Capitol Hill Blue Forums Political Issues Finance, the economy & Economics USA 2008: The Great Depression

I'm in retail, and let me state here for all to see, this recession that may be started last Sept, with a vengeance.

March wasn't too bad, I actually saw an increase in spending over previous months, less credit cards, more debit and cash(a trend that's been ongoing since early fall 2007)

What's driving the damn recession? FUEL. That's it in a nutshell.

Less discretionary cash due to a tripling of the cost to get to work. Rising food costs due entirely to rising diesel costs.
Rising dry goods costs across the board, driven in large part by the cost of fuel.

So, want to get the damn economy back on track? FInd an alternative to gasoline, simple as that. It's not hard, it's not complicated. People are having to take away from the home, to feed the tank that has to be filled in order to go to work to earn a shrinking dollar to buy yet more expensive staples, this ain't rocket science

a quick look back at history informs us that revolutions happen because of the price of bread. (social revoltions like french and russian as oppopsed to national revolutions agasint foreign rule like US and Ireland)

a bad harvest is said to have stimulated the french revolution.

lack of food definately stimulated the Russian revoloution(s).

again china after a decade of war in the 40's.

Hunger becomes a lens that sharpens the focus on failed systems and usually theres a bastard idealogy (or bastardised version of one) hanging around waiting for discontent. revolutions can follow. then terror and dictatorship.

When life hands you lemons, the tough get going.

Think of the economy as 'the Climate' and recession as 'the Weather'.
I would venture to guess that many (most, actually) of us are aware that adverse weather events will from time to time have some deleterious effect on our lives and so we prepare the best we can (or at least minimally) in advance. No doubt there are some weather events that will kill us no matter what we do to prepare, but in most cases our preparations help us get back to normal faster than we would have done without them.

Recessions are better than weather because are more predictable and absolutely certain to happen.

And they always precede a period of growth.

Even better, for those who are well prepared, is the fact that recessions are a time of opportunity.

Here's just one example

yeah, get into the prom bidness wid dat. might buy me a dress shop and a florist to boot.

giving food in this manner is a disincentive to get up off your ass and find a job and build a better life. Yes were also going to see the rise of the "breadline Queen" living large off handouts.

you're such a libertarian schlack.

well, since food security is a big deal and tied into fuel prices, one alternative is to begin to construct local and regional agricultural economies. old model but works pretty well and with technology being what it is, growing does not have to be limited by anything other a willingness and imagination.

What is causing the current problems? Lots of different things combined together.

Food is probably the least of them. You can still go to McDonald's and get a $1 hamburger. Food in our society has been lowered to a trivial expense on a historical basis. So if it simply goes back up in price, it is not such a big deal IMO.

The credit crunch is a big deal that has ramifications that are dispersing throughout the economy. There would be a significant effect only from the removal of the false stimulus of ever escalating home prices and easy credit. But now it is difficult for businesses to get even normal credit.

And the oil price increase also has broad effects... removing significant purchasing power from individuals and transferring it to foreign nations.

As well there is the fall in the value of the dollar. And there may be a cyclical component where it was about time for a correction, and the over all erosion of consumer confidence that is causing people to rationally be more conservative in their consumption patterns.

So all in all, it works out to be a perfect storm sort of scenario.

ardy, first off let's just agree not to call mcd's food. when we speak of food, let's speak of real food, that we grow, or prepare. mcd's may as well be soilent green. also, while your points are well taken, the average person is more interested in issues such as food. when it gets down to it, people will only begin to take notice when their basic need are not being met in a reasonable fashion. it has been pointed out that uprisings have been spawned by lack of food, etc. it is a symptom, but also can be argued that it is historically a striking point for people who are in want and need.

Real food:

• Milk has increase to nearly $4.50 per gallon in NorCal.
  
• Eggs are nearly $3.00 per dozen here in NorCal.
  
• Bread is $3.50 per loaf