http://www.levy.org/pubs/sa_dec_08.pdf The US has to rebuild "actual manufacturing production" as part of it's "comeback mix".... A lower dollar will enable this prospective.... And is more likely to occur versus s a change in its political and tax systems.... Of course the question...." energy costs"....a "catch 22"....
Agree about "US HAS to rebuild actual manufacturing production". Disagree that there is ANY possibility of doing so without either (1) protectionist policies... which will really piss-off our trading partners, or (2) debasing the $USD to such a degree as to bankrupt or nearly bankrupt our citizenry. "Currency devaluation" always(?) gives the APPEARANCE of benefit in the short term but REAL damage and pain in the long term. The idea of "devaluation of $USD" is bantered back and forth all the time now. But to put us on a par with low-labor cost countries, the $USD would have to decline to LESS THAN 10!... currently, 80. When globalization brought 500 million peasants into the labor marketplace to compete for what used to be 20-30 million American manufacturing (and well paying service) jobs, we "shot off our own foot". We are GOING to get a lower $USD because our politicos are too greedy, short-sighted and stupid to do anything other than pursue the same policies which got us into this mess, but it will bring more bigger and problems than solutions.
........................................................................................... Agreed.....1000%.... Have followed Levy for many years.....They are a very conservative group for the most part....and have interesting viewpoints.... However....both you and I know that : A) A government in balance to its providers works far better than one out of balance.... B) Balance means that wealth is more broadly distributed....but by merit ....not welfare.....at least in a balanced manner.... There have been no proposals....and no studies by the academics....or other private think tanks....that have properly addressed the proper cure.....which is correct from every angle.... 1) Broad based tax .....based on consumption.....you use it.....you pay....you do not use it....you do not pay.... 10% C for the state base....with localized project elections and management....projects win by local vote and mandates.... 5% C goes to the Fed which is managed by state directed mandates....All other taxes will be declared illegal, eliminated.... The two party lobbyist advertising system clearly should be eliminated....And the FED RES should no longer exist.... 2) Better distribution of wealth....by merit.....Globalization is about distribution of wealth....This will not happen without a new worldwide securities exchange whereby one has a tax free, unencumbered venue to all world securities in the currency of choice....with a central wiki knowledge base.... 3) A better overall human experience..... Freedom from govt. gestapo tactics and big govt./corp. fascist dominance.... The mere enactment of 1) will bring about real freedom which none of the current population has ever experienced.... ............................................................................................ If the US/World would like to recover in the best/fastest manner possible.....the above has to be enacted pronto.... The current administration does not have a clue that it is actually "killing what is left of the US"....and the rest of the world.... A good man can be even more damaging than a crook when he enacts stupidity....
As long as China pegs its currency to the dollar, a dollar devaluation will be of limited help in boosting exports. We may be better off with a strong dollar which would encourage investment in US production for the US market.
Split the dollar 10 for 1 and now we can compete! min wage would effectively be 72 cents per hour. A job at GM would pay 3 dollars per hour. WOO HOO we are competitive again!
............................................................................. Understand your point..... .................................................................. Review each country's rates..... http://en.wikipedia.org/wiki/Tax_rates_around_the_world ..................................................................... Then think tax restructure....ie 10/5 C..... Much of the world's talent would flock to the proper domicile.... Bringing innovation, jobs, and those who desire personal freedom.... Who does not like "an ice cream economy" ....?
Obamanomics is all about "selling us on the merits of cannibalizing whatever we have left" instead of "growing a bigger pie for all to have the opportunity to share". When the history of this time is fully understood, Obama will be recognized as "doing for the USA what the Soviets did for Russia". He will be more infamous than Benedict Arnold.
.............................................................................................. B]Obamanomics is all about "selling us on the merits of cannibalizing whatever we have left" instead of "growing a bigger pie for all to have the opportunity to share". Perfectly stated.....and the further reduction of basic freedoms....
A big part of the long term solution is to stop drawing an artificial border between money-capital and labor-capital. The degree to which any country has access to US consumer markets should be directly linked to the degree the two countries allow free movement of labor across the borders.
Exactly! No doubt history will see Obama as the worst of all U.S. presidents. That will get Carter off the hook for his sins to America. If somehow he is elected for a second term, Obama will be best known for overseeing the end of America as a superpower.