We had a 22 percent increase in domestic investment.
That’s good, it really is, but that in and of itself doesn’t mean much. Industrial production left the US for a reason. What’s changed? The cost of living has only gone up, especially housing, which means the cost of domestic labor is still going to be much higher than many other countries, so how do these US producers plan to turn this new capital investment into a profitable enterprise? How are they going to profitably produce quality goods that Americans can actually afford? Are they only going to make luxury goods for the highest income Americans? If so, who’s going to serve the middle and the bottom income levels?
It is precisely like when Russia’s currency tanked like a stricken submarine, which meant their PPP-adjusted GDP shot up the rankings and became one of the highest numbers in the world, which all the tankies promptly seized upon and used as an example of why the sanctions are actually helping Russia, by boosting its domestic economy, which is why everything is going great.
Goal of the sanctions was to fund US oil/lng extortion profits so that they could fund GOP and climate denial. PPP GDP is not really boosted by currency devaluation. Even if costs are stable in Rubles, the GDP is in USD, and Russia has had high inflation due to high military pay, and labour needing high wages as alternative to joining military.
Maybe slave labor.
Or possibly something that actively steals wealth. Like, buying out mortgages then telling families to triple up in the house to cover less food and higher rent.
Basically whatever you can imagine that makes things worse for most of us is probably the plan.
That’s good, it really is, but that in and of itself doesn’t mean much. Industrial production left the US for a reason. What’s changed? The cost of living has only gone up, especially housing, which means the cost of domestic labor is still going to be much higher than many other countries, so how do these US producers plan to turn this new capital investment into a profitable enterprise? How are they going to profitably produce quality goods that Americans can actually afford? Are they only going to make luxury goods for the highest income Americans? If so, who’s going to serve the middle and the bottom income levels?
It is precisely like when Russia’s currency tanked like a stricken submarine, which meant their PPP-adjusted GDP shot up the rankings and became one of the highest numbers in the world, which all the tankies promptly seized upon and used as an example of why the sanctions are actually helping Russia, by boosting its domestic economy, which is why everything is going great.
The sanctions on Oil and Gas certainly were helping Russia because they are lacklusterly enforced but drove up the global prices, benefiting Russia.
By half assing sanctions, the EU and US helped bankroll Russias war chest in 2022.
Goal of the sanctions was to fund US oil/lng extortion profits so that they could fund GOP and climate denial. PPP GDP is not really boosted by currency devaluation. Even if costs are stable in Rubles, the GDP is in USD, and Russia has had high inflation due to high military pay, and labour needing high wages as alternative to joining military.
Thing is the article says the actual domestic investment growth was 9.8%, not 22%.
Inventories was also most of that. Means less production in future quarters.
exactly, that boost was to delay the inevitable crash that just around the corner
Maybe slave labor. Or possibly something that actively steals wealth. Like, buying out mortgages then telling families to triple up in the house to cover less food and higher rent. Basically whatever you can imagine that makes things worse for most of us is probably the plan.
Certainly not the government!
And laughter ensued from the 1%