“Ain’t Got the Money…”
Posted by SCapozzola on July 16th, 2008
David Lynch reports the straight facts today in a USA Today article entitled “Economic pain: ‘Payback’ for debt-fueled growth?” He quotes Federal Reserve Chairman Ben Bernanke who observes that “The economy continues to face numerous difficulties.”
Lynch does a good job of itemizing these woes: bank troubles, housing troubles, General Motors troubles…
One point that needs to be made, though, is that the U.S. trade deficit has contributed to much of the country’s mounting domestic debt. Not only is $2 billion leaving the U.S. each day, but good-paying jobs are being eroded at a steady rate. The resulting debt creates a drag on GDP.
Simply put: Either the money stays, or it leaves.
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