Economic Issues
by Bradley Voight on 07/14/12The economy is on nearly everyone's mind these days. Recycling and scrapping metal have a lot to do with the economy on several fronts. First off metals, particularly base metals, are the main raw materials of our economy. An easy way to get a barometer on the global economy is to look at base metal prices to get an idea of the demand for raw materials. Low prices mean low demand/high supply and high prices mean high demand/low supply. Secondly, more people scrap during high unemployment cycles. Finally, many recycling and scrapping businesses crop up in sluggish economic times.
We will continue to cover the economy leading up to the election this fall. It is my personal opinion that the world wide debt load is bigger than any one man or party can handle at this time. The sheer size of the debt owed by developed economies will take years to unwind. I believe that we could just be in the first stages of a prolonged downturn of ten years or more.
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