Any economy so dependent on a service sector and consumer spending will, in due course, begin to feed upon itself in an unsustainable manner as the manufacturing and energy sectors (which produce the real wealth of a nation) continue to decline. That deterioration is here for all Americans to see, as job creation, per capita income, and personal wealth have begun a long-term downward spiral.
Many economists proffer the argument that the move to an overwhelmingly service-based economy is the natural course of events in a highly industrialized and technologically advanced society. However, this fails to take into account the factors of world economic development and the same rapid advancement in technology that allow services, which have no intrinsic uniqueness, to be performed by fewer employees and, in many cases, in other countries with lower labor costs.
The United States, if it is to continue as a world economic and military force, must begin to restructure its economy. A program to re-industrialize the nation and to not only become energy independent, but also an energy exporter has to be a priority. The country should have as its goal to increase the manufacturing and energy sector of the economy to 30% to 35% instead of the current 21%.
Exactly what Peter Schiff has been lecturing for years. Democrats believe government taxing and spending (socialism) is the engine of the economy, but Republicans think all investments are the same and that temporarly equity bubbles promoted by low interest rates and targeted tax cuts are real economic growth. But both are wrong. We cant import (and borrow) everything forever.
Just watch what China is doing luring private companies to China while expanding their economy to other nations, all while we send troops and money we dont have. They can fund huge military growth because they have a $$$ plan.
unless you define 'forever' as TEOTWAWKI...