Small business, exports and savings
You don't have to agree with Spengler to appreciate his thinking. His latest column is well worth reading:
"If economic fundamentals leave the middle class in the cold, they have put the core constituency of the hard left into the deep freeze. The welfare state is collapsing because the money isn't there to support it. State and local governments have eliminated 400,000 jobs since August 2008, and are cutting spending at a 2.4% annual rate. That eviscerates the so-called public service unions, the core of the Democratic Party's activist constituency.
The poorest and least-educated Americans, moreover, have seen no recovery at all. High-school dropouts have a reported unemployment rate of 13%, while Americans with a bachelor's degree have an unemployment rate of 4.5%. The discrepancy is much worse, because the labor force participation rate of high-school dropouts is only 46%, against 77% for college-educated workers."
"If economic fundamentals leave the middle class in the cold, they have put the core constituency of the hard left into the deep freeze. The welfare state is collapsing because the money isn't there to support it. State and local governments have eliminated 400,000 jobs since August 2008, and are cutting spending at a 2.4% annual rate. That eviscerates the so-called public service unions, the core of the Democratic Party's activist constituency.
The poorest and least-educated Americans, moreover, have seen no recovery at all. High-school dropouts have a reported unemployment rate of 13%, while Americans with a bachelor's degree have an unemployment rate of 4.5%. The discrepancy is much worse, because the labor force participation rate of high-school dropouts is only 46%, against 77% for college-educated workers."
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