At 10:51 5-5-01 -0500, Dan Minette wrote:
>Also, can you give me an example of a historic proof that we cannot have
>economic growth for the foreseeable future?
From what I read and hear, the economic boom in the US is almost history
already. Stock markets around the world react quickly to economic news from
the US; only last Friday stock prices went down when the latest
unemployment figures from the US were announced. Over the last months, many
funds on the stock market (particularly companies in the high-tech sector)
have seen a dramatic drop in value. Recently, prices dropped so fast in
only a few days on the Dutch stock market that experts called it a "mini
crash". Most funds are still recovering from that event.
To me, all this indicates that the next recession (complete with stock
market crash) is near. Personally, I expect it to happen within two years.
But that's just my non-expert opinion, of course.
>But, we are talking about massive effects, especially now after the US and
>Europe have used up virtually all of their slack. Multinationals would
>close factories in the US and Europe to open factories in 3rd World
>countries. Unemployment would shoot up at first, and then continue to creep
>up because there would be no chance for growth.
You may recall that JDG and I discussed this recently. I agree with you
that moving factories to the Third World would be bad for the European and
US economies; John however is convinced that it would be *good* for the
economy if we did that...
Jeroen
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