Tuesday, June 14, 2011

RT America: Douglas Campbell- 'Stock Markets Plunge: Global Economy Headed For Lost Decade?'

Source:RT America- "RT is funded in whole or in part by the Russian Government." Wikipedia

"Is Italy becoming the next casualty of the eurozone debt crisis? Italian 10-year bond yields today went past the 7% threshold markets consider unsustainable. Stock markets plunged. Are investors cutting their losses and just looking to pillage whatever's left of these national economies? Meanwhile, could the global economy be headed for a lost decade? We speak to Doug Campbell former staff economist on President Obama's Council of Economic Advisors." 

America has three huge issues that it has to deal with in order to have a strong economy again and not go through what Japan has in the last twenty years where the economy there hasn't grown at all and even contracted. 

Crisis probably isn't the right term for technical purposes, but there are definitely issues that we definitely have to deal with in order to rebuild our economy and make sure its strong in the future. If you want include public education you could call it four issues that America has to deal with to rebuild our economy. But I relate that with our jobs crisis, doesn't matter if we are able to produce good jobs in America again, if we can't produce the workers in this country to take those jobs. 

The three issues that I've already laid out are, economic growth we do not have nearly enough of it right now to produce solid job growth. Job growth which is related to economic growth, without solid economic growth we can't have good job growth. And the third is our looming deficit and debt crisis that if we don't address soon, will eat up most of our Federal tax revenue just to pay the interest of the deficit and debt, to pay all of our creditors that are currently holding our 14T$ national debt. 

And the deficit and debt will not only eat away at a lot of the Federal budget to pay the interest of the debt. But the Federal Government will also be competing with the private sector to borrow money. Meaning less loans for the private sector and the biggest problem is that the economic growth, job growth, and deficit and debt all need to be addressed at the same time. 

But since America is such a great country with the world's reserve currency, we have the ability to address all three of these issues at the same time. My approach to doing this as I laid out, is first putting people back to work by rebuilding our infrastructure with a National Infrastructure Bank, creating a national energy policy that moves America to energy independence by promoting our own natural resources. Reforming our public education system by giving parents and students choice in where they get their education and rewarding quality teachers and removing low-performing teachers. And expanding college access so more qualified students can go to college. 

And then addressing our Federal deficit and debt, through reforming the Federal Government, cutting back on things we shouldn't spend tax revenue on and tax increases on people that can afford to pay more in taxes as well as overall tax reform that eliminates corporate welfare and taxes more things at Lower Rates. 

America doesn't have to lose two decades we don't have to become Japan which is still a great country but hasn't expanded its economy in twenty years. It's not a given that America will lose another decade economically, but it's not a given that we won't either. It's up to us to determine whether we have a strong economy in the future or not by the policy's we enact and how we reform or eliminate things that no longer work or hasn't ever worked.

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