April 13, 2013

We Squabble As World Speeds By

Letting free markets cure their own ills would be like my Dad letting my brother and I continue fighting and thinking everything will work out. The problem with this philosophy is one may end up needlessly seriously injured. Intervention by government should not be a bad thing. The key obviously is to do it right and I agree this is not always the case.

What gets in the way is politics. It is easy for politicians to scream for a stimulus when the economy is weak. They are too afraid of losing votes by demanding debt be paid down when times improve. This happens on both sides of the aisle.

Today we are too focused inward and not taking into account what is happening in the rest of the world. It is expected that in 17 years China will have the largest economy. By 2030, China will have 200 million college graduates—more than the entire U.S. workforce. We should be investing in our future now by upgrading our infrastructure, improving our education system and doing more research and development. Yes it is true these actions will create more jobs today, but more importantly it will put us in a better position to compete in the future.

Yes, we need to gain better control over our debt, but there is no reason to cut off the noses of our childrens future by doing it over a 10 year period rather than 15 or 20 years. We have time. If we don't act soon your grandkids and mine will not be able to say they live in the wealthiest country in the world that has the strongest military and is the most respected globally.

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