The Economy - We Need to Do Something Radically Different

In our previous post we discussed why the recovery has been so difficult. Our common “prescription” have failed to cause any positive change. This does not mean all is lost? Not at all. It does mean that we cannot be doing the same old things and expecting to get the results we always achieved. This is especially true when the world has changed and we believe it has changed. In such a case, we need to do something different to forge our own future.

• What kind of country are we now?


• What is the current socio-economic class structure do we have?


• Is this what we want? 


• Is this what it should be? 


• If not, and there will be negative responses to the above questions, what kind of class structure should the US have?


• More importantly what kind of economy will get us there?


• What do we have to do to get to that kind of economy? 

We are not talking about a planned economy. We know those do not work. We are talking about having a general plan and investing in our people and infrastructure to make that happen. We are talking about uncovering or creating new stimulus levers that will actually work.

If we do nothing but play with taxes and interest rates as if it were 1985, factory jobs will not magically appear. In our current scenario, they will only reappear when the US is the low cost wage producer in the world. We should be in pretty dismal shape if we wait until we are at that stage.

We have to acknowledge this New Normal. As a nation, we need to acknowledge that what used to work in regards to stimulating a recovery are not enough in this New Normal. We need to re-invent and re-invigorate ourselves. We need to NOT accept this New Normal and create a newer one much more to our liking. We are mystified why none of our civic or business leaders are advocating this.

A friend of ours, Guillermo Fernandez former President of Colgate Mexico, told us recently that what the US needs is a new Marshall Plan. The original Marshall Plan was the work of George Marshall the post World War II US Secretary of State. He led the creation of what was officially called the European Recovery Program. It began as humanitarian aid to war ravaged Europe and evolved into a program to modernize Europe’s industrial infrastructure and business practices. The program began in 1947 and ended in 1951.

We definitely need a new Marshall Plan. This time, however, it has to be focused on our own ravaged industrial base. We need to work on creating a new manufacturing base in this country based on business practices that are the best in the world. This would involve training our people for the jobs of the future and creating the environment where US businesses produce in the US.

No one is going to help us they way the original Marshall Plan did for Europe We are going to have to help ourselves.

From our blog to the ears of our President and Congress…

Comments

[Federal Posters]

For me i'm not happy what i receive of a low cost wage because even my self can't survive with this if you have family what would be the future? it is important to us to have an increase minimum wage what we work is what we receive.