It’s becoming that obvious isn’t it

You have to love Thomas Friedman.  Considering his proximity to a
certain Princeton professor and Nobel Laureate, one has significant
hurdles to overcome to display moments (and I do stress moments) of

“In our subprime era, we thought we could have the American dream – a
house and yard – with nothing down. This version of the American dream
was delivered not by improving education, productivity and savings, but
by Wall Street alchemy and borrowed money from Asia.”

Almost.  The money didn’t come “from Asia” Tom, it was printed by Alan
and Ben.  But at least you’re on to something.  At least however, you
understand the need for savings.  I’ll give that one to you.  And that
means you weren’t swayed by the “paradox of thrift” drivel!!

“Our education failure is the largest contributing factor to the
decline of the American worker’s global competitiveness, particularly at
the middle and bottom ranges,” argued Martin, a former global executive
with PepsiCo and Kraft Europe and now an international investor. “This
 loss of competitiveness has weakened the American worker’s production of
wealth, precisely when technology brought global competition much closer
to home. So over a decade, American workers have maintained their
standard of living by borrowing and overconsuming vis-à-vis their real
income. When the Great Recession wiped out all the credit and asset
bubbles that made that overconsumption possible, it left too many
American workers not only deeper in debt than ever, but out of a job and
lacking the skills to compete globally.”

This problem will be reversed only when the decline in worker
competitiveness reverses – when we create enough new jobs and educated
workers that are worth, say, $40-an-hour compared with the global
alternatives. If we don’t, there’s no telling how “jobless” this
recovery will be.”

Good, now you’re getting it.  We didn’t create any wealth and
productivity, we simple pulled money out of a hat, so to speak, and we
overspent.  Thus, you’ve “discovered” what Austrians have long known,
that you can’t spend your way to prosperity.

Those who are waiting for this recession to end so someone can
again hand them work could have a long wait

That Tom, is how capitalism works.  The free market, it’s an amazing
thing.  But, it requires that those who do produce can realize their
gains, and not have leviathan steal their wealth.  And what has this
administration proposed?  Is it lessening the burdens on creativity and
production, or is it threatening them with confiscation?  Hmmm…

“Those with the imagination to make themselves untouchables – to invent
smarter ways to do old jobs, energy-saving ways to provide new services,
new ways to attract old customers or new ways to combine existing
technologies – will thrive. Therefore, we not only need a higher
percentage of our kids graduating from high school and college – more
education – but we need more of them with the right education.”

Yes of course.  Again, I beleive that was Schumpeter’s “creative

“Bottom line: We’re not going back to the good old days without fixing
our schools as well as our banks. “

Well Tom, I have some news for you.  Schools are public, meaning they 
are run by the government.  Well, they’re run by the unions.  Until that (well, both) situation changes, there’s not 
going to be any changes in education, and the situation will 
unfortunately, only get worse.

The solution is actually very simple.  Free markets and capitalism do
work.  In fact, they’re the only things that actually do, and they work
wonders.  Maybe you’re coming around, I don’t know.

Oh, and the only bank that needs “fixing” is the Fed.


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