Granted it’s a metals company. But this is a trend which is quietly spreading around the world.
There was a time when a bachelors degree was something pretty special. It was unusual for people to have one. Though still only 30% of the adult American population has a 4 year degree that is a lot more than in years past. More prosperous years.
Graduate degrees are also more common. Practically a whole generation has tried to wait out the Great Recession in college.
Abeconomics is a Hail Mary throw if there ever was one. Though many will argue otherwise there is a limit to “money printing.” Are we reaching the point where the system just starts eating itself in Japan? Very possible. If an increase in the sales tax meant to help pay for the gigantic Japanese debt does this to the Japanese economy they face a bit of a problem to say the least. Raise taxes, reduce revenue. Looks like Tokyo is way over the Laffer Curve. (And it appears to have done it with a sales tax, not even an income tax increase.) But even getting below the curve by reducing taxes is unlikely to help much because the debt black hole must be financed somehow.
Absolutely true. It’s been happening for quite a while actually. I can remember a friend talking to me in the early 2000s and he was seriously thinking about moving to Kansas because the cost of living was so much lower. “Do you have any idea what a $250,000 house looks like out there? It’s a palace.” Read More
The Department of Defense has been given a free ride pretty much since World War II. The Military Industrial Complex which President Eisenhower warned about in his farewell address (former 5 star general Eisenhower) is very real and it has grown and grown taking up ever more of the American economy. The contractors and the services are awash in taxpayer money. Your money. And much of this money isn’t being used wisely. It is going to hyper expensive parts procurement (see above), and for programs in sub-Saharan Africa, and jets which catch fire on the flight line (The F-35) and Lord knows what else.
Think of debt as a tower. It can be built up and built up, and if juiced by central banks can be built up even more. But eventually the “tower” becomes too heavy and it collapses on itself in chaos and pain.
Credit is artificially cheap thanks to the Federal Reserve’s unwise experiments of the last 6 years. This cheap credit has filtered down to the consumer to some extent. But now prices are rising (also thanks to the Fed) and this cheap credit is being used by consumers just to make ends meet – again. (While at the same time feeding the rise in the price of consumer goods.)