This post is outside of my typical realm, but I feel it's an important topic to address. It's sort of a rant, so bear with me. I've been thinking about the economy allot lately, trying to figure out how we got into this mess, and what we need to do to get out of it... I keep coming down to the thought that Americans need to produce more and consume less. If we are going to effectively produce products, we need to export them to the world market, instead of trying to rack up credit cards and debt of other Americans.We've got to stop pimpin' our wares to other Americans. In the past 20 years we've witnessed a boom of retail nationwide. There's a Walmart and strip mall on every corner, which depend on you and me to come down and purchase goods. Their location was strategically placed to generate the maximum amount of revenue from surrounding people. These locations were based upon population counts, anticipated growth, and household income. These provide jobs and goods which are necessary to our survival for the most part, however how much is too much? Do we need 4, 100,000 square foot Walmarts within a 10 minute drive? If Americans are getting more frugal, what population can support a Walmart supercenter? I'm pretty sure it isn't 4 within a 10 mile radius. More importantly, what happens when people stop spending as much… This is why we’re seeing an implosion in the housing, retail and big-box markets. It may sound like i'm picking on Walmart, but their just the best example. There are thousands of other companies that have grown to prominence on the same principles.
We need to change our reality... We need to produce more and consume less... It's a strategy that won't work as long as every job and company depends on other Americans wallets alone.
How can we produce more, if the market is contracting? We need to go International. The stimulus plan should include strategy to build jobs that export goods and resources to Middle East and other strong economies ... Sure, let's invest in infrastructure and energy for ourselves, but how can we export our technology and resources to draw revenue from outside our country? What about buying American? It won't work; we need to contribute to the global economy, just as they need to contribute to our economy. How can we make our goods more appealing to the international market?
Do we continue throwing money at industries (auto, retail, housing) that are built on a faulty model, a model dependent on overindulgent Americans?
Buy American... Sure, when you can.... but more importantly sell International....
I'm tired of hearing all the politicians running their mouths about the economy and stimulus bills that amount to nothing more than special interests. The fact is that most of them have no idea what their even talking about. They're just taking a stab in the dark, trying to help their friends while spending our money like drunken sailors. We need business leaders to step up and fix these problems quickly. The longer we wait, the bigger the hole our government and politicians are digging for us.
I smell an opportunity... I'm trying to think of 2 or 3 business ideas I can peddle to the foreign market. What do you think?



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