Thursday, April 24, 2008

Consumer Spending: Look Out Below - The Board - Editorials - Opinion - New York Times Blog

Consumer Spending: Look Out Below - The Board - Editorials - Opinion - New York Times Blog

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Wisconsin is an exporting state so it probably won't experience a recession due to the low value of the US dollar. Wisconsin avoided the 1990 recession for the same reason. Most of the data cited by this was national. The author of this article needs to go back to school and study economics before pretending to be an expert in this field.

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apparently anon forgot that in order to export anything we need a consumer. we can't continue to produce and sell a product with no buyer. with unemployment as high as it is in milwaukee, it seems you need to go back to school for a reality check!

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Anon #1 is right that a segment of Wisconsin’s manufacturing sector, firms like Bucyrus Erie and Joy Global, are prospering. The worldwide demand for mining equipment is high and the devaluation of the dollar has made their products relatively cheap.

But the dollars drop in value makes imports more expensive and effectively reduces the incomes of Wisconsin’s working people.

Wisconsin has also experienced the nation’s third highest number of mass layoffs. And firms as diverse as Harley Davidson and Midwest Express have announced additional furloughs. As a result, Wisconsin has a higher than average bankruptcy rate. This is hardly the recession proof picture that Anon #1 paints. Please see my latest blog for additional data.

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