1 question about the economy, 1 about things made in china

[Vermont woodsman]

What are your thoughts about how bad the economy is, no one seems to talk about it much. I still have a house in northern nj, where most 3 bedrooms are going for around 500,000. Now how are young people ever going to achieve the america dream, when most college grads start out making 27k. All i see latley are companys laying people off, and prices of goods and services going thru the roof. Also i notice most manufacturing is headed to china, it seemed this week no matter what i bought it was made in china. What are your thoughts about where this country is headed, and where the economy will be in 5 or 10 years?

 

[Walking Man]

Good Question.
It used to be that a man could support his family by himself.
No more are those days.

 

[Fisher of Men]

Well,

I think the economy is still bad. I have been blessed enough to have a job for the last 6 years. I'm making good money and my wife decided that it was a good idea to stay home when we had our first child. I agreed that it was a good idea. I think if people can afford to do that, it is the best thing for the child.

I have wanted to leave my job for a while now, but I really don't think that I could find another job right now in my field if I had to. That should say a lot seeing as I am in the Technology field.

Personally I think a lot of the problem is the fact that people are just living way outside of their means. They have cars that cost too much for what they make, they have larger homes that they need. They worry about keeping up with the "Joneses". It seems to me that it's a vanity thing. I have seen $45,000 cars parked in a parking lot where people live in an apartment. What the heck is that about? People should be driving a $15,000 car and moving into a house. I have also seen people living in a house and two $50,000 cars sitting in the driveway. Why would they do that? How about two $20,000 cars and put the rest of the money into paying off the house?

I don't think there is as much with the economy as there is with people living beyond their means.

My $.02

 

[S2nd]

I think the economy is a pretty simple explanation: We're spending a lot, with the same $$$ as before. I definitely agree with you, Fisher of Men, that many people are digging themselves in worse than need be.

Re: housing. I notice that a lot of people my age (mid-late 20's) either: 1) Don't want a house (tied down). 2) Have parents well off enough to buy them one. or 3) Buy a house 80 miles out that costs significantly less. So in a sense it works out, though it may not be the typical American dream.

Re: Production moving to China. If China floats the RMB, I don't know that production will move there as quickly. Whether it means production will increase here, some other country, or die altogether, I don't know. But regardless, it seems that the U.S. is becoming a service-based economy. That sucks for people who will be displaced (if it hasn't already begun), but if the shift goes full-blown, I think it'll be better that people not be disillusioned with false prospects.

 

[Bob W]

Personally, I'm making more more money than ever before, due to a career change. Property values here have gone up considerably over the past couple of years, but it's due to sellers' greed; there are tons of houses for sale, and they're on the market for years. We already owned anyway, but are dreading the associated appraisal jump.

Car prices are through the roof. An average-range high-quality car costs much more than ten years ago. '95 Cadillac Eldorado, $40,000; '05 comparible model, $78,000. 1995 Chrysler LeBaron, $17,000; 2005 Chrysler Crossfire, $35,000.

Sure, there are inexpensive cars available, but they suck.

Vehicle insurance, health care, transportation, taxes, education, utilities. All are necessities. All continuing to raise much faster than wages.

Five or ten years, more of the same. Less money left over for savings/retirement. Increased demand for cheaper imported items. More people doing without necessities. Fewer jobs, and fewer people qualified to fill them.

-Bob

 

[Mellow Chaos]

Five or ten years, more of the same. Less money left over for savings/retirement. Increased demand for cheaper imported items. More people doing without necessities. Fewer jobs, and fewer people qualified to fill them.

-Bob

Bob,

I've seen the tech companies do Reduction In Recruiting here in Austin to fulfill visa requirments, and it is amazing. Almost no American workers have the requisite combination of experience in .NET, SQL, Oracle, C++, etc. For this one position only requiring two years of .NET and C++, and three years of SQL Server 2000, there were only TWO qualified people who applied in a 30 day time frame. The foreign workers put their bloody noses to the grindstone and keep current on the latest technologies. If the American tech worker wants to compete, we are going to HAVE to keep up and keep our skills sharp. Just those three qualifications I mentioned above will probably have you a job in the 90k range within a month.

 

[Bob W]

Exactly my point. Three openings aren't many considering the huge number of unemployed people. But where to find educated workers... From overseas of course.

New Mexico is hiring schoolteachers from 'real' Mexico.

We have a similar situation where I work, only there are no technical qualifications and the pay is darn-good (especially for the area), and the job is easy. You just need a pulse, and take the boss' money. Still, most local workers completely flake out, go MIA, don't show up on time...

-Bob