The U.S. ECONOMY

The U.S. Economy

By T.S. Khanna, June 22, 2011.

Scientific advancement and political polarization have caused an enigma: technologically, there is a solution to every problem; politically, there is a problem to every solution.

Our political leaders have not been performing well. In the absence of any accountability, for decades, they have been ignoring the economics principles and running political economy seeking political returns, not economic returns. For them, being elected has been the end all; never mind the economy in a free fall.

Today’s U.S. economy has ingredients of political economy introduced by several leaders for their own benefits in the past. Now it lays bare in financial crisis.

Every leader blames the predecessor and under the facade of correcting the problem makes it worse by towing it in his/her own direction, with the support of gullible polarized voters.

There is a systemic flaw in democracy and its effects are evident in many countries.

Suggestions:

1. Identify the world market needs in goods and services;
2. Lure back the corporations through tax incentives to create jobs for the identified goods and services to compete in the world market;
3. Establish a Fair Wages Commission to keep the corporations from exploiting the labor and the labor from high jacking the corporation’s economy;
4. Improve the governmental system to suffocate political economy.

Yet, another challenge seems to be brewing: Reconciliation of the discordant elements of changing demographics, wealth, order, and liberty while protecting the wealth producing incentives in the face of changing technology.