We are told consumer spending drives something like 70% of our economy.
http://www.buildingteamforecast.com/...CA6408550.htmlThe strong growth industries will be financial and business services, capital goods (including buildings), government and income-sensitive consumer services. Consumer goods industries will be relatively weak.
In short, making a good for consumer goods? 2008 may not be the best year. This is the area most pertinent for you and I.
I disagree that government services will remain strong; most government agencies are strapped for cash and are looking to eliminate staff and services, or outsource (and offshore) them. (then wonder why you got that postcard in the mail about the public referendum to discuss adding to or replacing that prison complex in your city...)
Now look at this:
http://www.cbo.gov/ftpdoc.cfm?index=7731If the GDP is composed from what consumer goods and services bring in, then it's clear -- more people have to make goods and services to sell. If more people made goods and services that were purchased, this would raise confidence and morale and we'd end up with an upward cycle rather than a downward one.
I'm no economist, so please tell me where my logic is all F!!!ED up.
Thank you much.
:bounce: