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http://www.economist.com/specialreports/displayStory.cfm?story_id=15793036
Here is a great summary of what's been going on in the crisis in America with an analysis of what the future will hold for our country. To summarize where this article is going towards: "this was no ordinary recession. The bubbly asset prices, ever easier credit and cheap oil that fuelled America’s age of consumerism are not about to return. Instead, America’s economy will undergo one of its biggest transformations in decades. This macroeconomic shift from debt and consumption to saving and exports will bring microeconomic changes too: different lifestyles, and different jobs in different places."
I think this is really true. We won't quite go back to the way things were. This recession is slightly different from others in the past in that we'll need an entire macroeconomic change. The article also talks quite a bit about an increase in exports being a major solution for the future. Do you agree with where the author thinks we're headed?
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I think the point about the gas prices is an important one. At some point we will reach an environmental carrying capacity (peak oil) and will be forced to move away from fossil fuels, the energy that has carried us most of the way through the industrial and information revolutions. I think environmental and demographic change will have much more lasting impacts on economic production than macroeconomic change in terms of a shift to a service based economy and what not.
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