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Structural Issues?

  • #1
  • First Post: Sep 20, 2006 5:48pm Sep 20, 2006 5:48pm
What are "structural issues"?

The term implies there are other issues. anyone know them?
  • #2
  • Sep 20, 2006 5:59pm Sep 20, 2006 5:59pm
To me "structural issues" means there's a problem with the way something is built. What's this in reference to?
How you act is more important than how you feel.
  • #3
  • Sep 20, 2006 6:25pm Sep 20, 2006 6:25pm
If you're talking about the trade balance deficit america is running at the moment what it essentially means is that America must find some way of financing this deficit. If it can't it means that America's economy might have a 'structural' deficit (in laymans terms it will collaspe). Normally its financed by money inflows into america as foreigners buy dollars to invest in american companies, buy goods etc. But the last Tic report (a report that monitors the amount of 'inflows' into america was only 33bln. The trade balance was something like -68bln. So some economists are questioning the 'structural' support america has to continue with such a deficit.

I think this is what you meant??

*edit* I should add that the TIC report previously was somewhere like 70bln.
  • #4
  • Sep 20, 2006 6:29pm Sep 20, 2006 6:29pm
I was reading an article that said, "Today's high rate of European unemployment reflects structural problems rather than inadequate demand."

My idea of a structural issue would be zoning regulations that restrict new building permits or housing contstruction. is this right? i'm not sure on this. i interpret "structure" in this context to be similar to corporate structure with VP finance having control over accounting. if there were impediments to that control, i assume that would be called a corporate structural problem.


  • #5
  • Sep 20, 2006 6:38pm Sep 20, 2006 6:38pm
Ah what that means is basically a mismatch between the type of labour available and the type of labour required.

eg. 3 million forex traders loose all their money on the forex market and become unemployed. The only jobs available are industrial jobs but the forex traders dont know how to do these. This is structural unemployment...Technically there is available labour to fill the jobs but its not the correct labour force.
  • #6
  • Sep 20, 2006 6:39pm Sep 20, 2006 6:39pm
Quoting Money Talks
If you're talking about the trade balance deficit america is running at the moment what it essentially means is that America must find some way of financing this deficit. If it can't it means that America's economy might have a 'structural' deficit (in laymans terms it will collaspe). Normally its financed by money inflows into america as foreigners buy dollars to invest in american companies, buy goods etc. But the last Tic report (a report that monitors the amount of 'inflows' into america was only 33bln. The trade balance was something like -68bln. So some economists are questioning the 'structural' support america has to continue with such a deficit.

I think this is what you meant??

*edit* I should add that the TIC report previously was somewhere like 70bln.
thanks for the reply. how is america supposed to continue? america is a heavy net importer of consumer goods. i suppose if they increased their exports it would balance things out? continued dollar weakness would encourage europe to import more goods from america.

i know america imports most of it's electronic goods from asia and also cars from asia. what does it import from europe?

how about military equipment? that's something that usa is dominant in. do you suppose the military industry is huge? i recently found out the military is america's largest employer. probably is a big component of the nfp data.
  • #7
  • Sep 20, 2006 6:43pm Sep 20, 2006 6:43pm
"Today's high rate of European unemployment reflects structural problems rather than inadequate demand."

It means Europe is in economic stagnation because thanks to their welfare state utopia they have too many people riding in the wagon and not enough pulling it.

*ducks*

How you act is more important than how you feel.
  • #8
  • Sep 20, 2006 6:47pm Sep 20, 2006 6:47pm
http://www.google.ie/search?hl=en&lr...ition&ct=title

Link gives definitions of structural unemployment. As regards the trade deficit boy are you opening a can of worms here

Yup, if they exported more, that would fix it. Or if people (non-USA'ers bought more dollar bonds, stocks etc.
  • #9
  • Sep 20, 2006 6:48pm Sep 20, 2006 6:48pm
Quoting Warmagus
"

*ducks*
...

  • #10
  • Sep 20, 2006 6:50pm Sep 20, 2006 6:50pm
Quoting Money Talks
http://www.google.ie/search?hl=en&lr...ition&ct=title

Link gives definitions of structural unemployment. As regards the trade deficit boy are you opening a can of worms here

Yup, if they exported more, that would fix it. Or if people (non-USA'ers bought more dollar bonds, stocks etc.
you sound like you have discussed this before. i think i saw one of your thread on fundamentals. is this topic discussed there?
  • #11
  • Sep 20, 2006 6:52pm Sep 20, 2006 6:52pm
no, I haven't...Its too complex, haven't seen anyone around that wants to debate it
  • #12
  • Sep 20, 2006 11:57pm Sep 20, 2006 11:57pm
Quoting Money Talks
no, I haven't...Its too complex, haven't seen anyone around that wants to debate it
Start a thread and I'll beat you up on it tomorrow.
  • #13
  • Last Post: Sep 21, 2006 11:36am Sep 21, 2006 11:36am
'Just exporting more' is a complex process that involves more than just choosin countries and sending goods to them, it involves making prducts for a price at which foriegn demand for them is high, on a scale that approaches 70 B per year. It means the right products, in terms of being easier for the type of capital (production facilities and machinery) and labour that is available and well priced in the U.S. (or wherever).
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