There’s noone left holding an effective switch to the economy.
Dems don’t have them anymore - GOP hasn’t got it yet - the next 2 years the FEd will be the only institution that theoretically could change the desperate situation of the US - and the only means they have is print money.
The pres. was planning to force it down the throat of the country - invest in public schools and medicare - but will not be able to do it anymore - you didn’t want it - and there’s reason in not wanting it.
The GOP is planning to wait for the market to react (just don’t do anything safe public spending) - that’s old school american capitalism and it did work. Once.
Here’s the catch: The biggest piece of pork is in defense and cutting it down like the brits is probably something that will kill the rest of economy, education, science and strength of the US.
Furhter catch: There’s no industry that could run with the cheap money now available - ‘society of services’ doesn’t work in such a large scale as the US economy. Without an industrial base recovery by market powers (large pool of cheap labour, low consumption - lower prices) is impossible.
To bake more industry, ingredients are: Engineers and Production sites - but noone is going to invest in it - neither those who invest in their personal education (no money in pockets - no future in sight) - nor those who’d build production plants (much better alternatives).
Best alternative for the industry is to go abroad where there’s a lot of educated people - it’s not even cheaper elsewhere - HR has become awfully cheap in the US.
Education is, what’s missing - ivy league universities for exotic fruit scientists is not enough - the US needs bread and butter engineers and experts in broad scale.
It is called ‘human capital’ and will be as important as commodities in the future.
Very good info, thank you for posting.
There is some pork in defense spending, but the big bucks and the big spending growth in future budgets is in entitlement programs: social security, medicare, medicaid, Obamacare, etc. Our country has to reduce the expectations of citizens for entitlement programs and get the cost of those programs under control. Those are the programs where spending is growing rapidly and is out of control. Defense spending can be reduced significantly too and should also decline as our involvement in Iraq and Afghanistan winds down during this decade.