I don’t think the American economy will recover until we change the minset of the American people. Americans seem to believe that being the wealthiest economy on earth is a “given” and that if the country is wealthy then it should “take care” of all of its citizens. There simply is no sense of economic responsibilty with most Americans but instead a there’s sense of economic privledge.
Another thing that Americans need to realize is that Keynesian economics simply doesn’t work.
Until the mindset on both of those issues is changed, America will continue its decline into irrelevancy. Its a sad reality but a reality nonetheless.
Shoot Paul Krugman for starters.:-)