View from Eagle County: $100B here, a $100 B there …
Avon, CO, Colorado
It seems to me that a major cause of our economic problems is the transfer of our dollars to other countries. Our negative balance of trade takes $700 billion out of circulation each year as we continue to purchase much more than we sell in other countries.
Furthermore, because of our national debt, we send them another $150 billion in interest pay ments. That’s $850 billion that abruptly leaves our economy each year. And at this same time, our government is dedicated to putting money into the economy in order to provide a stimulus.
In addition to the purchase of oil, the major factor contributing to that outflow of dollars is the reality that we now engineer and manufacture far less than we have in the past.
We import steel and aluminum and almost all electronic devices and clothing and furniture and housewares and so many other items.
The transition to foreign engineering and manufacturing has cost us millions of jobs and obviously has greatly contributed to our importation of finished products and the exportation of our dollars.
And so I wonder just what it would take in the way of government loans, subsidies, tax credits, or other incentives to entice the owners to bring some percentage of those manufacturing facilities back home.
Perhaps even a call for patriotismmight help. If we could do that, we would be creating long term job growth rather than merely providing the temporary relief of a stimulus package.
And most importantly, we would be keeping our dollars at home to be cycled and recycled creating even more jobs.
David Le Vine