I said I'd write on some solutions today, but I have chosen to actually write a short post in regards to President Obama's piece in the NYT. I think he wrote this article keeping in mind that none of these ideas are far enough evolved to be implemented, but it's a start. I will say, though, that the best solution would be to shut the media up and put aside politics, and only then will you realize what does and doesn't work economically. That'll be the day.
President Obama wrote an article for the Op-Ed of the New York Times this weekend; it's just him cleaning up in the shower after the elections, sure. The article is about how growing our exports will lead us to economic stability. The President names a few markets that we would want to grow in, including places like South Korea.
What are we exporting that they want at this point, though? The President never points that out, he just names some markets and says exporting to them would be good. Yes, getting an amount of money from them that is worth less to us than what we receive, would be great. Unfortunately a place like South Korea now has their own cars, they have their own food, and Boeing and Cessna don't really have a whole ton to offer right now amidst delays and union strikes. Luckily the President does mention that he is interested in working with the countries that don't have strong trade channels for trade agreements worth billions.
China wants our cars, GM is HUGE in China right now. China wants our food, we have a ton of it, and they have a ton of people. China somewhat wants our manufactured goods, but they can make it themselves cheaper. General Motors sells two times more cars in China than they do in the United States right now. The President doesn't name China as a target market, though. Oh well, politics are fun!
The article also mentions expanding our trade efforts in the Trans-Pacific Partnership(s). This is a great idea because the entire purpose of the strategy is to get rid of 90% of tariffs, therefore opening up more capital for trade. The countries within the pact should also consider expanding to allow other countries in. Not all of the current members such as Brunei are huge trade markets for us, but countries like New Zealand and Australia may have a bit more to offer as far as straight-trade goes considering labor is about the same costs.
I think, finally, I agree with Obama's efforts that are mentioned in this article. Exporting is the best way to get money you didn't have before. The next question is once we get that money, how do we use it to really give that boost. Tax cuts, perhaps? We shall see.
If the “crisis” led us into the Superbowl, we're still in the 1st quarter-- there's still a lot to be done.
Enjoy your Sunday evening,
-Colin
References and Articles:
Exporting Our Way to Stability / President Barack Obama (New York Times) http://www.nytimes.com/2010/11/06/opinion/06obama.html?_r=1
Trans-Pacific Strategic Partnership (PDF)
http://www.mfat.govt.nz/downloads/trade-agreement/transpacific/main-agreement.pdf
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