Posted 4 years ago on Nov. 2, 2013, 9:14 p.m. EST by JackHall
This content is user submitted and not an official statement
Two opposing ideas driving the economy: Making Money vs Making Stuff.
After WWII the USA was the only industrial nation whose factories were still intact. Because America was the only industrial power the US dollar became the reserve currency for world trade. When foreign countries bought our products they had to use US dollars.
While the products were made in the USA the dollar grew stronger. US labor had to be paid. Our products backed the US dollar. This was because The US made a lot of stuff for the world. Made in the USA meant the products were the best. The American working class made stuff that made money.
Building houses is a solution for both unemployment and economic growth. There is a housing shortage. This leads to inflated rents and housing prices such as a 2 bedroom coop priced at $500K
While trillions of dollars are in circulation there aren't many clues as to how much a dollar is worth. $11.90 will buy a pack of cigarettes in New York; two packs, $4.99 for a pack, in Idaho. It's the same dollar.
Should a 3 BR house be built for $90K, $190K or $290K? The Government should take the responsibility of creating and regulating a national housing program supplying inexpensive modular prefabricated homes so the country can start making stuff on a large scale again to create houses and home appliances and furnishings by Americans for Americans. Surplus houses could be exported.
Making Money Today
The Federal Reserve controls trillions of dollars.