yesterday on Morning Joe two Economists were discussing what is wrong with where we are.
The Keyensian(demand side,or stimulus ,guy) was pointing to income inequality as the biggest issue,people making less money can afford less goods and services and therefore there is no road out until that is addressed.
The Supply side(free markets,less regulation) guy was pointing to the shifting of our economy away from manufacturing and into tech and inovation as the catalyst of the problem and without some kind of economic surge(real estate,.com,oil)things will remain stagnant as less and less people are engaged in the new engine of our economic security.
In listening to them I recalled something I was told many years ago regarding this dynamic which seems to indficate that they are both right to a certain degree.
In a free market, the most efficient producer of a good or service should be the 'contract winner" so to speak.For many years it was us, but we transitioned away from manufacturing not because Buissness leaders were evil tyrants trying to crush the american worker, but because the market dictated where production was most effective.
In saying that Im not absolving Buisness from the Keyensian perspective, they should to an extent make allownaces for the american worker ,if only to maintain a strong economy for themselves.
But where we failed is deciding how to transition our workforce into the new model for our success.We basically left a generation of workers hugh and dry to figure it out for themselves.
Here is where I think the Liberal side must be embraced,if we are going to embrace the Free market at its purest.
We simply cant turn our backs on 30% of the amercian workforce and say figure it out yourself.
The two ideas are counter productive to each other and have created a push and pull that has moved us nowhere.
Does anyone have any Ideas as to how we can address this imbalance?
Ive been thinking lately that maybe Academic standards need to be tinkered with through the accreditation standards.And less emphasis on some of the less then relevant requirements that drive up costs and debt.
Weve streamline k-12, why are college kids still required to spend money on classes completely irrelevant to their career choice that enrich the university more then the student?
It seems to me if we have transitioned into a higher level of economy, passing manufacturing on to the chinese and the Indians, then we must bring our workforce into that new economic driver regardless of cost if we expect to ever recover.