Two Economies

One economy we have. Another is the one we want. Knowing the difference between the two will save us a lot of grief.

The current economy has much potential in it. That potential remains built up demand with some built up supply. As the economy comes back from the pandemic, there will be imbalances in the equation of supply and demand. Buyers will cause prices to rise until supply returns to proper levels to satisfy demand. Money is not in question for many people; the pandemic allowed them to cut costs and save money. They learned to dampen their needs and their wants. They settled into a routine that kept old buying habits quiet. With the ebbing pandemic, society is opening up to old activities. Buying sprees are evident.

How to handle this? Continue to dampen your demand and purchasing. Prices will resume a fair balance in time. wait it out.

Now, the economy we have suffers from many plagues. The opposite of these plagues is where we will find the new economy we want. Here are some thoughts:

·        Our labor pool lost jobs more from obsolescence than the pandemic. The two happened at the same time but are not related.

·        The labor pool is willing to work but needs retraining to do the new work that has been emerging for the last several years.

·        The infrastructure is not in good condition, and much of it is not located where it needs to be. Plus, technology is now a major portion of infrastructure without our realizing it. It must be enabled and supported. Publicly supported and funded.

·        Product and service demand worldwide is huge. Those markets remain to be supplied. American products and services remain of high quality and innovative. They are in demand. We must supply that demand or lose the market. Other nations will respond if we don’t. Russia cannot; China has size issues that plague it. The US is nimble and can adjust. But the labor pool must be supported by employers if they want skills and talents to do the work.

·        Low cost products make temporary markets, not long lasting ones. Invest in the future products and services. That is where the reward and profits are.

·        Focusing on national issues only insulates us from where the future resides; outside of our own nation. The global village is a real place. Do not hide from it.

·        America First will make America Last over time. The consequences are too great to play with. Step up and do the necessary work to make good things happen wherever the demand is.

·        A global village protects all its interests. Peace comes from that reality.

·        Military regimes waste resources and harm themselves more than winning victories. Sad but true. Historical fact.

If we know what we want for an economy, we must build it. The resources are there. The need is there. The smarts are there. All we need is the doing of it. Why is this a political issue?

Only fools make politics instead of progress.

June 8, 2021