I am optimistic for the economic and social outlook for the United States! During the next four or five years we will, once again, shift into gear. “Occupy Wall Street” will come to be thought of as “Save the Nation(s).” The present Administration is moving, and will move quickly, away from the “cow tow” to its previous campaign finance supporters, its paralyzed group of economic advisors (where advice is the banking establishment program of “save the banks, be damned with the rest”) towards advisors who understand the wants and needs of the nation(s). Moderate Republicans, a concept of the past, will reappear. Supply-side economics, a failure from its inception, will be shelved; the Goldman designed dangerous derivatives – Geithner and Bernanke – will be replaced. Fiscal spending, infrastructure rebuilding, leadership in educating our youth, fairness in protecting the health of the populace will resurface. Banking and investment law will be reset to the rules in place prior to the Reagan Administration. Yes, all of this can happen in a peaceful environment if government pays attention. There is a serious shift in the political environment of the U.S. taking place. “Occupy Wall Street” is simply a symptom of the need of the people to express their frustrations. We hope it will not lead to violence, either internally generated or from the outside. But wherever it leads the world is about to begin a transition, a transition for the good. Those of us who pay attention will benefit as human beings and in all ways economic. I am optimistic for the future though fearful much serious economic and social pain will be experienced getting there.
In 1961 (50 years ago) I did a paper entitled “The Economic Consequences of the Great Crash.” You may read the PDF version of it here. Though a bit sophomoric and pedantic, I think most of it is relevant to where we are now and where we must go. I was twenty years old. If you have the patience, give it a read.