The reason the more industrialized nations are experiencing an economic crisis is due to increasing unemployment brought on by the lack of demand for consumer products and also the excessive government taxation and increasing immigration. Attempts by national governments to adopt new internal policies that utilize tax revenue and borrowing to encourage businesses to expand and increase employment are not succeeding. It has become obvious that it is not possible to expand businesses when the demand for consumer products is declining.
The nations that have adopted an austere approach and decided to reduce government spending, in effect rejecting Keynesian economics, are doing quite well. However no nation will be able to return to the level of employment and manufacturing that they have experienced in the past until the demand for consumer products increases to former levels. This appears unlikely in the near term because of the amount of consumer spending that has occurred, the consumer attitude is "No thanks, I got one". Many believe that manufacturing employment cannot begin to increase until the consumers decide that the economy is going to recover and are willing to reenter the market place. Even then the demand will not be sufficient to restore the robust expanding economy of the past because of the enormous amount of past purchases and the minor number of new consumers entering the market.
The nations that have adopted an austere approach and decided to reduce government spending, in effect rejecting Keynesian economics, are doing quite well. However no nation will be able to return to the level of employment and manufacturing that they have experienced in the past until the demand for consumer products increases to former levels. This appears unlikely in the near term because of the amount of consumer spending that has occurred, the consumer attitude is "No thanks, I got one". Many believe that manufacturing employment cannot begin to increase until the consumers decide that the economy is going to recover and are willing to reenter the market place. Even then the demand will not be sufficient to restore the robust expanding economy of the past because of the enormous amount of past purchases and the minor number of new consumers entering the market.
Until recently the manufacturing capacity in United States had been expanding for over sixty years to meet the growing demands of a increasing number of new homeowners and construction workers for more consumer goods. The increase in manufacturing capacity also produced new jobs and a large affluent class of working people at all levels. This increase in the national employment base grew in response to the enormous increase in demand for consumer products created by the spending of the proceeds from financing home construction. This is the process that created the prosperity of the people in United States. The increase in prosperity and the spending on imports also helped many other countries to increase their employment base and product consumer class until the combined class of product consumers grew to over thirty percent of the total global population.
This process is not longer viable for the future of the more industrialized economies because of the limited demand for new products, the exporting of manufacturing resulting in increased unemployment, the increase in the number of workers due to immigration and the resulting welfare and unemployment benefits that are being paid by governments. To meet these demands governments have had to increase their budgets by borrowing and increasing taxes which has thrown countries into economic recessions that may turn into major depressions if a method for increasing consumer demands is not implemented..
Consumer needs and demands have now changed and are no longer sufficient to support an ongoing increase in global manufacturing employment at the previous rate which is what is required to maintain current levels of prosperity. In fact the existing global manufacturing capacity will exceed the current demands and future demands for some time because of the slowly expanding number of affluent product consumers and the reduction in their desires or needs. . What is required are new consumers: hundreds of millions of consumers, with needs and demands for new services and products.
It is impossible for the nations now experiencing serious unemployment problems to create millions of new product consumers internally and that is the reason the "stimulus" programs have failed. At this point in history it has now become mandatory that nations seek a global approach to solving national economic problems if they wish to energize their economy and create jobs. Recently it has been reported that of the approximately 6.8 billion people on this earth, 2.0 billion still live on less than $2.0 US per day and of those 1.0 billion live on less that $1.0 US per day. There is an additional 2.0 billion that live on a minimum income and are unable to save or improve their inhumane living conditions. Currently there are reports that global poverty is rising, not falling. Even in industrialized countries there are today over 200 million people capable of working that are unemployed.
This process is not longer viable for the future of the more industrialized economies because of the limited demand for new products, the exporting of manufacturing resulting in increased unemployment, the increase in the number of workers due to immigration and the resulting welfare and unemployment benefits that are being paid by governments. To meet these demands governments have had to increase their budgets by borrowing and increasing taxes which has thrown countries into economic recessions that may turn into major depressions if a method for increasing consumer demands is not implemented..
Consumer needs and demands have now changed and are no longer sufficient to support an ongoing increase in global manufacturing employment at the previous rate which is what is required to maintain current levels of prosperity. In fact the existing global manufacturing capacity will exceed the current demands and future demands for some time because of the slowly expanding number of affluent product consumers and the reduction in their desires or needs. . What is required are new consumers: hundreds of millions of consumers, with needs and demands for new services and products.
It is impossible for the nations now experiencing serious unemployment problems to create millions of new product consumers internally and that is the reason the "stimulus" programs have failed. At this point in history it has now become mandatory that nations seek a global approach to solving national economic problems if they wish to energize their economy and create jobs. Recently it has been reported that of the approximately 6.8 billion people on this earth, 2.0 billion still live on less than $2.0 US per day and of those 1.0 billion live on less that $1.0 US per day. There is an additional 2.0 billion that live on a minimum income and are unable to save or improve their inhumane living conditions. Currently there are reports that global poverty is rising, not falling. Even in industrialized countries there are today over 200 million people capable of working that are unemployed.
This blog is about how to create jobs that will increase employment in industrialized countries and emerging economies by increasing global demand for consumer products. Through a home building industry an entirely new group of product consumers is established when poverty is eradicated. Increasing demand for consumer products is required to increase employment worldwide. Read this blog and learn how the proposed global economic development strategy is a viable process that eradicates severe poverty through the establishment of a global home building industry for the emerging economies. Please feel free to comment and make suggestions.
Creating prosperity in emerging economies by the establishment of a home building industry for those who qualify for a new home loan is the key to the eradication of poverty. The strategy is based on the idea of loaning the money to the people who are working and the affluent which means that high quality homes and communities will be added to the cities not low end affordable housing. It also creates housing at the bottom of the economic scale for the lower income buyers by the Moving Up Effect. (See other posts) The increase in employment due to the construction creates demand for consumer products and additional jobs in small businesses and manufacturing which creates new buyers for homes..
Creating prosperity in emerging economies by the establishment of a home building industry for those who qualify for a new home loan is the key to the eradication of poverty. The strategy is based on the idea of loaning the money to the people who are working and the affluent which means that high quality homes and communities will be added to the cities not low end affordable housing. It also creates housing at the bottom of the economic scale for the lower income buyers by the Moving Up Effect. (See other posts) The increase in employment due to the construction creates demand for consumer products and additional jobs in small businesses and manufacturing which creates new buyers for homes..
Many of you who read the posts on this blog have indicated that you already understood that there were well over two billion people still living under very inhumane conditions with no real opportunity to ever find sufficient food or proper shelter for themselves and their children. You were also aware that many of them need medical attention and most do not have an adequate education if any. You now know that there is a global economic strategy that once adopted internationally would create economic freedom in participating countries enablng these people to become a key part of the eradication of severe poverty. With proper laws in place and financing they would have the opportunity to become employed and to invest in their own economy and become prosperous.
Now that you know there is a solution will you join us in this effort to eradicate severe poverty and create global prosperity? Are you concerned and passionate enough to give of your time and money to become a part of the growing effort to create a global home building industry? Now is your opportunity to join. You can comment on this blog or send emails to the author's web site expressing your area of interest. It is possible for you to join others in teaching the development strategy locally and asking others to become part of a local organization to insure proper laws are in place.
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