How to get out of this financial mess.

[Black Landlord]

kj wrote:
[quote=Dakota]
[quote=kj]
I like Swampy's idea since it's always bothered me it's cheaper to buy new things than fix the old. I feel like repair work is more fulfilling than sales anyway. kj.

I am not sure this is something that should bother you, at least for the following reasons. One of the signatures of 3rd world economies is that it is always far cheaper to repair things than to replace them. The reason is that human labor is cheap and production not nearly enough. This breeds poverty. Here, it is the opposite. Labor is not cheap and we have an abundance of production. I am not sure what the right balance is but the market place should find us an equilibrium.
That's interesting. I tend to focus on the wage disparity between us and China (for example) as being the reason we can afford to buy piles of disposable stuff. I don't know if that's a great way to be prosperous, because eventually we're going to run out of cheap labor to exploit. I'm also fond of the idea of buying really nice things, maintaining and keeping them for a long time, but I suppose it's just my preference, rather than a rational thing. kj.
Exactly. Our "prosperity" largely comes from the expliotation of third world labor (often children and sometimes even political prisoners.)
It is only sustainable as long as that disparity can be maintained.

[mattkime]

>>One of the signatures of 3rd world economies is that it is always far cheaper to repair things than to replace them. The reason is that human labor is cheap and production not nearly enough. This breeds poverty.

fixing things breeds poverty?

I'm not even sure how to respond to this.

[Mac1337]

mattkime wrote:
>>One of the signatures of 3rd world economies is that it is always far cheaper to repair things than to replace them. The reason is that human labor is cheap and production not nearly enough. This breeds poverty.

fixing things breeds poverty?

I'm not even sure how to respond to this.

Neither can I when you take a snippet out of my post and make a banner headline. So let me explain. It cost me $40 to have two wiper blades worth $10 replaced. That $40 provides a comfortable middle class life for my mechanic. Would you like it the other way around? Cheap labor, expensive parts. That is what we have in the 3rd world. At the labor rates we have, you can't afford to pay someone to repair stuff.

[Mac1337]

Black Landlord wrote:
Exactly. Our "prosperity" largely comes from the expliotation of third world labor (often children and sometimes even political prisoners.)
It is only sustainable as long as that disparity can be maintained.

I am sorry but this is not true. First, US prosperity did not begin with China. In the 50s, just about everything was made here and we were still the richest country on earth. Second, how are you helping third world workers by closing down their export factories? Are Cuban people better off because there are no factories exporting to the US? Sadly, it is either export jobs or nothing. The choice is easy for them.

[Black Landlord]

Dakota wrote:
[quote=Black Landlord]
Exactly. Our "prosperity" largely comes from the expliotation of third world labor (often children and sometimes even political prisoners.)
It is only sustainable as long as that disparity can be maintained.

I am sorry but this is not true.


Oh.


Never mind. Sorry.

[mattkime]

Dakota - I still don't understand your point about how its better not to repair things.

So you're paying $20 more to have the wipers installed for you. If you didn't, that $20 would be spent on something else. How is the world better with your windshield wiper mechanic?

[mikeylikesit]

Bill in NC wrote:
There is less and less creditors can do about borrowers who are unable or simply unwilling to service their debts.

Most credit card companies are about to find out just what the word "unsecured" means.

Once deregulated cc issuing companies became a big part of the problem. Their impetus over the last decade was to bring as many holders as possible up to the ceiling. To this end they allowed individuals to run up unhealthy balances and then laid traps that brought 5% introductory rates up to 24-32% creating an entire class of indentured debtors who can never realistically get out from under.

If fueling the economy truly mean consumer spending must go on and since most consumer spending is credit based then these predatory practices by the lending industry need to be brought under control. This has to happen immediately to have any chance of heading off an unstoppable spiral.

[JoeH]

The punitive rates have not stopped at 32%, Clark howard was doing a report the other day where he had received a report from a person getting a notice their rate was going up to over 50%.

[davester]

I can't believe someone pays a mechanic to change windshield wipers. At $20 for 5 minutes that works out to be $240/hr.

[Wags]

davester wrote:
I can't believe someone pays a mechanic to change windshield wipers. At $20 for 5 minutes that works out to be $240/hr.

There's an auto parts store near my house where the clerk will come out and put them on for free after you buy them at the regular price.