A more optimistic perspective

by Laura Ehrenberg-Chesler on November 3, 2011

in Economic Indicators,Employment,Energy,politics

There is, and has been, a good deal of pessimism lately, from the expectations for domestic and global economic growth, to global demographic trends, to politics. Yet my partner and I have been discussing some slightly longer term trends that, if they come to fruition, could lead to a renaissance of economic growth, particularly in the United States.

There was a good deal of discussion after the Japanese tsunami, that some high tech manufacturing may be moving back onshore, in order to prevent the kind of supply disruption that ensued after that tragic event. The tsunami served to highlight the risks involved in having so much dependence on overseas manufacturing.

Recently, we heard economist Ed Yardeni raise

another issue that could serve to drive more manufacturing of all types back to the U.S. On a relative basis, labor costs around the world are rising, making domestic labor markets more attractive. This trend will certainly take some time to play out, but it may bode well for the employment picture and economic growth in the not too distant future.

Another major positive trend is our move toward energy independence. With the advent of “high tech” drilling for oil and gas, there is the belief that we have enough fossil fuel of our own to eliminate, or drastically reduce, our reliance on countries who may not be friends of America. This will enable us to control our own supply, and make fossil fuel more cost efficient.

If you couple the suggestions above, with the idea that change in 2012 may improve the business climate, so that companies like Boeing can operate their plants in the state of their choosing, I think you have the makings for an optimistic outlook for America.

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