What would happen if………..

If we did not have the Euro crisis, what would happen if…. If we did not have the Wall Street induced financial crisis 3 years ago, what would happen if….If we did not have persistent unemployment, what would happen if…..IF we did not have the fastest growth of neighborhood poverty in the US, what would happen if…. There are a lot of “ifs” above and it is nice to contemplate what it would be like if. The issue remains are these “ifs” the cause or the effect. We have been conditioned to think of our economic problems as cyclical and if we wait long enough, they will go away with the upturn in the business cycle. What if the “ifs” are not cyclical in nature? What if, these ifs, are actually
structural in nature? This may be one we cannot wait out. We are in a
deflationary period, not unlike Japan since the 1990’s, and no one really knows
what to do about it anymore nor do they know what to do about it in Japan. We
know a lot of our jobs have been either exported or replaced by robotics. We
know that deficits do matter and the burgeoning debt both political parties
have imposed on us makes a difference. Lowering rates to add supply only can do
so much. There is another side to the supply-demand equation which is obviously
demand. Weakness of demand is the key issue. And that will not change until
there is an increase in consumer confidence. There is money out there to be
spent and people can afford to do so….but where is the demand????? It is being
overshadowed by the lack of consumer confidence. What can be done? First of
all, the government can get their act in order on revenues and spending. Also,
come to grips with Medicare, social security and if it needs to be improved
Obama Care, not abandon it. That is the government’s fiscal job. Secondly, we
need to develop a plan/policy for infrastructure improvements, a solid energy
policy and yes, a manufacturing policy. We have none of this and should do so.
Why? Politics of course. Thirdly, we need a leader. A true leader. One that can
say we are doing the right things here as a nation by doing the above and
telling businesses and consumers, it is OK to do your thing. Get to it. Here is
where we are going…..I have the vision…..let’s be true to our roots and be
Americans and lead the way. What if…….

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