The BBC posted a rather thought provoking article this morning concerning the state of the US, this election and changing beliefs about the very future of our economic strength and dominance.a rather thought provoking article
In short, has the American Dream faded ? Are we currently in a boom-bust cycle or are we seeing, just like the restructuring of the auto-industry from SUV to gas sipper, a restructuring of American's economic prominance ?
Lets look at the issues at play here :
- Steady erosion of the dollar is reducing our purchasing power increasing the cost of imports, including oil.
- The constant drumbeat of US corporations moving large sections of their workforce to overseas providers (outsourcing and movement of manufacturing base), lowering incomes and job availability here in the US.
- Terrible inflation in the key areas of education & tuition , health care costs, and basic necessities.
- A chronic lack of investment in public infrastructure including schools, roads, railways, effective airports and air traffic control. Inefficient and outdated utilities and grid infrastructure. An urban and suburban plan (or lack thereof) which does not match the realities of the cost of travel in today's world.
- A government model which believes growth comes from spending less, not more.
- A free market system which increases the value of shares for companies that shut and shutter rather than companies that grow and expand.
A recession is one thing, this seems to go much much deeper. Barack is going to have his work cut out for him.