The Future for U.S. & World Economies

Recession, depression, stagnation; labels aside, main-street U.S.A. is in and will continue to be faced with a decline in demand for goods and services the majority of citizens can no longer afford. While academics , "professional" economists, the Fed and Presidential advisers, quibble over semantics, theories and blind hopes the U.S. economy will be long, very long to to regain its status circa 2005.

Today "bail-out", "stimulus", and "negative interest" are the buzz words. The reality the majority of Americans well know, is that the jobs that they will get in the future, will not pay what the jobs they lost paid in 2005. So what does this mean for the U.S. ? What does this mean for for the rest of the world ?

The U.S. has been exporting jobs and production to foreign, off-shore, countries for over a decade. This is common knowledge; the labor differential, NAFTA and related trade agreements have hastened the process. While CEO's have pocketed tens to hundreds of millions, U.S officials and the U.S. Congress have never addressed the "end-of-the-day" scenario. 2008-9 are the "end-of-the-day"; the end of millions of U.S. jobs, jobs at pay rates, that will not return. Slight-of-hand economics and policies will no longer mask the reality that the U.S. economic engine has burned itself out.

What does it mean ? It means that the disposable income of the U.S. worker will decline over the coming years; decline as much as 33%, or more, over the next five ( 5 ) years. This decline will be aggravated by inflation: increased costs for electric, water, sewer, garbage phone and utilities, and higher local and state taxes. Accordingly, the U.S. consumer will buy 33%+ fewer goods and services. The disposable income of U.S. consumers and high U.S. consumption rates, have been the fuel for world economies. As of late, China has been the major producer of goods consumed by the U.S.; Europe and other emerging economies have benefited proportionally. The decline of average wage earned by U.S. workers will have a major impact on other economies. While academics, economists, politicians and world leaders focus on the "financial" community, liquidity and credit, the real problem is the decline in U.S. worker wages and disposable income. Few, if any, in high places understand the bottom-line which means that the future, next five plus years, spell gloom for the U.S. and the rest of the civilized world.