Professor Elam

The iconic Apple iPod is everywhere and being solid state, they work great. And that is the problem, does anyone need a new one, or even another one?  I suspect that product is now already in mature phase, in these markets and with over one hundred million sold, it does not take long.

I suspect we have across the board an issue of just too much stuff, as George Carlin used to say.  As I write an auto dealer on CNBC  is suggesting the government send everyone a check that buys a car.  Govt  used to give you  an investment tax credit as a business for buying a vehicle, same thing, the existing inventory of cars and trucks on lots for sale is just too much.

We now have mini warehouses just to store 'stuff'' for which we have no immediate use. If annual car sales have fallen to 10 M from 16M, we probably have way too much excess capacity in cars as well as airlines by the way. Cars last a lot longer than they used to, I have 110 K miles on my Escape and have never had an actual repair, maintenance of course but no actual repairs. I do not need a new car, I fully expect to get 200 K miles before I consider a replacement.

I suspect over the next year lots of folks will decide they do not need as much stuff, iPods, cars, airline tickets, or big homes. As I say the government had various tax incentives when the Dems ran congres to sell pickukps, we may see a return to such incentives again. Of course a tax credit is only of value if one owes taxes……that would require making a profit to being with.