Sunday, November 29, 2009

Consume

So "The Economy" in this country is generally measured by the Gross Domestic Product. And roughly 70% of the economy is driven by retail sales. I heard this morning on KGMI that one fifth of all retail sales are generated on Black Friday (an even I fortunately missed). And although all consumption is not solely retail sales, spending on retail goods plays a pick part in the composition of consumption.

I heard that the anticipated results of this year's numbers point to a 1/2% increase in retail sales, year-over-year. I guess this is good from a capitalist standpoint (the GDP needs to increase yearly in perpetuity), I find it surprising that these numbers do not fare better, as the United States becomes more of a service economy. Production, by definition, includes producing, designing, marketing, distribution of a good; everything else tends to fall into the Consumption bucket.

So my musings on a Sunday morning evoke these thoughts:
- As the production base continues to erode in this country, more and more of the economy will be based upon consumption versus production.
- Production jobs (ie, trades) historically have paid significantly higher than service jobs, hence the conitnued decline in wages and the consequent taxes.
- Sickness, natural disasters, litigation, inflation, etc. all drive the GDP. Is this a healthy metric for our country as a whole?

These are all things I can ponder (as I see a patch of blus sky) this afternoon as I do some chores around the house and garage.

1 comment:

Natarajaprabhu said...

High paying jobs are most important in the current economic situation.
Most of the companies in India and there are lots of job openings in various indian cities, which provides high salary.