Wednesday, September 08, 2010
Amazingly, The Truth In WaPo
He left out the drag on production involved in certain excesses in our environmental regulation scheme and the energy situation, but the rest is quite solid. It's the trade deficit, stupid. That's the structural problem.
Yes! You want scary though?
The trade deficit is a drop in the bucket compared to the cumulative trade deficit. We keep sending dollars out each day and they keep accumulating somewhere that isn't here. The grand total is far more disturbing than the individual pieces.
Home Equity vs. The Trade Deficit
The U.S. Trade Deficit and the “New Economy”
Pardon my language, but this "New Economy" kind of sucks.
The Internet is good though. I love how it remembers what was said and when. It offers plenty of snarking opportunities.
I concur with the latter for foreign policy reasons (I prefer business competition to open warfare), but it requires that we do something about the former.
We need to build 100 nuclear power plants over the next 15-20 years. More construction and more jobs right here. And cheap, secure electricity for the future.
We need to produce our own cement,lumber, iron, steel, and more. But the enviro-whackos continually fight against those things.
We could build more boats here in the Puget Sound area but the enviromental regs are too restrictive.
The government here in Washington State has managed to drive a big share of Boeing's manufacturing to other states or overseas. Crazy!
With greedy government and know nothing enviro-whackos standing in the way, things will not get better.
Yes, taxes and regulation are certainly contributing but the overvalued dollar has been destroying American industry since it created the Rust Belt 3 decades ago.
All he’s saying is that the way to create jobs is to produce more. The column is a lot of words wrapped around a tautology.
If, as he says, it doesn’t matter which side of the border the new output is consumed on, then why does the trade deficit matter?
What happens if we buy only domestic energy? Half or two-thirds of the trade deficit goes away. But that’s not going to lead to millions of new careers in energy production.
The problem is not the reading on any macro dial. People have to learn how to create value for each other. All the impediments to creating such value are the product of people fiddling with those economic dials. You can’t outsmart the economy.
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