying taxes.
If you kill the consumer, you kill jobs.....and if you kill enough jobs, you kill the economy. In the last ten years, our consumer economy was fueled by the excessive extention of credit by the banking system. Now, only few have acesss to credit and the consumer economy is collapsing.
Look around, how many of your friends and neighbors are employed by the consumer economy? It is not the end of the world, simply the end of the world as you know it.
(RTTNews) - Tuesday, Tenneco Inc. (TEN: News ) said that it will close its original equipment, or OE, ride control plant in Cozad, Nebraska, as part of its ongoing restructuring of its operations. The planned closure will affect 460 hourly and 40 salaried workers at the plant, and the impacted employees will receive transitional assistance.
MONTPELIER – Between 200 and 300 state employees may now lose their jobs after state labor negotiations failed Monday, a result that both union and administration officials say will inevitably impact government services.
The layoffs and shutdowns are happening all across America....day after day more and more. Few are hiring and even more are getting wages slashed. Primarily those with acess to credit are surviving and those that work for or support government.
With over 2/3 of American retirees primarily dependent on social security to survive, we are facing massive shortfalls as fewer and fewer are paying social security taxes due to jobs loss or evaporating incomes.
Declining Social Security revenues is not just a mess Fools....this is a 9.09 catastrophe....regardless what the stock market is trading at today.
At some point, if the current policies remain in place...government will be forced to tax Americans 100% of income AND assets simply to meet growing spending obligations. This is not conjecture, simply extrapolation of the current math of declining revenues and taxes and higher spend obligations.