Wednesday, February 27, 2013

By Forgetting Its Proud Economic History, Syracuse Loses Its Future

For eight decades, right up to the Depression, Syracuse was one of the thirty largest cities in the country with one of the best-educated and healthiest populations. For another thirty it was among the 50 largest cities. Not surprisingly, given its economic importance, it was also one of the wealthiest cities. Everyone had good jobs. Household income was well above the national average. Family bank accounts were at times higher than those in Detroit and Philadelphia. Not surprisingly, its school system was one of the best in the country.

Today Syracuse’s civic distinctions are embarrassing. The city’s economy no longer works. A recent report from the state found that average household income was $31,000 while the state average was $55,000. It appears that its future is no longer dependent on the genius of its people but the largesse of higher order governments both state and federal. It has lost its ability to determine its own fate. [more...]

In his new book, "Better Capitalism: Renewing the Entrepreneurial Strength of the American Economy," Mr. Schramm talks about the financial crisis and the recession that followed and how it underscored for us that a sustained recovery and higher long-run growth will require a heavier dose of entrepreneurship than we had previously recommended. This book lays out some concrete ways to do that. In the wake of the Great Recession and America's listless recovery from it, economists, policymakers, and media pundits have argued at length about what has gone wrong with the American capitalist system. Even so, few constructive remedies have emerged. Better Capitalism cuts through the chatter and offers a detailed, non-ideological, and practical blueprint to restore the vigor of the American economy. [more...]

Thursday, February 14, 2013

America’s Retirement Crisis Just Got Worse

Never before in America’s history has the writing been more clearly visible on the wall. After conducting a grand experiment of consistent deficit spending with a completely worthless fiat currency, the colossal economic failure created by our nation’s policymakers will simply be spectacular. For the last several decades, the basic underpinnings of our nation’s economic foundation have been subjected to one abuse after another from a whole host of mad fiscal and monetary "scientists." They have attempted to bend the most obvious economic laws. The result will be devastating to Americans who have failed to make the most basic financial preparations. [Here are the shocking statistics...]

Monday, February 11, 2013

What if the Economy Never Recovers?

There’s a growing portion of Americans who consider this a real possibility. It is common to hear people discuss 2% annual growth and 8% unemployment as the “new normal.” Respected economists like Robert Gordon even contend that our country’s franchise on innovation is being lost. Perhaps most alarming is that Americans between the ages of 18 and 27 have never known what it’s like to participate in a robust, growing, economy. The sentiment felt today is not unprecedented in history. During the Great Depression there was likewise a feeling that recovery might never come. It is assumed that we now really understand the events of 1929 and how the near decade long Depression finally came to an end. Clearly we do not; if we did, we would have pulled ourselves out of the current predicament by now. [more...]