Monday, May 23, 2005

Economic Decline? Think Again

An insightful article from Robert Samuelson on the old habit of predicting US economic decline. The ending is on the money:

On being overtaken, history teaches another lesson. America's economic strengths lie in qualities that are hard to distill into simple statistics or trends. We've maintained beliefs and practices that compensate for our weaknesses, including: ambitiousness; openness to change (even unpleasant change); competition; hard work, and a willingness to take and reward risks. If we lose this magic combination, it won't be China's fault.



At 5:15 PM, Blogger E. Rush said...

This reminds me a little of Kessler's "We Think, They Sweat" concept. It's not rock-solid, and Kessler himself admits that he's dodging the topic of the J-curve (or claiming it doesn't apply to an IP economy), but there's something there. Trade deficits are still leading indicators, but of what? Is it so bad that America's businesses are focusing on high-margin markets, and offshoring low-margin production?

I don't know. But I'm certainly trying to figure it out.


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