Originally Posted by Seamus
Irwin Kellner who wrote the piece you're looking at, was also a victim of Bernie Madoff's ponzi scheme. Is that relevant? I'm not sure...but it's interesting isn't it?
Calling this a "service economy" is a bit like saying China makes fireworks. A lot of economists theorize that the service sector is the expected destination of rank and file labor that's unable to keep up with technology. But despite the loss of manufacturing jobs, we're still strong with research and technology. Infrastructure is hardly limited to road building, and anyone in their right mind who looks out the window traveling through any large city in America knows we have enormous challenges and a huge job ahead if we're going to do anything more with the millions of people trapped in urban blight behond simply relegate them to the scrap heap...and forfeit the economic benefits our own human resources are capable of producing in the process.
To solve the trade imbalance, we have to compete. To compete we have modernize this entire nation's economic infrastructure...not just roads, but transportation, communications, education, health care, etc...this is not a simple matter of giving people extra money in their tax rebate and sitting back to watch while the stock market rebounds in 3 months. That's insanely simplistic, utterly without any basis in how this is actually intended to work, and frankly...we both know this is a straw man.
The real point...is not whether it's going to work or not...nobody knows yet...but whether now that we're heading this direction, can we pull together as a country to get things done? Anybody who thinks there are easy solutions to this is simply deluding themselves. We're going to be in trouble for years...but we've also gone through other periods in US history that took extensive time to come out of, including the '30's era depression.
Frankly I think the real answers are being brewed in places that never make the press...read people like Daniel Pink who suggests innovation and the introduction of creative thinking is the new entrepreneurial energy that will drive an economy based on the right side of the brain instead of what China and India are able to do. The one thing we hold in this country that most don't...we reward risk...even to the point of ignoring failure. That theme went amuk in the Bush era with the crazy notion that greed could be trusted to police itself...but it doesn't change the fact that this is still a country of entrepreneurs and risk takers and always will be. Hence I disagree with the author's point that will change due to this stimulus bill.