The Economic Future of The United States of America?

Question

A strong economy depends on exports significantly exceeding imports. We have an illegal immigrant population sending US dollars "home." We have China selling us most of consumables. We have very little to export since the labor costs in the US preclude selling at competitive prices. We are dependent on foreign oil for our national security and domestic energy needs.

What have we got going for us that suggests any possibility of surviving economically?

Answer 1

Hi,

The things you say are so, but don't worry - the US will survive. I don't know, however, why there is so much fear of competition from abroad. Nowadays it is all about efficiency - the more efficient economies are the winners, the ones which isolate themselves from the outside world through high tarrifs or other protectionist measures have no bright future.
In the middle and long run, the economic future of the US will surely depend on the nation's capability to:
1) lower its dependancy on foreign oil - it would be perfect, if the nation uses more renewable sources of energy and also uses sparesly energy as a whole;
2) keep on to be a leader in new technologies - this will provide maybe not so big volumes of exports as in the past, but much more valuable and thus, providing more incomes;
The dollars illegal immigrants send back home, of which you fear so much, play also a possitive role in the US econhomic development - if you think, this money could be used, to some extent, for buying imported goods from America :o)) And besides do not forget that the illegal workers work for the American economy, so they help it by adding value at its very base.
As Einstein once put it - "Everything is relative", depending on the viewpoint.
As a whole, the US economy will survive and continue to be one of the biggest, but it will have to compete harder with others - China, India, Japan, Russia and EU. The time of the lonely runner is over and the faster we understand this, the better.

Answer 2

You are completely wrong. A strong economy does NOT depend on exports exceeding imports. Why would you even think so? Everyone who buys an import does so precisely because that makes them better off. The US has had a trade deficit throughout history into colonial times for 400 years. The result of centuries of trade deficits is that the US became the richest, most powerful country and economy in human history. Trade surpluses were a temporary phenomenon of the mid-20th century that resulted largely from other developed countries being devastated by war.

You might be suffering the zero-sum misconception that there is only a fixed amount of money on Earth, and one country can only get some by taking it from another. That's not true, as any country including the US creates wealth internally if they have free and healthy markets, and uses that along with exports to pay for any imports desired.

The answer to your question is the the economic future of the US is quite bright -- it has a growing population, people who are independent, creative, and willing to take risks, and even if Democrats are in charge there's no real prospect of the US turning away from the free market capitalism that has made us so successful.

Answer 3

The idea that "A strong economy depends on exports significantly exceeding imports" just isn't true. The statement itself isn't logical because if that were true, then no one could have a strong economy because everyone would want to export and no one would be buying anything from anyone else. Obviously that isn't the case because there are many nations with strong economies that import more than they export. The US has a technology based economy rather than a manufacturing based one. We can afford to consume good from other countries because we are productive enough in other ways. Just because we don't produce tangible goods doesn't mean we don't produce anything. A strong economy depends on increases in productivity.

And if you're so upset about high labor costs then why are you complaining about illegal aliens? They drive the wage rate down because they expand the labor pool. If there were no illegal aliens, then the wage rate would be higher, and guess what? More (farming and manufacturing) jobs would be outsourced to other countries. So not only would we lose those jobs, the money that they spend here (in our economy), would be spent elsewhere as well.

While I agree that we need to reduce or eliminate dependence on foreign energy sources, I don't think there's much logic behind most of what you're saying.

Answer 4

Interntal comsumption and growth for the untied states look at housing thier is a lack of housing out there actually that is why prices have rose. Support schools with taxfunds to train people in industries that are more supportive of domesitic economy. Outscouring, and exportation of skilled American labor will acclerate. Goverment policy needs to shift toward internal stimulation of economic growth we are never gonna compete in exportation of commodies with China artically making thier currency cheap. Untied States could use the skilled workforce to build up Mexico and Central America too. Promote and expanding domesitic energy exploration so America is less dependant on countries in the middle east. Finally, America will always be richest country in the world it has been for the 90 years, but middle income countires will have income that are like Canada today in the next 20 years that will provide the Untied States lots of opponities to export high vaule added items to those Markets. USA looks good in the next 30 years, but income diparties will grow among all people, but we will all have more goods to use and comsume all around the world.

Answer 5

you're thoroughly incorrect. a reliable financial gadget would not rely on exports exceeding imports. Why could you even think of so? anybody who buys an import does so precisely on account that makes them extra useful off. the U. S. has had a commerce deficit for the time of history into colonial situations for 4 hundred years. the consequence of centuries of commerce deficits is that the U. S. became the richest, maximum powerful united states of america and financial gadget in human history. commerce surpluses have been a non everlasting phenomenon of the mid-twentieth century that resulted commonly from different more suitable international places being devastated by making use of conflict. you're suffering the 0-sum false impression that there is in simple terms a set volume of money in the international, and one united states of america can in simple terms get some by making use of taking it from yet another. that may not actual, as any united states of america consisting of the U. S. creates wealth internally in the event that they have unfastened and healthful markets, and makes use of that alongside with exports to pay for any imports needed. the respond on your question is the the financial way forward for the U. S. is quite superb -- it has a starting to be inhabitants, people who're autonomous, imaginitive, and keen to take hazards, and in spite of if Democrats are in cost there is not any genuine prospect of the U. S. turning removed from the unfastened industry capitalism that has made us one in each and every of those fulfillment.

Answer 6

KevinStud (no relation to me) has given you an awesome answer.

Simply put, the reason we can buy all these imports and have this trade imbalance, is because we produce so much wealth in this country that we can send much of it overseas and still be just fine.

Manufacturing is going the way of other past technologies, because any country can do low skilled manufacturing. We no longer cut and bring ice to people's houses for their ice boxes, nor do we make horse buggies any more. The future lies in knowledge and service economies, which are aimed at improving lives and adding value.

This is why education is so damn important now, because it's vital to have that education to do this new kind of work. There is no future in low-skilled manufacturing jobs.

Answer 7

If we go down the world goes down. Besides we own a whole lot of the world anyway.