I am concerned ..and it is not about the election

[TheCoxwain]

I think Obama will be sworn in fair and square ( believe me - there are more sensible people than you think there are)

Rather , it is monumental scale of our economic problems that he will have to contend with. I am no economist - but here are some facts to deal with..


1) The Industrial base started shifted out of USA in 1970's primarily due to demand for more stuff for a lower price...

2) We were told that we are now a 'Service' oriented economy and we did not need to 'make' stuff. We changed from a creditor nation to a debtor nation as a result of #1. We basically stopped creating real wealth.

3) Everything else that has followed - Dotcom/Financial services boom has really been a mirage- We have been on net- borrowing stuff to buy cars and houses.

We are now feeling the effects of gravity - it is like the Tom & Jerry cartoon where Tom walks of a cliff and continues walking in the air until he realizes that there is no ground beneath him.


I am not a pessimist. I think the problem above can be solved IF the right socio-economic policies are in place- But this is going to be a LONG HAUL; No quick fixes here - We need to start creating real wealth here. I really believe the that era of unfettered capitalism is in its "sunset years"- and some form of a more socially-just free market society(a real contradiction of terms!!!) will slowly take its place.. There is much deliberation to be done just to temper this debate. We precisely need to stop the forces that will benefit from the Naomi Kline's shock doctrine theory who will without doubt try to shove policies down our throat ( Suddenly the $700 billion smells very fishy).

I believe that Obama is a thinker and will without doubt set in motion the right initiatives. But do we, as a nation, have the stomach and the attention span needed for a much more serious policy changes - We have a lot of growing up to do - and despite all the sensible people who will put Obama in office - we dont seem to have much aptitude/time to solve our long term problems - and that concerns me.

[ingac70]

1. Removing tax breaks...

to manufacturers that go, or already are, overseas will help bring back some real wealth creation to the nation.

I know the wages are cheap overseas, but it isn't cheap to ship most of the stuff, and taking away the tax breaks will insure more jobs stay here.

[TheCoxwain]

2. That will hurt American businesses and help XYZ foriegn company..

There are no simple answers ...

If Nike has a factory abroad and is forced to close it because of taxes/shipping costs - who benefits? We will have to pay more for a shoe ( probably for good if it is american made) but it is more likely that foreign entity will take Nike's place..

I know protectionism is BAD WORD .. and I do not support trade barriers - but I do support a more organic approach to consumption - we consume what is produced locally. That requires cultural shifts and calls for some personal sacrifice - Are we upto it? I dont know..

[ingac70]

4. Either you want wealth in this nation or you don't.

No special tax breaks for US companies that have gone offshore.

[WinkyDink]

8. When the rich have to give back, someone always claims it's "bad". We're losing jobs NOW.

[Raineyb]

13. Why would we necessarily pay more for the sneaker in your scenario

When Nike stopped making shoes here they didn't lower the prices they merely increased their profits. The incentive to push profits at the expense of the worker needs to be curbed. It should not be considered reasonable to expect 20% growth every year. The tax code should reflect those values. Certainly a tariff on imports to make the costs to manufacture overseas equal to the costs to manufacture domestically would be a welcomed change of pace. Call it protectionism if you want but that's how countries became prosperous in the first place. And continuing the policies of Reagan is a sure way to continue the downward spiral of this country.

Regards

[Blue Meany]

3. Let the value of the dollar drop..

as it is bound to do if we keep borrowing. Then American labor will be more competitive. But we will all have to consume less and there are some very hard times ahead.

[TheCoxwain]

5. There are problems here too...

If American dollar was not the fiat currency of the world ( you need dollars for everything - but mostly for buying Crude Oil) - American dollar would have dropped like a stone years ago. All the countries earning dollars ( China and Petro-Consortium nations) plow it right back to us in form of treasury notes that continues to prop the dollar. The basic point is that the normal market forces are seriously impeded in our case.

[Overseas]

6. The urgent push to develop wind, solar and improve mass transit

will create a lot more jobs in the USA which will help. Can't wait for the era of high speed trains from SF to LA. And SF to Portland and on up to Canada.

