by Jeffrey Kohut

Created on: March 28, 2008

"Globalization" - a pernicious economic policy for the US and the world

The modern US economy: the illusion of prosperity

Since the end of World War Two, the policies related to the development and maintenance of a truly powerful and stable US economy one capable of accommodating continual real growth and real gains in our standard of living - have been increasingly supplanted by economically subversive policies favoring "globalization". Sensible economic policies encouraging a diversified, self-sufficient domestic economy have been deliberately abandoned - at the expense of US workers and our national security.

The mathematics of a healthy economy demands a balanced economic equation, with production (of wealth as domestically manufactured/produced goods and commodities) on one side of the equal-sign being equal to consumption (of goods and services) on the other. The US economy currently consumes vastly more than it produces, and is horribly out of balance, with a huge annual production deficit, the (cumulative) effects of which are represented by a huge credit bubble on the verge of complete collapse, which is threatening to cause a global economic implosion

The US economy is in a continuing, long, self-directed decline. Our production of real wealth, as represented by the total, inflation-adjusted value of domestically-produced manufactured goods and commodities, as a percentage of our overall domestic economic activity (GDP), has fallen dramatically over the past four decades (see, "Bill Testa, on the Midwest Economy", Federal Reserve Bank of Chicago, August 30, 2006; also see Economic Report of the President, 2007 Report Spread Sheet Tables). The fact of the matter is that, for the better part of two generations, the United States has been enjoying a pseudo-prosperity, based on increasing levels of consumer debt that is not underwritten by the production of real wealth. The payment for this orgy of credit-financed consumption is now coming due

Undeniable signs of a collapsing economy

An examination of the major economic events of the past four decades reveals a pattern describing an increasingly unsound, weakening US economy: the energy crises and deep recessions of the 70's; the deep recessions, housing market crises, stock market gyrations, and the savings and loan crisis of the 1980's early-90's; the tech-stock crash and major stock market contraction of 2000, followed by the recession in 2001; the present US credit-market collapse, real estate market

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