Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts

Sunday, December 28, 2008

Unrealistic Expectations

The inauguration of America’s first African-American President will soon be upon us. No one can argue that this is a historic event in our country’s history. Who knows? Some day we may even elect a woman as President.

I’m not here to talk about gender or race though. What I do want to discuss is the unbelievably vast amount of things that many people are expecting President-Elect Obama to be able to accomplish when he gets in to office. I fear that there are going to be a great many disappointed people when they discover that our new President will not be able to wave a magic wand and make everything that they want instantly appear.

Our country is in the midst of an economic and social crisis. The official types have finally admitted that we’ve been in a recession for almost a year. Will we continue to fall and wind up in a depression? The rate of job losses and home foreclosures shows no sign of slowing. At this rate we stand a good chance of falling into a depression.

With a massive national dept, several wars, job losses, and all the other problems facing us our soon to be inaugurated President is going to have his hands full.

History is an excellent teacher. Let’s take a look back to see what happened to other President’s faced with national crises during office:
  • Franklin D. Roosevelt took office during the Great Depression when unemployment stood around 25%. I find it interesting that he blamed the depression on bankers and financiers, the quest for profit, and the self-interest basis of capitalism, a situation very similar to the one we are in now. While he was able to pass much legislation during his first 100 days in office, there were many who opposed him. This opposition followed him into his second term where he was unable to pass much legislation through Congress. Roosevelt was elected to a historic 4 terms in office, but what really brought this country back to its feet was World War II. Personally, I don’t think we need any more wars.
  • Jimmy Carter had his share of economic problems while he served in office. When he took office in 1977 America was suffering rising economic inflation and an energy crisis. He accomplished a great deal of good while he was in office: creation of the Departments of Energy and Education, establishment of a national energy policy, the famous Camp David accord, and the establishment of the Arctic National Wildlife Refuge. However, he had many problems with Congress and was unable to get much of the legislation that he wanted passed by Congress. Very few people think of him as a good president.
So, what does this say for our next President? We need to be realistic about what he will be able to accomplish. Cities, counties, states, and even the Federal Government are getting fewer tax revenues to use to pay for all the services and support that the people need. With little funds to draw upon, there is only so much that anyone can do. We’re in a big mess. We did not get here overnight. We will not get out of this mess overnight either.

I’m not the only one thinking this way either. Check out this political cartoon by Chris Jurek. It was selected as one of the top 10 political cartoons by Time magazine.

Sunday, October 19, 2008

Fixing Our Economy - A Few Suggestions

By now I think even the most skeptical and conservative would have to agree that we are in, at the least, a recession here in the U.S. Personally I’m inclined to agree with those that feel this started late last year as that is when my computer consulting business saw the bottom drop out of it.

Because this is an election year there has been much mud and smoke thrown about as both major political parties describe how wonderful their plan is and how bad the other party’s plan would make things. I’m not here to say which side is best, rather I want to point out some [possible] long-term solutions that are not being discussed:

Energy

Currently we import and consume too much oil. Oil is not a sustainable resource and, while we can’t agree on when it will run out, we will eventually run out of it. There are other ways to produce energy. We need to fund, at a national level, research on alternatives. There are a number of, I feel, obvious benefits from this, including:
  • We reduce the amount of money flowing from this country and spend it here at home instead.
  • Money spent on research should spur an increase in engineering and other related fields. This country desperately needs more high-wage jobs as opposed to our current choices of “paper or plastic?” and “you want fries with that?” opportunities.
  • Reduction in air, water, and land pollution.
Check out official energy statistics from the U.S. Government showing how much we import and from which countries.
Read what the Apollo Alliance has to say on clean energy and good jobs.
I have more ideas posted on my alternative forms of energy blog post.

Science

Nations prosper that invest in science and engineering. For many years the U.S. was a leader in new technologies and we prospered because of it. Now, unfortunately, few students are interested in math and science because there are not enough new jobs being created.

I know that a lot of people feel that ‘pure science’ research is just money being thrown away. However, research spurs new ideas and new products. New products lead to new jobs. Have you seen the unemployment numbers lately? This country has been on a net job loss for too long. When people have a job they can spend money on things they need. Spending leads to investment with leads to even more jobs and a way out of this recession.

Check out what the HPC Wire has to say about current science funding.
See a comparison of U.S. to China science funding.

The future of this country

The U.S. is still a superpower, but for how much longer? China is in the process of outpacing us in both scientific funding and space exploration.

So what you say? Why waste money on science and space? Look at some of the spin-off products from our space program are now part of our daily life:
  • NASA technology gave us a "cool" laser, which provides thousands of patients with an alternative to heart bypass surgery.
  • Hubble Space Telescope technology has made it possible to do certain breast biopsies with a needle instead of a scalpel.
  • The foam insulation that covers the shuttle's external tank, developed by NASA's Marshall Space Flight Center and Lockheed-Martin, is used to make molds for fitting artificial limbs.
  • Medical personnel can monitor fetal activity inside the womb using a small pill-shaped transmitter developed at NASA's Ames Research Center.
  • The same material used for lightweight, durable spacesuits is used as permanent covering for shopping centers and sports stadiums. NASA technology also is used to pad football helmets and baseball and soccer chest protectors and shin guards.
  • NASA-driven technology also makes possible satellite TV transmission and telephone signals that are beamed around the world.
  • It has led to microcapsules that help clean up oil spills and to satellite remote sensing technology that locates and maps forest fires.
There's a lot more. Read the full list at the NASA Solutions site.
Read about recent developments in China’s space program.
Take a look at China’s overall space program and plans.
Read about some of the medical benefits that have come from space exploration.
Space exploration is important, read more here.
Mining resources from space, read more here.
Take a look at planet Earth as seen from space.

After World War II this country invested in both science and space. Our economy boomed. People from all over the world flocked to this nation because of the availability of high-paying jobs and the many opportunities for all to prosper. If we are going to get out of our current mess we need to look at what worked for us before. We can’t afford to wait.

Sunday, April 27, 2008

It IS the economy stupid

I came across this political cartoon the other day by Corky Trinidad and it got me to thinking about what this country would be like if all the Iraq war money went to something else.

First, do you know how much money the United States is spending on the war? zFacts has an interesting chart that updates continuously and a few frightening facts. Here is an excerpt from an article at The Coloradoan “The Iraq War is costing more than $400,000 for each troop in the field. We are spending over $240,000 per minute for this war. The war costs each American household $138 per month. By 2017, the United States will have paid $1 trillion in interest on money borrowed to finance the war. This nation deserves better.”

Now, what can you do with $1 trillion dollars? Here are some suggestions from an article in The New York Times :

  • Public health: treat every American whose diabetes or heart disease is unmanaged plus a global campaign to immunize millions of children.
  • Education: Universal preschool for every three and four year-old child in the U.S.
  • Rebuild New Orleans
  • Real national security: we could put into place all those recommendations by the 9/11 Commission that haven’t been done

All of this could be done and we’d have some money left over! Or, how about this? Instead of a puny little “economic stimulus” check (my $300 should cover about 3 tanks of gas, if I’m lucky) the government could send every American enough money to REALLY stimulate the economy!

Economics Nobel Prize winner Joseph Stiglitz and Harvard Professor Linda Bilmes have published a book, “The Three Trillion Dollar War.” This book should be must reading for all of us because it details the true costs of the war in Iraq. The war is a legacy that will be with us for several generations as we deal with the debt the nation has incurred and the massive number of wounded veterans that will need continuous medical care.

As a nation we need to wake up and smell the coffee because someone has left the pot on the burner for too long. There is an election coming up in November. Let’s hope we can do some good then.