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Months ago we posted commentary on the how the quick fix and short game vs the long game. Let's see how things stack up and what challenges lie ahead.

Which way is the economy going?
  • Very slowly up, after all pundits everywhere were predicting or fearing a new great depression.
  • The crisis that ensued arose from poorly regulated banking practices that supported a housing boom coupled with uncompetitive manufacturing led by automobiles. Not only has Detroit rebounded, but housing is now a generally an undervalued commodity compared with the rest of the developed world. Each can only get better.
  • Exports are moving up on a broader base. Not only is an emerging China buying more from us, but will consume more American high-tech goods in the future. They have become out third-largest trading partner, up some 50% over five years ago.
  • Oil imports are nearing 1995 levels. Natural gas production and vast new reserves are likewise easing the energy markets. Trade deficits have reduced by a third in five years.
  • Internet connectivity is not only changing the world, it too is boosting the economy by by expanding expanding exports.

Where Are The Pitfalls??
  • Reacting too slowly or over-reacting.
  • Pushing too hard on trade barriers and immigration would have negative affects.
  • Failing to repair national infrastructure, especially in transportation.


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