Wednesday, November 17, 2021

Economics in the USA... Causes and Solutions

Challenges to our economy started at least 50 years ago when factories in the USA started to move from north to south, then to south of the border, then to the far east. 


There are enormous container ships waiting, sitting off our west coast, because American businesses, trying to save costs, moved manufacturing largely to mainland China.


The same management decided, "just in the nick of time," could continue to reduce costs; wound up with little, to no, inventory on hand when supply chains are hit by extraordinary challenges (e.g., a global pandemic).  They, intentionally, built-in a lack of flexibility/alternatives to deal with unforeseen economic problems.


When looking for the cause of the current inflationary pressures on the economy you need look no further than company/corporate management.  The destructive approach to economics was enabled by the ludicrous, supply-side, economics of the Republicans and the problematic policies of neo-liberal Democrats.


Democrats have recently remembered, and started to return to, the Keynesian methods and processes that were key to the New Deal and the Great Society. When the Democrats boosted economic possibilities for the most needy 40% of Americans (the American Rescue Plan Act of 2021) it was done with no cooperation/assistance/votes from Qpublicans.  When attempting to do more (The Infrastructure and Jobs Act) Democrats checked across the aisle to find only 13 Qpublican votes in the House and 19 Qpublican votes in the Senate.


The current economic problems, inflation included, have roots that are, most often, not political...  When government assistance, Keynesian solutions, are proposed it is oft exclusively from the Democrats...  When assistance, or a counter proposal, is sought from across the aisle...  Little, to nothing, happens...


Keynesian solutions are underway, in spite of the 2 well purchased, neo-liberal (corporate owned), Democrats' obfuscation. More can be done if the elections of 2022, and beyond, give the Democrats (plus the two Independents) the larger majorities needed in the US House and Senate. More Democratic controlled, state governments are potentially even more important.


Without the massive and consistent efforts of the voting public our democratic republic, and the extraordinary economy it has enabled, could be gone forever.


 

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