Wednesday, December 25, 2024

Steady by Jerks 12-26-24

The US Economy has experienced periods of plenty followed by periods of want every 20 to 40 years from 1890 to 1990, but the cycle has shortened to 4 years. 

US Economic History had a short lived “golden age”, from 1890 to 1930. The technology developed in the 1800s was ready to apply to city living. The Steam Engine had been applied to running our factories, Better microscopes had discovered Bacteria, We added Chlorene to water to end water-born diseases, Sewer Systems were built to keep river water cleaner, Electricity was make available in homes following the application of AC Hydro and Coal Power and replaced gas-lamps and candles. Night shifts were able to double US manufacturing throughput.  Home Appliances were developed Refrigeration was applied to Ice Boxes. Indoor Plumbing replaced “out-houses”. Most homes had telephones and radios. Everybody went to the movie theaters.

The brakes were applied with the “Great Depression” that began after the Stock Market Crash in 1929. Unemployment was 25%. Banks failed and people hoarded cash to survive. The Midwestern “Dust Bowl” was caused by drought in the early 1930s and farmers lost their family farms. The banks sold these farms to agribusinesses.

By 1936, a few more jobs were available due to Generational Wealth, US Government-Sponsored Public Works, building Hydroelectric Dams.

By 1939 the US began to manufacture more Military Equipment to send to Europe to defend against Nazi Germany’s invasion of Poland. In 1940, Nazi Germany invaded France and more Military Production was needed. In 1941, the US entered World War II with the Japanese bombing of Pearl Harbor and the entire US population was employed by Defense Contractors. World War II ended in 1945.

With most of Europe being bombed, the US became the world’s manufacturing country from 1945 to 1950. Manufacturing jobs were plentiful and US families were prosperous. This prosperity lasted through the 1960s when most homes had Televisions and Air Conditioning that allowed populations to move South.

Government overspending in the 1960s created inflation that came to a head in the 1970s with interest rates reaching 18%. In the 1980s, the technologies developed in the 1970s allowed us to replace our vacuum tubes with integrated circuits. We had pocket calculators and pocket radios. We could make our own Personal Computers using parts from Radio Shack.

In the 1980s, the US enjoyed a period of plenty with the PC and Cell Phone Revolutions. The PC increased Productivity. Programmable Logic Controllers increased Productivity. The US had a clear technology advantage. In the 1990s, the Internet began to replace the US Mail. 

In 1993, the US increased off-shoring its manufacturing to countries with cheap labor costs and no environmental restrictions under Clinton.

In 2000, the US experienced the 9-11 attack on the Twin Towers and began the wars in Afghanistan and Iraq costing an additional $10 trillion by George W. Bush. 

In 2008, the “Great Recession” was caused by banks giving home loans to unqualified buyers and selling these loans as investments that crashed when the loans defaulted. This recession lasted for 8 years and was joined by $10 trillion in Federal Overspending on the Climate Change Hoax by Obama.

In 2016, Trump followed Obama and saved the US Economy replacing war with total economic isolation for “bad actors” like Iran and high Tariffs for China. Trump increased oil and natural gas production and reduced the price of gasoline to under $2 per gallon.

In 2021, Biden opened the borders, ended the sanctions on Iran, allowed lawlessness to rise in the US and crashed the US economy with Federal Overspending on the Climate Change Hoax that created 35% Inflation. Biden restricted oil and natural gas production and the price of gasoline rose to $3.50 per gallon.

In 2024, Trump was elected to close the borders, reimpose sanctions on Iran and end the lawlessness in the US. Trump will resume building pipelines and return the price of gasoline to under $2 per gallon. He will begin to deport the 20,000 unvetted illegal migrants starting with criminals and gangs and all who have Deportation Orders, who entered the US from 2021 to 2025.

The next technological advance appears to be Artificial Intelligence that will increase productivity and reliability of data systems and robotics for automation.

The Ups and Downs of the US Economy have shortened to 4-year Presidential terms between Republicans and Democrats. We now have our prosperity and poverty cycles tied to our political elections. We will need another 12 years of Republican dominance to work our way out of our $36 trillion Debt.

Norb Leahy, Dunwoody GA Tea Party Leader

 

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