There have been plenty of people on these boards espousing different economic theories. The right leading seem to detest government intervention and support the rule of the ‘free market’ . They frequently complain about US government support and handouts and decry the stimulus and US government attempts to create jobs. Now the stimulus money is running out.
For me the critical issue for the health of the American economy is the number of people working and their incomes to support a healthy domestic economy. What are the conservative’s approach to create jobs? What do you think about free market policies that are easily gamed by countries such as China nytimes.com/2010/06/25/opini … aulkrugman .
Quote from above article
'The effect of this currency undervaluation is twofold: it makes Chinese goods artificially cheap to foreigners, while making foreign goods artificially expensive to the Chinese. That is, it’s as if China were simultaneously subsidizing its exports and placing a protective tariff on its imports.
Isn’t it obvious that having a fixed ideology is a major weakness in any negotiation or battle. China has a free market because of the WTO and non-tariffs agreement?
To my mind this economic failure is a failure of holistic and long-term thinkng by corporations and those in leadership (e.g. war mongering without thinking about the cost first), sheer lack of common sense (continous outsourcing of manufacturing base, the backbone of any economy) and also a lack of patriotism by American employers and companies. Patriotism became bringing ‘freedom’ to Iraq and chasing Osama Bin Laden, where is the patriotism at home?
Americans forgot, just like the British, why their country was so prosperous and strong and instead went for the quick money of mergers and acquisitions, constant cost-cutting and off-shoring of manufacturing. The quick buck of making it cheap in Asia but selling it at the same price as they ever did at home. The seemingly easy money from the finance world of upleveraging and selling dodgy bonds and stocks to overseas buyers. Productivity gains became the buzz word but too much productivity at the expense of workers means less jobs, less income, lower quality of life and in the end a much weaker country.
So whether you agree with my assessment or not how would you get Americans back to work and stop this recession becoming a depression?