GVTucker, <<<Natural gas prices aren't the end all, of course. If the economy is fine fundamentally, GM wouldn't have reported car sales down 20% about an hour ago.>>>
I know I am out of my elements discussing economics with the likes of you, but here goes anyway.
When will we ever be free from imminent energy crisis? But, we in the United States are far better off than any other economy vis a vis energy. Even if we have stupid energy policy, we have a lot of cushion, in that by just being less wasteful and energy efficiency conscious, we could delay energy armageddon.
Other economies have far less margin for error.
As for GM and the other US car makers are concerned, fewer talented people are going into that business and their lack of success is clearly correlated. GM has long been run by bean counters instead of car designers, engineers, or even marketers. (let that be a warning for Intel).
What makes our economy fundamentally strong is the depth and quality of our human capital. What the dotcom phase/period (1994-1999) of our economy demonstrated was that we had more talent, creativity and energy than anyone thought we had. It is only a harbinger of good things to come.
You are not old enough to remember, but Germany and Japan were devastated by poor leadership that led their countries to complete disintegration and ruin. After World War II, Japanese and German economies were in complete ruin.
About the only thing they had was human capital - and nothing near the human capital that we have now - and look how quickly they created new economies.
Germany and Japan had nothing like the human capital factories that we have in the golden triangle, Palo Alto, Boulder, Colo., Austin, Tx, Cambridge, Ma.,....
Our economy is fundamentally strong.
Mary |
