Stock Market Shenanigans

[brewster]

Like all tools it's not perfect, but it measures gross growth of the economy. The 1st graph is YoY growth, and so doesn't need inflation adjustment, the 2nd says it's in 2009 dollars, so yes it's inflation adjusted. And it's per capita, the actual growth would be dramatically more if not adjusted for that since the population nearly doubled during that period.

Again I was challenging the idea that before the depression it was "boom and bust" and after the great depression it was "steady". I never said that production didn't increase overall. Both before and after the great depression it has been the alternating business cycle as usual with an overall upward trajectory. Keynes sought to stop the cycle by changing fiscal policy, ie, taxes and government spending., and to some extent changing monetary policy, by playing with the money supply. But we can see that we haven't smoothed the cycle, our record is actually really bad.

Jeez man, what you said was pretty clearly not that:

There has been no steady growth. The economy has alternated between growth and recession since the great depression There has been no smoothing of this trend, and you'd be hard pressed to say that we've done better than laisse faire. I'm not suggesting that we shouldn't attempt to regulate the market at all, but saying there has been a period of sustained growth is simply not true.

But even your new position is not supported by the facts. Look at how the GDP takes off after the early 1930s. Argue about why, but not the fact there was a change in the rate of growth. In addition if you look at the perturbations between 1900 and 1929, the instability as a % of GDP is far higher than today. A dip of $2k on this chart in 1921, when the economy was $8k, is 3X bigger than a $2k dip in 1978 when the economy is $25k.

[doc_loliday]

If you look at my response within the context of who I was responding to it shouldn't be that hard to understand what I'm saying. jbird said it was boom/bust, then unprecedented growth. So when I said it wasn't steady I was referring to his comment. Sure, steady could mean overall growth, but again if you look at the context of who I was responding to, it's pretty clear I was not making a brand new point.

If you want to talk about a different topic, like why production changed, we can do that too. Production wasn't due to politicians, it has to do with the nature of the economy, the technology increases and access and ability to use new resources that permitted those changes, which is the same reason why production possibilities have always expanded. In this instance, electrification is probably one of, if not, the most radical technologies created, and it helped kick off a massive economic multiplier. But again, the business cycle was there before and after the great depression.

[kybkh]

Long term credit holder, 700+ with good income gets 12.99%. My highest is 14.99% at lowest was 10.99% with 24 month interest free on balance transfer. Decorated the house that way from 2007-2012. Ain't shit left to buy now though. Bye HH Gregg...

We pulled the purchasing power for this coming decade forward using low interest rates. What happens now though? A flatter, bigger TV? Don't need it. A faster computer? Don't need it. A slimmer, longer lasting cell phone?? Don't need it. Noticed a trend lately. People ain't turning back in there cell phones. Not buying no TVs. Only the essential lawn tool or recreation toy.

Shit better start breaking fast! Bad news for Blue Collar workers is new shit is so cheap repairmen are no longer required. Installed by the Geek Squad...Mexican Lowes contract labor...

What a world.

Donald better pick up the pace. I am getting board.

When is the great Pustch we have all been waiting for god damn it?

**If you are NSA and you are reading this, this is only meant ironically. Please do not take this literally.

[SuburbanFarmer]

Long term credit holder, 700+ with good income gets 12.99%. My highest is 14.99% at lowest was 10.99% with 24 month interest free on balance transfer. Decorated the house that way from 2007-2012. Ain't shit left to buy now though. Bye HH Gregg...

We pulled the purchasing power for this coming decade forward using low interest rates. What happens now though? A flatter, bigger TV? Don't need it. A faster computer? Don't need it. A slimmer, longer lasting cell phone?? Don't need it. Noticed a trend lately. People ain't turning back in there cell phones. Not buying no TVs. Only the essential lawn tool or recreation toy.

Shit better start breaking fast! Bad news for Blue Collar workers is new shit is so cheap repairmen are no longer required. Installed by the Geek Squad...Mexican Lowes contract labor...

What a world.

Donald better pick up the pace. I am getting board.

When is the great Pustch we have all been waiting for god damn it?

**If you are NSA and you are reading this, this is only meant ironically. Please do not take this literally.

Oh don't worry, they'll make sure your stuff breaks more quickly. I've heard legends of QC guys in car factories rejecting parts that are made too well. We all know how quickly a new truck bed can rust already.

[heydaralon]

I have talked to GCF a lot about my Amway pyramid scheme and we are both going to make a killing on this. This the last chance for anyone on this forum to make boatloads of cash. The good ship gravy is about to leave the port, and I don't wanna see anyone here left on the dock.