Friday, July 02, 2010

The Hill's Big Question asked today: Is Economy heading for double dip.

My answer:

It is more than a double dip. The world economy is heading for a systemic change. As Harold Meyerson wrote in the Washington Post the other day, Germany and China should be seen as new economic leaders. But Canada should be recognized as well as approaching an ideal society in western eyes; excellent banking and infrastructure, 12 years surplus and health care to boot. What these three have in common is their own unique cultural and work ethics. America should think now how to be competitive in this new realm: The agricultural regions, which are vast in North America, have strong futures, the manufacturing sectors are not competitive nor are the financial sectors particularly competitive. This is the advice of commodities guru Jim Rogers. We in the U.S. should begin to think of what works for which region. And what is the roll of the cities? Do they have one? New tax systems should develop regional circles of economy in “natural states” like the Carolinas, the Virginias and Tennessee. A local economy for Vermont, New Hampshire and lower Quebec for example, focused on the Northeast Kingdom which is right in the center, should be given tax incentive. Keep cash local, trade locally when there is no need to globalize – nothing could be more wasteful in spending or worse for the environment than sending wool from Australia to Vermont via South Africa for carding to make a pair of socks, as it is done now. Think locally, act locally.