Economic Review

9/08/2010

Is the introduction of yet another stimulus plan the right fix for the US economy? Of course not.

The US economy continues to struggle to keep itself out of a double dip recession, while another dip could unfortunately result in more than just a recession. Job destruction continues to be the main culprit behind the continued economic sputtering. In reaction to this prolonged weakness, a new stimulus package has been introduced by Obama which includes such elements as tax write offs for investments in equipment for small businesses and other seemingly well thought out clauses that sound OK to spur investment and job growth.

Reality is however, that the US economy has massive structural problems that revolve around the promotion of globalization. The forces of globalization, a major component of which entails outsourcing US jobs to low wage economic zones is simply wrong and unsustainable. The Market Doctor team has warned of the negative ramifications of globalization for years now and the detrimental results of this pulse are rearing their ugly head in the form of continued destruction of US jobs, diminishing the quality of life for US consumers, all for the plight of increasing profits and incomes for a select few.

Simply put, ideals that allude to the fact that the “world is flat” are wrong for the US economy and will result in continued deterioration of the quality of life for many of its residents in the form of lost employment and depreciations of assets, net worth and wealth. New stimulus package??…how about introducing incentives to corporations to bring jobs home to the US.

Stephan Kudyba (MBA, PhD) THE MARKET DOCTOR

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