What's wrong with the American Economy?

[PBzeer]

What do you feel is the main problem with the state of the American Economy? (Yes, there's more than one thing, just what in your opinion is the main one) Please give a brief reason why you believe this is your choice.

For myself, it's crony capitalism.

Why? There's a number of things. First of all, it creates legislation and regulations for the benefit of some, not all. Second, it usually socializes risk, while privatizing gain. Third, it tilts the playing field between the larger and smaller businesses, in favor of the larger. And lastly, it inhibits the growth of new, sustainable businesses.

How do we solve this problem? First, we have to start electing people who won't give in to the temptation of cash for favors. Second, we need to simplify the tax code for individuals and corporations to get rid of the tens of thousands of pages of loopholes currently in it. And third, review all laws and regulations to ensure they give equal treatment to all, and that their benefits are worth their cost.

Whether you agree or disagree doesn't matter right now. Let's get the problems out there first, then we can talk about whether they are problems and if so, how we can fix them. This thread is meant for serious discussion. If you want to call people names, impugn their intelligence, or otherwise belittle what anyone has to say, go elsewhere.

[erps]

I agree with your assessment. I also think we have unreal expectations on what our standard of living should be. I remember thinking way back in high school that it was inevitable for our standard of living to drop until the rest of the world caught up. We have managed to maintain our standard of living compared to our parents, but we're doing it with two incomes instead of one. I see the next generation coming up wanting everything "now" which took the previous generation a few decades to accumulate. I don't see a fix for it. It's more about adjusting to the new reality.

[Harborless]

I was sort of under the impression from other topics and postings that you felt all was hunky dory, i'm glad I was mistaken!

I also agree with your points but your scope fails to capture the multitude of problems that have resulted in our stagnated and weak economy.

The problem is truly epic- A proverbial needle in a haystack. Unfortunately, in this GLOBAL marketplace, the only way to truly restrengthen ourselves is long term investment in education, technology, and industry. We have to become more self sufficient. We need a breakthrough in energy that will allow us to stop depending so much on foreign powers. We need to rebuild and build new factories. We need to train a more advanced work force. We need to re invest in America. Lets start out the foundations (Industry, Technology, Education) and work outwards.

[PBzeer]

No Harborless, I don't think everything is hunky dory. I just don't complain about the symptoms, I'm more concerned with the disease. That's why I started this thread.

For instance (for those who might post here), Wall St getting bailed out and then getting away with it is a symptom of crony capitalism. It's not the disease. And so it is with much of what people are "angry" about, symptoms, not the disease.

[knothead]

Originally Posted by PBzeer

No Harborless, I don't think everything is hunky dory. I just don't complain about the symptoms, I'm more concerned with the disease. That's why I started this thread.

For instance (for those who might post here), Wall St getting bailed out and then getting away with it is a symptom of crony capitalism. It's not the disease. And so it is with much of what people are "angry" about, symptoms, not the disease.

Glad to see you're coming around PB. I've been saying for a long time now that the problem is simple. Greed. On all levels. That's the disease. Everything else is just a symptom.
Simplistic? Yeah, I know. Still true though. It's been true since a fellow a long time ago said something along the lines of "The love of money is the root of all evil".
Love of money=Greed.
What's the fix? Spiritual (not religious) awakening I guess. I'm not holding my breath. We live in a world where some people believe that greed is a positive thing. We live in a world where some people refuse to see the interconnectedness of all the life on this planet. Sacrificing the environment for short term monetary gains and convenience.
I don't think that there is much we can do except try some of the many good ideas out there that might help to end some of the corruption, but it's been said that you can't legislate morality. It's about all we can do though until people change their own priorities.

[Rick486]

Very good post and I personally agree with pretty much what you say. But in addition I believe that 20 years or so of anti-growth federal and state activism on regulations dealing with taxes, business operations, the environment, illegal immigration, debt management, interest rates, and housing loans to name the largest contributors, finally converged to result in:
-massive shifting of manufacturing overseas to avoid non-competitiveness caused by environmental and workplace regulation costs;
-bursting of the housing bubble leading to contraction in consumer spending;
-outrageous risk taking in the financial industry driven by low returns and a stagnant stock market for the last 10 years leading to the credit crisis of 2008-2009
-reduced risk taking by entrepreneurs and existing businesses stinting growth; and
-reductions in consumer spending driving demand down and discouraging growth.
The enormous ship that is the US economy has tremendous momentum. Let's not forget that we are talking a $14.5 Trillion economy. So it is resilient and driven by the engine of innovation for the last 200 years. It has taken 20 years to put us where we are today and it will take some number of years to reverse the damage, if it actually can be reversed, and I for one believe it can. But it will take leadership on both the political and industrial sides that we certainly do not see today. The big government that has been created and is worshiped by the major political parties must be reduced in size and scope to roll back the stifling policies of the last 20 years. We can only hope that there are leaders out there who will come forward soon.

[jackdale]

Originally Posted by Rick486

-massive shifting of manufacturing overseas to avoid non-competitiveness caused by environmental and workplace regulation costs;

I do not think that you want Chinese working conditions



or environmental conditions.

[Bene505]

What do you feel is the main problem with the state of the American Economy?

I'l like to add as a problem that we give away the store. For instance, when I studied trade and tariffs there was one example that hit home. At the time, other countries put tariffs on things coming into their country from the U.S., and presumably elsewhere. The other country got the extra money from their trade restriction.

But in this example, we gave a certain limited number of imports to the other country, and the other country auctioned the rights off to their exporters. The other country got the extra money from our trade restriction.

Maybe this is s symptom of having prostitute legislators that can be bought. Or maybe it's a symptom of having a revolving door between regulators and the companies they regulate, I don't know. It is a stupid way of proceeding; we give away the store.

Regards,
Brad

[Bene505]

OK, here's another one.

The U.S. doesn't have it's own currency. Not really. We use a currency that we borrow from a corporation and we pay that corporation interest for using it. It's crazy and insane.

(And if you are a conspiracy nut, Presidents who try to do something about the, get assisinated. Lincoln, for instance could not get the money-controllers to pump more money into circulation, to pay for the Civil War. So he started the U.S. issuing it's own money.)

That's another example of giving away the store.

Regards,
Brad

[WouldaShoulda]

Originally Posted by knothead

I don't think that there is much we can do except try some of the many good ideas out there that might help to end some of the corruption, but it's been said that you can't legislate morality. It's about all we can do though until people change their own priorities.

Here's what all Americans can do;

Finish High School.

Stay sober.

Go to work every day ON TIME.

Live within your means.

Don't have children before you are married.

Don't have more children than you can afford.

You will have a decent life.