The American economy has been a victim of anemic economic growth despite massive tax cuts (that may have caused irreparable damage to long-term health of the country, despite the argument that we would be in worse shape if taxes were not cut). It is, therefore, interesting to hear secretary Snow observing that solving America's problem is also somehow the responsibility of other nations, particularly those in Europe. It was not too long that we blamed Japan (and there were few voices blaming China) for our economic ills.
iProceed approach to driving growth in America
iProceed approach to driving growth in America
- Stop blaming other nations. While we need to collaborate with other nations to make the world a better place for trade and business, other nations will act in their self-interest and we need to do the same. What that means is that we will have to get our own house in order to see meaningful growth.
- As France, Germany, Japan, and many other tigers of the past like Singapore, South Korea, Malaysia, Taiwan, etc. already know very well, we might very well be a mature economy now and may have to content ourselves with less than 5% GDP growth rates as far as the eye can see. Or in other words, we need to get out of the US and look for business opportunities overseas. (Related article: Latest economic indicators point to maturing of American economy)
- The budget deficit could be a serious impediment to growth since it limits our abilities to spend where we can get the highest impact. As we are already seeing, the cash that companies now have on their balance sheets is definitely not being invested in the US economy. It is either going overseas or is just sitting there. We need to improve the investment climate in America.