US economy must return to product-based economy, or fail! Without a product-base a service economy cannot be sustained.

4 Dec

An economy without a product-base, an economy based on service (included government, which produces nothing but service, regulations, and oversight,) cannot sustain itself.

Since much of the “stimulus” went to government positions (including infrastructure “fixes,”) it may help generate a superficial boost, but it does not offer a basis for stable economy. Fast food, insurance, healthcare, and other services, may be important, but servicing products produced overseas, is a sure route to economic failure. The President Clinton e-commerce boon was based on “virtual,” products, it was destined to fail, as indeed, it did!

President Obama must start an effort to encourage the rebuilding of a product-based economy, give producers incentives to get their products (or at least parts for products,) build in the United States. This must be done regardless cheaper labor, and other costs, that they can get from foreign sources. This is not to suggest tariffs on imported products, but rather to offer tax breaks, favorable financing, and other incentives for those who produce “hard” products in the United States.

—-More to come! —-

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