Our trade deficit is out of control, and in this video Warren Buffett explains why that’s so dangerous.
I remember a discussion I had recently on this blog where I said that consumer spending drove this economy. Somebody disagreed and said our economy is based on making things. Well, that’s obviously not true if our trade deficit is the biggest in the world. Sure, we make things, but not nearly as much as we once did because we’ve embraced the idea of worldwide marketplace where “cheap” is the greatest good. And that POV has consequences.
In reality, we’re a country of middlemen, where stores offer up a ton of foreign made products and we buy them up to the point where we tens of thousands of dollars in debt. And the cracks are beginning to show…big time.
This is one of the reasons why I think the green energy spending initiatives put forth by this administration are so important. Because if we get that right, a new energy revolution will happen, our economy will flourish and we’ll get back to being a country of making things instead of simply buying things.
Still, a big time refocusing of priorities needs to happen. The “big screen TV” economic model simply isn’t sustainable and Americans needs to be aware.
(h/t: Right Democrat)