Compromise.

Editor,

The multinationals have cut loose American workers because markets in the developing economies are so enormous the corporations figure that with clever financing even workers who make $5 a day can buy products that are manufactured there for export now.

This explains, I think, why the right refuses to spend on infrastructure or alternative energy development here: They would rather forget about the U.S.A. because there are plenty of consumers where the cheap labor is if the balance can be struck just right.

Am I being paranoid? Not really. China is Volkswagon's #1 market, and BMW and Mercedes are not far behind (per a NYT article about domestic consumption in China a few weeks ago).

The American economy can be goosed almost effortlessly because the dollar is the world's reserve currency -- a unique advantage. But people who have big money don't want to spend it here. Hence pathetic tax revenues and no "stimulus" beyond tax cuts for the rich and austerity for the poor.

Besides, even if the Republicans in a wild and crazy moment did agree to spend money here at home, they would give it to banks (as they have) and private corporations (as they do) -- who are experts at ripping of taxpayers -- instead of to workers, who would spend their wages immediately.

I agree with the rating agencies that the problem in this country is political, and although the issue today is slightly different than that in the 40 years preceding the Civil War, the politics are just about the same: attempt after attempt at "compromises" that are not compromises at all.

Re: "Where Will Growth Come From?" (8/11/2011)