McCain and Obama are falling back on the same old, tired, worn-out approaches to improving wages and increasing jobs. McCain adheres to the ineffective “trickle-down” approach. What was once an effective strategy under Reagan, when lower taxes on the wealthy actually boosted spending in the American economy, has evolved into “trickle-out,” where lower taxes on the wealthy and on corporations now boost spending for foreign goods and investment in “emerging economies.” It simply doesn’t work any more.
Obama’s no better. His primary campaign promises to attack the trade deficit have already been abandoned in favor of worn out Democratic approaches – boosting the minimum wage and boosting government spending. Obama does propose boosting spending on alternative energy, but that will do little for jobs or wages. It’ll create a few research jobs but, when it comes to implementing solutions, the manufacturing will all be done overseas.
These guys just don’t get it. We’re not in just another business down-turn cycle. America has been stripped of its wealth by the trade deficit and there’s little left to give. Our foreign benefactors now see us as a poor place to invest and are cutting off the easy credit. Yet, we continue to pump away $2 billion per day to fund the global trade welfare state. These problems are immune to the solutions of these advocates of failed 18th century economic theories.
Lacking a president with the vision, wisdom and guts to turn us away from blind trade, the U.S. is doomed to continue its headlong plunge toward becoming the world’s first “undeveloping country.”