WHY this time IS VERY DIFFERENT!!!!!!!!
In the seventies, we were a big chunk of the world's pruducer of goods....so when the price of goods rose....we were able to pass it on to our workers through wages increases......so as the price of inputs rose.....our wages grew in the same direction....
This time we are primarily consumers but wages constrained by international wage pressures......as a result as the price of inputs go up, we are unable to increase wages and in many cases jobs are being cut and/or wages reduced due to lower profitability.
Currently, U.S employers are hiring at record LOW rates.....so when one loses a job, it is very difficult to find a replacement....especially one of equal wages due to the migration to lower paying jobs......so when government releases unemployment figures, it is releasing a deceptively low number due to the fact it ASSUMES are historical job creation environment in its figures(Birth/Death adujstments) which is not present.
Right now, are record number of Americans are receiving substantial wage cuts or working only part time when they want/need to work full time......due to profitability constraints from inflation and other factors....the only place employers can effectively cut is jobs, wages, and benefits.....and it is currently happening at a record rate affecting tens of millions of workers.
Never before has America's citizens, businesses, real estate, and governments been so burdened by so much debt........as a result, simply interest payments are consuming a record amount of money.....as the government pursues an inflationary monetary policy, it will drive up interest rates and down wages and decrease sales causing debt to consume an ever growing percentage of the GDP. This process will continue until debt is consuming practically our entire GDP...Zombulation.
Add together an incredibly high debt burden, with rising interest rates, with increasing prices, and decreasing wages, high unemployment and falling profits leading MUCH LOWER tax reciepts due to evaporating incomes and sales....and we will see tax receipts to government EVAPORATE!!!!
Government spending is about $6.5 Trillion dollars....or half the economy....if our private sector is not spending and now our government is forced to cut way back......our economy will shrink to a prune against an unsustainable burden of debt payments forcing massive defaults and driving us into the worst depression in history.
As a nation we are rapidly approaching Z Day...the day where we as a people will be forced to confront whether we continue to pursue a destructive inflationary policy destroying profitabilty and wages and jobs or whether we choose to restructure our debt and wages to sustainable levels.
Let's see how this unfolds.....it is a mess.
Now ask yourself...why would your government leaders pursue a policy they know will destroy their own economy and citizens???