Better Economic PR

I send this blog to the Reader because it is a relatively clear Picture of the decline of the Spanish economy, and the potential depth of the Crisis on Spain. I miss the lack of data on the Capitalization per Worker in Spain, but little else in the analysis. The later item gaining importance for comparisons of the Spanish economy with the other industrialized nations. The Reader should understand that the same Recession Worldwide affects separate nations differently, solely due to this level of Capitalization; the greater the level of Capitalization, the higher the loss of Investment Profits on that Capitalization. This represents a ridge-line of economic activity which has to be surpassed before the Economy must underwrite the loss of this Capitalization due to deterioration. This foreshortening of the Life expectancy of Capital due to production delay is one of the unexamined aspects of every Recession, and exhibits a binding Cost against previous Boom Profits.

That idea leads me to another contemplation: We Baby-Boomers may be facing our last Recession as labor, which means that We may be leaving the economic stage in an under-capitalized state, where our retirement coffers are disadvantaged from the outset. This will mean that We will not likely enter into full Retirement like our parents, but will retain Part-Time employment in which we continue to skew Employment models, while delivering a reduced level of performance. Refusal of Retirement will restrict the hierarchical rise of competent labor to upper management positions, and loss of experienced labor to greater opportunity. Baby-Boomers have always been a problem for Economists, and We will continue in that vane.

Here is an article which will give the Reader some idea of the troubles of retiring on the Downside. The 401(k) Plans are underperforming in the economic climate ( ratio of over 80%, rather than the usual 40%), and potential Retirees are already altering their Retirement schedules and Expenditure patterns; another circumstance which argues for a lousy Christmas season. It is rather bad form to disturb Those contemplating an End of a Work-life in the near future, a dragging long-term restriction of Consumer Demand from a most important segment; they possessing the aggregated assets to maintain Consumption through a Downturn, except when in fear of their economic future. It does not help that they are also the Class most able to defray Purchases until future Times, due to a recent upgrade on their Household equities. What I am trying to say is that Economists are frightening that group of Consumers, who they should be most interested in keeping calm. lgl