posted 03/17/2008

More than any other issue the state of the economy impacts all of us in one way or another. The situation we find ourselves in has been building for many years, with the roots of our current problems stretching back decades. But the last few straws were placed starting seven years ago.

After the attacks of 9-11 we faced the growing concerns of a global war and a faltering economy. Several decisions were made that have compounded our problems. The large tax cuts of that year seem to have benefited only the top wage earners in our country while the job losses for the lower and middle income families have accelerated.  

Because of Globalization we now purchase goods produced from all around the world. But I have trouble understanding how it helps our economy to borrow money from China and then buy goods produced in China. Sure it helps the Chinese but do we need to go into debt just to keep buying the stuff they make? One simple solution is to buy local. Goods produced in the U.S. have a value beyond the cost of the product to the consumer. When those making the product live here they are earning a wage that will be spent here. Do we really need something that is being produced in China for $1, shipped to the U.S. for $.50, then sold for $15, while the only person earning a wage from this product is the sales clerk. Some of these companies are making good profits but in the long run when the workers in the U.S. no longer have jobs that allow them to make a living wage, who, is going to buy their products? Buying local is the start to keeping more of our money at home.   

The next step to a better economy is Energy Independence. Most of our energy comes from sources outside the US. Including petroleum and natural gas we import more than $400 billion worth of energy products every year. This money is just being wasted. We have, or could develop domestic sources of energy including fuel for our homes and cars, so why are we throwing money away. Also who are we buying this petroleum from? Iran, Saudi Arabia, Venezuela, Iraq…. The list goes on. What do these countries do with the money? Why are we buying oil from countries that hate us or at the very least have in place policies that most Americans would find very unpleasant? I can just imagine how much Hugo Chavez is laughing about those stupid Americans. We need to use our own natural and renewable resources. Becoming energy independent will greatly help both our economy and our security. We will be employing more people here in the U.S. and with the increased research we could even sell this technology to other countries.  

The long term fix to what ails our economy is to start at home with our spending, both with locally produced goods and services, and energy independence. Sounds like a situation were everyone wins, everyone except Hugo Chavez. I can live with that.