9 ms·
This puts it mildly. Paul Volcker has been (perhaps unfairly) called the Father of the Rustbelt, due to how rising interest rates broke the back of manufacturin
by frontiersummit 4y ago
This puts it mildly. Paul Volcker has been (perhaps unfairly) called the Father of the Rustbelt, due to how rising interest rates broke the back of manufacturing in the American Midwest during the late 1970s and early 1980s. "Cooling" the economy means layoffs and plant closures, often concentrated in specific geographic regions. The only question is: what firms and employees get sacrificed to placate the inflation Gods this time around?
- ethbr0 4y agoRising interest rates & a strong dollar Ironically, you can generally have your financial house in order as a country or be globally manufacturing-competitive, but not both*. * Exceptions Germany, Japan, et al., but as you go up the value chain you gain enough profit leeway to paper over the general rule.
- Clent 4y agoWhy are those countries the exception and not America? Other countries figure it out. America cannot. Therefore, it's not possible. America!
- gretch 4y agoThe poster you are responding to is probably incorrect in many regards. There aren't really 'exceptions' just 'differences'. For example, Japan's economy definitely is not feeling good at the moment, even if some particular metrics are performing at a top tier.
- aksss 4y agoWe should not ignore that for countries like Japan and Germany, they have an enormous advantage in not having to spend realistically on a defense budget relative to their risk-prone geography, living as they do under an umbrella. https://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?end=2020&locations=EU&start=1960 https://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?end=2... https://www.washingtonpost.com/news/worldviews/wp/2015/02/19/germanys-army-is-so-under-equipped-that-it-used-broomsticks-instead-of-machine-guns/ https://www.washingtonpost.com/news/worldviews/wp/2015/02/19...