Ross Perot was right. So now that we've lost 15-25 million jobs to cheap foreign labor, just who is going to fuel the engine of growth? The illusion that we can spend our way out of debt is based on one single axiom. Growth. Growth is the engine that has allowed the U.S. to escape every economic downturn. So with the absence of all of those consumer purchasing, tax paying jobs, just how are we going to work our way out of debt?
View the Perot prophecy here: (remember this was 20 years ago)
Answer. We can't. In the past, we could spend our way out of debt. Easy credit greased and fueled growth. But we have lost all of our jobs- our ability to grow. That's why there is no end in sight.
The best metaphor I can think of is pushing the accelerator to the floor after your car's transmission has blown up. The engine races but the car is slowing down. In fact, that metaphor almost precisely describes our economy. They are doing everything humanly possible, practically giving money away, and guess what? No growth. Businesses can't hire, the unemployed cannot buy homes, goods, or pay taxes. And still the idiots, guys like Krugman or the FED, want us to keep the accelerator on the floor. Absent drastic and legal changes regarding foreign hiring practices, we are toast. What we are experiencing is a giant reset that is going to go on for years and decades. A continual economic slowing down until our car stops.
The answer is simple. Under the circumstances that exist today- it is impossible to spend our way out of debt. Here is a chart that illustrates the most recent quarter century and the trend as millions of American jobs were transferred to foreign countries. I swiped it from Zerohedge. Go ahead and find the long term, sustained growth there. I dare ya.