Fears of the worst recession in anyone under 80 years of age’s memory may be erased by a flood of money unleashed by the world’s governments, sovereign wealth and private bottom-feeding funds. Unfortunately it may sit in vaults for six months while the world grinds to a halt.
But when it starts to recover what will the US have to exchange to pay for a National debt approaching 100% of GDP?
Financial services, nope not any more.
Healthcare – too expensive and falling behind the rest of the world’s. Joe the plumber can’t afford to float this $1.5T segment of our GDP anymore. Biotech – increasing competition in Europe, India and China
Green & alternative energy – maybe, but the recession may push the priorities for “tomorrow’s” solutions down again. Nanotech, software, computing and Internet technology. – Yep, but
We also need to spend on infrastructure – estimates of $1.5T on roads, bridges, trains, power grid and that doesn’t count education. No-child-left-behind has lowered the HS graduation rates below those of a generation ago. Throw in the long term costs of the Cheney-Bush wars, medicare, social security and the outlook is grim.
The long term view is that the world may be moving closer to real cooperation on global problems, and the US of A exports solutions better than any civilization to date.