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Originally Posted by The Demon
What America would be better off doing is decreasing outsourcing even at the expense of corporate profits. The economy fares much better when there is little unemployment because little unemployment=more manufacturing=more exports=less trade deficit=more consumers spending.
But we won't get rid of our debt as long as mainstream economists still exist with their keynesian bullshit. No, we'll end up defaulting on our debt, collapsing, and starting fresh.
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I agree generally with your first argument, altho I think you need to state the "how it's done" more clearly, cuz that's the trick. and your last sentence is more philosophical and editorial than practical. but who among us doesn't editorialize?
you may or may not have read what I said in posts to vendzilla, in which I suggested that the government should declare keeping a manufacturing base a national security priority, and take steps to make sure a next generation of manufacturing industries, and the infrastructure to support them, is built inside this country. I prposed funding this with money that is now spent on our military empire.
of course there are obvious problems with that. still, it has the advantage of being potentially doable, politically. it neatly yokes together nationalism and managed economy.
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economists are servants who say what they are paid to say, to justify the current business models of their time. blaming the economists is a pleasure, but economists are not the cause of any of this.
so, you need to be more explicit about what you actually mean, about what the _economy_, which is all of us collectively, is doing wrong.
and what can be done, practically speaking, about it.
right now, we are being beaten economically by other more managed economies that are arguably more keynesian than we are - so it's not centrally managed fiat currency alone which is doing us in.
thats the global question - will government managed economies defeat invisible hand economies?