January 2, 2011

Exports, Exports, Exports!

This recovery does not feel like one because for the average American his net worth has not recovered and in many cases it is still falling.

His nest egg continues to fall as home prices continue to slide. Our economy is so dependent on the consumer and the consumer, along with corporations, are focused on getting their balance sheet in order.instead of consuming. The individual who is working is not in the mood to run up debt and consume. He is more consumed about building wealth to offset the decline in in house values. He is thinking rationally.

This is why it is critical that we focus on improving our exports. The primary engine for economic growth, internal consumption, has shifted his priorities to savings. the solution is exports.

1 comment:

  1. Free trade may be in the best interests of transnational corporations but it does not help Americans and the American economy. Our elected officials should work for policies that benefit our country and its citizens. We need to regulate trade so that our exports are competitive and their exports/our imports are priced so as not to undercut American products. Our government should not tolerate a trade deficit that could be remedied by government action. Once again, the American government (of the people, etc) serves the rich not the rest. It is time for the government to control the excessive influence the rich have on government policy. When the government enables the greed of the rich, everyone else suffers needlessly.