Originally Posted by patteeu
We used to essentially be THE global market and our producers didn't really need to worry about exports. Every year, our share of the global market declines and exports become more and more important to our prosperity.
That era is never coming back. We had factories already ramped up for war. We were undamaged at home. We had a monopoly to sell the goods that rebuilt after the war.
During this post WWII era, we allowed the largest middle class the world has ever known to be built. We are still living off that success as our exports have declined.
We can't compete with $5.00 an hour wages. What we have to discover is that widget that we can build cheaper and pay "American" wages and still sell overseas or we are going to be a consumption economy forever. This is why I strongly advocate to keep the middle class strong. Without it, we are doomed for failure. Maybe not next year or the next but eventually everything will collapse.