Markets are self-correcting. The U.S. currently has high unemployment and a trade deficit, and the Fed has responded to the former with an easy money policy that is pushing down the value of the dollar. (Gold at $1500?) As the dollar weakens, it will encourage companies to produce goods here for export, creating jobs and reducing the trade deficit. This is already happening. Foreign car manufacturers are opening plants in the U.S., at least in the right-to-work Southern states.
Policies such as a higher minimum wage (it went up about 10% in summer 2009), unemployment benefits lasting two years, and welfare benefits such as food stamps unaccompanied by work requirements are discouraging and in some cases restricting people from working. Deregulate the labor market and scale back the welfare state and more people will work.
Last edited by Bostonian; 04/28/11 05:16 AM.
