It has become abundantly clear that the United States economy is severely damaged. Worse yet, it is obvious that the assertions made by Wall Street, our elected representatives and even the President of the country are at best clever distortions and probably outright lies.
For instance, do Americans really believe that an economic recovery is underway because the Dow Jones Industrial Average has increased over 40% in the last year; or that the multitudes of economists are correct when they say” the worst is over”; or that the employment rate fell to 9.7% even as overall employment decreased; or that the mortgage and housing crisis has peaked? There is more, but you get the picture—the powers that be have elected to deceive the American public about the severity of the economic calamity.
In defense of those who decide our future, a case can be made for fudging numbers and altering reality in order to boost consumer confidence and thereby increase economic activity. Unfortunately, these geniuses forgot that Americans are tapped out – broke- busted and that their best cons and manipulations can’t get dollars from people who are insolvent. The bank account is kaput, the credit cards are maxed out and Joe and Mary spendthrift have raided the kid’s college fund to get through Christmas. So let the pollsters, pundits and politicians spin the facts as much as they want because no one can afford to listen, much less respond.
On a positive note, there is a relatively simple solution to the current economic impasse. And, even though simplicity is contrary to the contrived complexities of the global economy, sometimes a little common sense goes a long way in solving impossible problems.
So here is the theory of common sense economics. People need to work to make money to pay for food, clothes, housing and all the other goods that are normally consumed. Regrettably, there are fewer jobs because many of the products we use are imported from foreign countries. Fortunately, our leaders can change this scenario by rescinding unfair trade agreements and incentivizing Americans to produce for their own needs. The end result would be increased employment and a revitalized American economy.
As simple as this all appears, the idea of a country producing for its own needs represents a battleground for ideologies. It aligns the forces of globalism against the meager proponents of protectionism. It is the war of unfettered capitalism in conflict with the concept of independent nationalism. It is the determination of our future as a dependent world colony or our continuity as a sovereign country.
This is the first of a series of articles dealing with the need to change American economic policy. The next article will examine the depth of our present day problem.