3 Responses to “America at the Crossroad”

  1. jerseyguy says:

    I always find your essays interesting … I forgot how fast the debt is growing … it looks like it’s totally out of control and will lead to runaway inflation for us (or?) … I’m amazed that we could go from budget surplus to such a state in just 8 years … re your comments on education, here’s a clip you’ll likely find interesting: http://www.youtube.com/watch?v=pMcfrLYDm2U and you may want to join this wiki: http://shifthappens.wikispaces.com/

  2. Rich Braverman says:

    I enjoyed reading your overall views about present day America. I have a few brief comments: I agree that one of the key problems in the auto industry is the high cost of labor. Since these high costs came into being through bargaining between the companies and the union, the companies are suffering from their own mistakes. They should not have agreed with such generous benefits and wages. These mistakes have led to bankruptcy. I am opposed to helping the auto companies because it will only prolong the agony. They should file Chap.11, reorganize under court orders and emerge as smaller but more efficient companies.

    The problem in K-12 education is similar in that the system is held hostage to the teacher’s union. These fantastic wages and life-long benefits were achieved over the years by the union negotiating with government. The government gave them most of everything they wanted so again in this case the government is responsible for the problem. In addition the union has such great power that it can influence the government in return for massive campaign contributions. The result is that any suggestion to improve the quality of education is thwarted by the union in order for them to maintain their monopoly. They oppose charter schools and vouchers which have proved to be in some case better schools. They also oppose any innovation to improve things on the grounds that the teachers will suffer.font>

    The financial crisis was brought on by too much money and credit flooding the system. So now they are going to try and fix the problem by flooding the system with even more money and credit. It will not work. Inflation is coming–big time. The only solution is to endure a long recession and leave the economy to the free market. Thanks.

  3. Chih Kwan Chen says:

    American economy is at a crossroad. If it continues at the course that was started from the Reagan era called globalization, it will plunge into an abyss with no way of return, since that road calls for America to run ever larger trade deficits to spur its own consumption using money borrowed from foreigners in the form of trade deficit. The runaway trade deficits of US also means runaway trade surplus of China and other countries. The current global trouble is due to the shrinkage of US trade deficit that is restraining American consumption, bursting the bubble generated by the runaway trade deficit and reducing exports of Asian countries. For more details please see article 12 titled “Analyses of Recessions: from 1955 to 2008” posted on my website, http://www.forcastglobaleconomy.com.

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