Tag Archives: only industrial boost can avert dioression

Obama’s “infrastructure” infusion; DOA without product strategy!

24 Dec

Obama’s Recovery: The danger of product-less society!

 

In the early 1990’s, to very smart American, one Democrat, the other Republican, founded a group they called the Concord Coalition. The late Paul Ethemios Tsongas, a brilliant Democrat, and Warren Rudman, a standout lawyer and politician from Massachusetts, felt that the United States economy is moving on a track leading to long-term disaster.

 

Paul Tsongas who at one time attempted to run for President, was extremely concerned about a very fundamental phenomena that by its nature could destroy an economic system. Tsongas and members of his coalition insisted that models of the industrial revolution were a sound foundation for a sustaining economy, but that when the phenomena of an industrial product economy is switched to a service-economy; catastrophic results should be anticipated.

 

Since the 1990’s when the United States started to lose significant manufacturing jobs to Far Eastern countries, many slow-down, and minor recession occurred. However, the catastrophe that the late Paul Tsongas spoke of appears to have begun during the waning months of President George W. Bush Presidency.

 

Since the backbone of America’s industrial economy its automobile business, the recent decline of auto industry fortunes is a clear signal that the United States economy may be suffering from issues that Paul Tsongas discussed some two decades earlier.

 

President-elect Barak Obama is proposing an economic stimulus package that will yield three million jobs, and infuse money into an ailing economy. The plan proposed by the Obama people is an essential step to stop the present economy to hemorrhage and become an actual depression. The Obama plan is also important as part of maintaining an acceptable quality of life for the American people. The plan deals with fixes to the Nation’s infrastructure, an essential and overdue undertaking.

 

Some of the problems with the Obama plan have to do with the fact that it will not yield products. The Obama plan would be based on people serving other people. The plan, rather than to generate sellable commodities that are needed to fuel an economy in today global environment, is designed to improve quality of life, not to generate income generating products.

 

Since the Obama plan would inject some trillion dollars into the economy, one may look for some product-generating fall out. The three million new employees are likely buy cars, appliances, and houses, all items that are required for a successful industrial economy.

 

Many question remain. The trillion dollars of taxpayer’s money will have to come from some credible source; what is that source? How will the money be repaid?

 

If President-elect Obama is serious about fixing the ailing economy, a production recovery element of an economic plan must be developed in parallel with the infra structure infusion, or the present declined will continue and become worse.