Instituting fairer taxation will go a long way toward rebuilding the economy. Returning to income tax rates of the Reagan era would be a great first step. Removing the cap on taxable income and letting us collect taxes on the income over $200K is what I want. Executive bonuses would also be part of taxable income. Stock options would be taxable upon redemption. Executive compensation would not be a deductible business expense.

We need to push for single payer national health insurance for all. Senator Obama has to keep the insurance component alive for a while, so as not to disrupt the economic powers that be. We need to push him when he becomes president to move on forward to fully funded national health like most other industrialized countries have.

Once Democrats usher in national health insurance, that will solidify Democrats' popularity for years to come. We need to push all our legislators once President Obama's term begins.

[stillcool]

7. I don't believe that..

the industrial base was shifted due to 'demand for more stuff at a cheaper price'. As with everything else in this country that shift was due to the bottom line, and our government's primary focus of advancing American Business interests both here at home, and around the globe.

[marco86]

9. The answer lies in alternative energy

You are dead on about dot com and financial (housing)


This is a time to throw massive money at wind, solar, hybrid, tide, etc. It needs to be done with an eye, scratch that two eyes on american jobs. It will put people to work, and help trade deficit, consumer spending etc. It needs to be a huge investment but the dividends to America will justify it. The only way out of the current economic situation is to have another basis for a boom that we can export if we nail it.

Nothing will get better without cration of massive amounts of jobs and soon. Does anyone see another route to get there?

[nam78_two]

10. "We have a lot of growing up to do "

Indeed...
There is going to be no quick fix and no easy fix. I think we need to start rethinking about the direction we are going in and build a real, not bubble based economy. I see alternative energy as the next big growth industry and that could end up saving our asses. It is excellent in that it addresses our energy needs, the environment and we do still have an edge in science and technology (though India and China are catching up, which is why right now it is especially important to have a pro-science administration in charge).
Research and technology funding always takes a hit under Republican adminstrations-historically too this is true and doesn't apply only to the Bushies. But with a sane administration that understands the importance of science and technology, we have a much better shot.

[abumbyanyothername]

11. Let's look at the basics

1) Our farmers already produce 700 more calories of food per person per day than we need. Hence, our #1 national health issue is obesity. We have plentiful food and could have even more plentiful food as more and more of our population shifts to a more intelligent and more sustainable vegan diet. This is a huge advantage and ultimately will shield us from any catastrophe like the Great Depression/Dust Bowl.

2) We have WAY more energy than we could ever consume in the form of wind and solar. We just need to solve some storage/demand/transmission problems. Once the load evening and storage issues are resolved, we can again become the energy capital of the world. This will lead to an accumulation of wealth that will dazzle everyone with its rapidity. We spend $2Billion/day on foreign energy. Spending that money at home will make a HUGE difference.

3) Our auto manufacturers are just going to have to take the lead on alternative powered cars or go BK.

4) I would encourage Wal-Mart and other retailers to set up "built in America" sub-stores. I know that I would pay more if I knew the money was recirculating in this nation. Anyone old enough to remember the "Look For The Union Label" campaign?

5) We should think about putting together a transportation infrastructure project on the magnitude of Eisenhower's Interstate Highway System. The project needs to combine the best features of mass transit with the best features of the individual auto. Have small individual "pods" that join up into long trains. The pods could break off for individual transportation over the last mile (or 5, or 10, or 50). The existing Interstate Highway System can provide the backbone for this project.

6) The construction industry needs to refocus itself on green building/retrofitting. Energy conserved is way cheaper than energy discovered, refined, transported and consumed. Amory Lovins of the Rocky Mountain Institute has a wonderful concept called the "negawatt" -- a watt of energy conserved.

7) Americans generally need to refocus off of "standard of living" (keeping up with the Joneses) and onto "quality of life" (the simple life). There is a wonderful joke about the New York investment banker who vacations in Mexico and buys some fish from a local fisherman. The fish is so wonderfully fresh and delicious that the investment banker spins a tall yarn about how the fisherman could become a multi-national power in the fish industry. All along the way, the humble fisherman asks the banker, "why?" At the end of the story, the answer is so you relax and enjoy time with your family. The fisherman (who spends an hour or two each day fishing and selling) responds, "but that's what I do now."

[TheCoxwain]

12. Lovely Post ... This is the kind of thinking that we need to get out of the hole

Lots of common sense solutions aided by clutter-free thinking