Posted on 02-10-06
Quote from futures_shark:
In the past, the US was the most free economy in the world and the worlds entrepreneurs flocked here. As other countries embrace capitalism this flow will slow and maybe eventually stop. A disproportionate amount of wealth has been concentrated in the US in the last 100 years and now that it is being created elsewhere it seems as though the US is suffering (which it may be) but in the process the globe is prospering.
Posted on 02-13-06
Quote from futures_shark:
Until there is a constitutional amendment restricting spending and total debt there will never be true fiscal responsibility in Washington.
The problem right now is a conflict of interest. The government is running up enormous debts. We are just giving it all away in terms of economic advantage and momentum. America buys T-Shirts, China buys T-Bonds. But if the Chinese or (OPEC) or some of the these other foreign interests stop supporting our government deficit spending through bond purchases, the government will quickly become insolvent.
At the same time, you cannot continue to lower the standard of living for your people. You cannot take away their jobs and cut their pay, because then who will repay these debts (or simply maintain them with tax dollars to make the interest payments)?
Because you are correct when you say that we are helping other countries to prosper at the expense of our own people. That is the inevitable conclusion to global free trade. The President is right when he says that foreign workers cannot out-produce American workers. But they can produce at comparable levels at much, much cheaper prices. Production is one thing, but cost is quite another.
I would say that we cannot compete for price, but we can compete for value. But that will require some changes in not only the way we act, but also the way we think.
The simple fact is that the government is failing the people. It has started selling this country to the highest bidder. We are rapidly becoming slaves to debt while they chant freedom and liberty all the way to the shackles.
Would we be making these same decisions if we had a budget surplus? A trade surplus? Would we need excuses or convoluted economic theories if we were running surpluses?
Economists can dream up all the theories in the world, but a little common sense goes a long way. Street smarts will tell a person all they need to know. This government is exhibiting all the signs of a junkie. Denial, false promises, excuses, selling, borrowing, etc.