What are some of the problems with the American economy?
SF: When it comes to the American economy, we have to take a hint from comedian Rodney Dangerfield who always talked about getting no respect. Well, the U.S. economy doesn’t get much respect. We still have very good fundamentals. Productivity grew twice as much in this decade as it did in the previous decade, even though it fluctuates from quarter to quarter. Thanks to technology, we don’t have the inventory gluts that we had in the past. Businesses now respond more rapidly to changing times and circumstances. Corporate America is flush with cash to the tune of $2 trillion dollars. Despite the smearing of the American consumer as wallowing in massive credit card debt, the net wealth of American consumers now totals about $29 trillion. If you throw in what people have in their 401k plans and what the equity in homes is worth, you get another $25 trillion. The American people have more savings than the rest of the world. Meanwhile, Washington diplomats say we don’t save enough. EL: What’
