Economist - The Comeback Kid

[Chuckanut]

Here is an article in the Economist magazine that suggests the US economy is remaking itself and getting ready for the future. Apparently, the doom-and-gloom crowd are wrong again.

The American economy: Comeback kid | The Economist

[Notmuchlonger]

First time Ive seen Uncle Sam with pasties.

[NW-Bound]

Auntie Sam?

[haha]

Quote:

Originally Posted by Chuckanut Apparently, the doom-and-gloom crowd are wrong again. The American economy: Comeback kid | The Economist

Of course, an article in the Economist is definitive proof that all is well.

[LakeTravis]

Hard to give credibility to an article that can't spell "annualized" correctly:

"..growth probably slipped below an annualised 2% in the first half of this year.."

[NW-Bound]

Umm... Both forms are OK, though the "z" version appears more popular in the US.

I still cannot get over the pasties.

[East Texas]

Yep - the pasties are a little creepy.

[Danmar]

Let's hope they are right. The Economist has often been wrong though alhough they do sound more intelligent in being so.

[ziggy29]

Quote:

Originally Posted by NW-Bound Auntie Sam?

Samantha.

[MBAustin]

Interesting article, Chuckanut - thanks for sharing. I tend to agree that we aren't as bad off as we think, and that dealing with public infrastructure is going to be critical in the next decades.

[walkinwood]

Thanks for sharing.

The article linked to in the 2nd paragraph is worth reading too.

In both articles, they point out the risks. One is that these new industries make tremendous profits, pay their workers very well, but employ only a few highly skilled ones. So they don't help a lot with unemployment and add to the wealth inequality.

[Midpack]

Enjoyed the article thanks for sharing. And if (when?) America does what The Economist suggests (below), I'm optimistic too, we'll see...

Quote:

What should the next president do to generate muscle in this new economy? First, do no harm. Not driving the economy over the fiscal cliff would be a start: instead, settle on a credible long-term deficit plan that includes both tax rises and cuts to entitlement programmes. There are other madnesses brewing. Some Democrats want to restrict exports of natural gas to hold down the price for domestic consumers—a brilliant strategy to discourage domestic investment and production. A braver Mr Obama would expedite approval of gas exports. For his part, Mr Romney should back off his promise to brand China a currency manipulator, an invitation to a trade war. Second, the next president should fix America’s ramshackle public services. Even the most productive start-ups cannot help an economy held back by dilapidated roads, the world’s most expensive health system, underachieving union-dominated schools and a Byzantine immigration system that deprives companies of the world’s best talent. Focus on those things, Mr Obama and Mr Romney, and you will be surprised what America’s private sector can do for itself.

[haha]

I also appreciate any article that is linked.

It is valid nevertheless to critique these articles. A similar article might have been written in 350 CE about the Roman Empire- if it stops being governed by psychotics, if its own citizens fight some of their wars instead of mercenaries, if there were not a constant need for more territory to give more food and more conquests to do the work that citizens were no longer capable or willing to do, if there were no powerful barbarians in the North who were getting more powerful all the time, if...-

Ha

[RISP]

Quote:

powerful barbarians in the North

I don't think it's fair to blame Canada.

[MichaelB]

The Economist special on the US was interesting and reminds us of our strengths.

Many countries have overcome more difficult obstacles. The problems facing the US are mostly domestic and man-made, so we neither need the help of others nor rocket scientists to address them. As the song said, we are all prisoners of our own device.

[Danmar]

Quote:

Originally Posted by RISP I don't think it's fair to blame Canada.

good one. We have faith in the US. At some point, not sure we are there yet, you will get your act together.

[rescueme]

Quote:

Originally Posted by RISP I don't think it's fair to blame Canada.

Sure it is. They need to "share the wealth" with their poor cousins "down south" ...

Canadians are now richer than Americans - Bottom Line

[NW-Bound]

Oh man! Need more of them rich snowbirds to come down and buy our unused and overbuilt houses.

[FUEGO]

Quote:

Originally Posted by NW-Bound Oh man! Need more of them rich snowbirds to come down and buy our unused and overbuilt houses.

I am a little surprised that we don't see more Europeans and Canadians descending en masse to the US of A. Fairly decent housing in many lower or moderate cost areas can be purchased for around $100k USD or a little more. And from what I have seen, food, gas, electronics, etc are generally more reasonably priced here vs. Europe.

I would suspect the perceptions of the US might keep some out, as would the financial burden of health care here in the US. And not sure about immigration and visa opportunities for our friends to the north and east over the pond.

[samclem]

Quote:

Originally Posted by MichaelB The problems facing the US are mostly domestic and man-made . . .

I think that's why the problems are proving intractable. We've shown ourselves to be pretty good at meeting external challenges and those posed by nature--it's easy to muster the needed national will to fix things imposed on us from outside. But if the problems are internal, and especially if they are a by-product of the same processes that have served us well in other circumstances--that's a tougher nut. I'm optimistic, but I still don't see the needed homeostatic mechanism that normally lurks in the offing to help us out.