The $64 Trillion Question (Part 1)
How can we get the American economy to prosper again?
June 22, 2010
That we seem to have avoided another Great Depression doesn?t mean our economy is anywhere near as strong as it should be. In fact, most indicators?from unemployment to private investment?prove quite the opposite. What can be done? How can we ensure the U.S. enjoys not merely a modest recovery but the kind of buoyant prosperity we saw in the decades after World War II and briefly in the 1990s? We put the question to few political economists and will run their thoughts over the next couple weeks. Here is the first entry, from Clyde Prestowitz, a former Reagan administration official and the president of the Economic Strategy Institute.
The Obama administration justifiably takes credit for preventing a 1930s style economic collapse and engineering a modest recovery from the Great Recession. But, as Obama heads to Toronto Friday for the G-20 summit, the administration needs to ask itself whether that?s enough to lay ?the foundations for a renewed American prosperity that is more sustainable, fairer for more of our citizens, and more competitive globally.?
In the past, the United States has pursued prosperity in two distinct ways. Over the last three decades, it has embraced globalization and sought to act as the administrative, marketing, and financial center of world capitalism as well as the consumer of last resort for the export giants in Asia. This path has led to enormous excess consumption at the expense of investment and production and to large, chronic trade deficits.
Click Here to read the the entire article in the New Republic.