Today we ask the mineshaft: we know what’s wrong with America, why can’t we fix these problems?
Summary: Today we look at one dimension of the future of the America. We ask the mineshaft why we have such irrational economic policies, and yet seem unable to change them. It’s “ask the community” day, from the German “Gemeinschaft” (see Wikipedia). Post your answer in the comments.
Amidst strong competition, are our economic policies the most delusional among the major nations? Massive deficits sustain the economy and produce complacency that prevents structural reform — yet leave few traces of useful benefits behind (most of the spending passes away like last winter’s snow).
Meanwhile Fed policy does little but produce profits for Wall Street. Like the QE3 announced this week, few economists even bother to discuss if it will have real-world effects beyond driving risk markets high and slightly lowering mortgage interest rates.
While many Americans recognize the irrationality of our economic policies, we seem unable to change course. Why?
Neither our leaders nor citizens appear able to reconcile the conflicting political and economic forces at work in America. Despite our overall stronger position than our peers (better demographics, our major problems with solutions tested by other nations — details here), we’ve locked ourselves in what might prove self-destructive policies.
More specifically, what happens in November? In February I forecast that a weakening economy would lead to a win by Romney and his team of competent political engineers. Both the weak economy and his political competency now seem questionable assumptions. The economy is weakening too slowly; Romney’s campaign appears to be imploding under his team’s almost daily errors.
Sketch out your diagnosis in the comments. And, if have one, a proposed cure for this aspect of America’s problems.
For More Information
For all posts about solutions for America, see this FM Reference Page.
About the future of America:
- Beginning of the end of the Republic’s solvency. Soon come the first steps to a reformed regime – or a new regime., 14 August 2009
- Fear not! America will not fall due to its citizens’ imprudence. We’ve found a sure solution., 16 April 2012
- America is rich and powerful because we can borrow. Will this debt build a stronger America?, 5 June 2012
- The X-51A is $300 million of fun. Can we spend our money smarter and build a better future?, 18 August 2012