American Economics Thread

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gelgoog

Brigadier
Registered Member
Except China's economy is already running at full blast. All their production is running and they are supplying all those countries on lockdowns. Once production in the USA starts up again perhaps they will find out that, like those PPE factories they made in the US, their production isn't competitive. Then those facilities will shut down.
 
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Deleted member 15949

Guest
AssassinsMace said:
There's so much optimism in the US recovering because of the vaccine. Not saying it won't happened but they said recovering from like recessions usually took 2-3 years but that wasn't the case for the 2008 Western Financial Crisis. After a decade some believe the US still hadn't recovered. Why? They said it was because before the only game in town was the US and in part, the West. So when there were recessions, money just moved into different sectors of the US economy. What made 2008 different was it wasn't just the US and the West. There were more places around the world for people to keep their money safe like China or other countries that made money from China. That's why recovery took longer than usually. Today it's happening again and with much more money. The US maybe trying to cut-off technology to China but for some reason tons of cash from the US financial sector is pouring into China. Believing the US will recover quickly just rolls off the tongue so easily like how the US thought it would be number one in handling a pandemic. You hear pundits saying as the US recovers, China will slow down because of there will not be a need for pandemic based goods like PPE and electronics for working from home. The same excuse you're hearing when they said China's economy was going to collapse from Trump's trade war and then when it didn't happen as predicted, they just moved the goals posts and set another time further down the line would be when China collapses and yet still no collapse.
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Siri, is there a difference between supply and demand shocks?
 
V

voyager1

Captain
Registered Member
SleepyStudent said:
COVID was a demand shock. There was enough fiscal stimulus to prevent hysteresis in the labor market. Financial crises are supply shocks.
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didn't the closed factories contribute to the problem along with the shipping crisis where due to wrongly allocated container ships and bad infrastructure, prices shot up and supplies were delayed for months?
 
horse

horse

Major
Registered Member
SleepyStudent said:
COVID was a demand shock. There was enough fiscal stimulus to prevent hysteresis in the labor market. Financial crises are supply shocks.
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China shut down it factories in 2020, no supply.

The ensuing lock downs meant no demand.

Covid was a true test of the strength a country. Covid caused both, a supply shock and a demand shock. There is a worldwide semiconductor chip shortage.

Financial crises affect the banks first, then everyone else. If there is no money, or the financial system collapses and we cannot use a credit card to buy something because the bank is bankrupt, not being able to buy something is no demand. No money is no demand.
 
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