Today, the news is full of basic economics: employment (actually high unemployment), trade imbalances (more imports than exports), war expenses (mainly Afghanistan), and, news of our growing national debt. The big question is how can we improve our economy, now? Spend less, right?
Well…?
President Obama and his administration seem focused on the government’s role for creating growth through stimulation. For example, a jobs-program for spending on public works (building and fixing national roads, bridges, dams, etc.). This would get construction employment moving forward, which in turn means less unemployment and more workers spending their earnings for goods and services. Yes, sounds logical and it’s been done before with successful results.
Conservative groups suggest immediate government budget-cutting. Well, yes, we can cut back on many services — except that Americans like to have those services, especially the established social security, health, educational programs, etc. Also, consumers want to spend for themselves and they want to keep the advantages they have regarding basic security and infrastructure such as sanitary/sewer/water services, and garbage collection, just to name a few!
It is reported that other countries and economic blocks are also experiencing similar financial difficulties. Poor economies in Greece and Italy bring the whole European economy (euro) down; the Arab Spring is causing disruptions in economic ways that keep the price of oil high; and our competition with China for an equitable Yuan to Dollar rate. For example, some say that the present exchange rate (6.3Y to $1) favors China and that the U.S. has to get it lower in order for our domestic manufacturers to increase U.S.-based production.
Surely, American know-how and entrepreneurship are not dead. America needs a grand plan to turn the economy around. Have we lost the creativity, motivation and desire for better education and qualities-of-life which includes financial security?
BRUCE G. KAROLLE
Tamuning, Guam
