# Economic Upturn



## rjmoses (Apr 4, 2010)

Many, many years ago, I took a couple of basic Economics courses (Macro and Micro) in Chicago. The instructor worked downtown in the Loop. One day in the Macro class, he said that he judged the future of the economy by the number of new holes in the ground in the Loop.

He described how the real estate developers borrowed money to finance the construction of the skyscrapers (holes in the ground), This money was paid to the construction workers, the concrete and steel suppliers, the carpenters, the plumbers, etc. They, in turn, bought new refrigerators, cars, houses, clothes for their families, paid their bills, took vacations, etc. The people the construction workers bought from, in turn, bought stuff, paid bills, etc.

He said that the money passed down seven times before disappearing out of the economy (think taxes used for non-producing services).

Yesterday, I was driving through a section of Missouri that had been laid out for new construction around 2006. It has been for sale since then. I counted eight new business sights under construction.

Then, today, I read in Progressive Farmer that farmers are optimistic about the future. (I take that to mean more optimistic than normal, because you have to be basically optimistic in this business anyway.)

Between the new construction and the PF article, I'm thinking the future is about to turn around.

Ralph


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## ozarkian (Dec 11, 2010)

In this world of daily unhappy news, I like your optimism.


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## Vol (Jul 5, 2009)

I hope your right Ralph....for two reasons. One, I would like to see folks that have suffered greatly for the last ten years get a little joy back in their lives....and two, I hope the economy eventually thrives under Trump so that I can tell my liberal acquaintances to go crawl in a hole and be quiet.

Regards, Mike


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