Quote:
Originally Posted by Alfisti
I have been misunderstood in this thread. I am not disputing the auto market, prices are clearly high even if some softening has happened this pas month. What I cannot accept is this theory that suddenly everything we knew about economics is out the door.
Just because the impact of job losses was felt the most by entry level folks, doesn't mean everyone else is in vacuum. The lack of demand due to entry level job losses SHOULD see professional roles diminish as firms cut back due to lower sales, if this is not happening then demand must still be robust but how can this be possible amidst monumental unemployment numbers?
Now, apparently the unemployment rate has dropped to below 7% which at least explains the current situation but in March through June, surely it had to be the stimulus money keeping things afloat or we can just bin everything we thought we knew about economics.
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I agree on the stimulus money having an effect, I believe large. Government has dropped trillions of dollars into the economy. I also believe at some point we will have to pay for this "free" money. Short term it helps things and the ones that receive it on top of their never reduced pay are likely to spend it on things they don't need or wouldn't have purchased now.