The US is out of demand. Workers are spent out. Thus, there's no need to increase output, because nobody has the money to buy it. The US has huge excess manufacturing capacity, thousands of malls which could handle more traffic ("there's always parking at Sears", a rather pathetic ad), and services which could handle more business. There's a glut of capital, plenty of available unemployed or underemployed workers, no shortage of commercial real estate outside of a few cities, but no way to use it.
The CEO of WalMart has mentioned this. They have a direct view into the spent-out economy - same-store sales data. Sales decline each week after payday, then recover after payday. Sales move to necessities later in the month.
That's why companies aren't investing in capacity.
The CEO of WalMart has mentioned this. They have a direct view into the spent-out economy - same-store sales data. Sales decline each week after payday, then recover after payday. Sales move to necessities later in the month.
That's why companies aren't investing in capacity.