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Entries tagged as ‘Economy’

Change is slow

Tuesday June 10, 2008 · Leave a Comment

(Written May 6, 2008)

The end of the Cold War. Germans dancing on the Berlin wall. The United States breathes a sigh of relief; The great Communist empire has fallen, now we’ve only Cuba left to deal with. How hard can it be, after all, to starve a small island nation into submission? The hippie movement – already creaking under the strain of children, jobs, real life – finally bends its knee to the inevitable; flashy technology is more addictive than hard drugs. Baby needs shoes. Bill Gates gives this talk to the Computer Science Club at the University of Waterloo – discussing, among other things, floppy drives, and the upcoming move from 8 to 16-bit computers.

And Russia? Russia flings away its satellite states, willingly lets go her hold on the Middle East – especially Afghanistan, Russia’s Vietnam during the warmer days of the Cold War. Russia turns inward for almost 20 years, accepting a lack of dominance, a lesser place in world affairs, letting a hand – or two – go by in the great-stakes game that is International Affairs.

Fast-forward to the mid 2000’s – Russia, resurgent. In a February 28, 2008 article titled “Smoke and Mirrors,” The Economist styles Russia’s economy ‘booming,’ citing a 7% growth rate, and stating,

…Even Mr Putin’s critics are impressed by Russia’s transformation in the past few years. A country that almost went bust ten years ago now boasts a $1.3 trillion economy, foreign-currency reserves of nearly $480 billion and a $144 billion stabilisation fund for surplus oil and gas revenue. Annual growth of real incomes has been in double digits. GDP per head has risen from less than $2,000 in 1998 to $9,000 today at current rates of exchange…

Russia even ranks fourth in the world in the creation of new millionaires, and while it certainly has its share of problems – falling fertility counts, infrastructure issues, and high inflation rates among them – it’s safe to say Russia is making a strong reappearance on the world stage.

In 15 years, in other words, Russia’s transformed itself from an international pariah into an up-and-coming powerhouse. The transformation has not been easy, and could not have been made without a deliberate stepping-down, an acknowledgment that even Russia – with her power, might, and vast natural resources – couldn’t continue as she was. A Cold War analyst- Soviet Side – was quoted saying Russian politicians realized they could build bombs or they could build Russia – but that they couldn’t do both at once.

And so Russia turned inward. Millions of people suffered. Political upheaval. Social upheaval. Unrest, riots, deaths. And today, she’s stronger than before.

I think we’re rapidly approaching a similar decision point in the United States. Do we build guns, or capital? Do we build other nations, or our own?

We’re a state – not a nation. (state implies political borders; nation, emotional ones). As citizens, we’re fundamentally divided on far too many issues. The top 10% lives very well, but things are getting harder for the bottom 40. The American Dream is poised to turn into a nightmare, along with the crash of Social Security, an eventual revaluation of the Chinese Yuan, and a rise in socialized medicine. School systems are faulty at best, a breeding ground for disillusionment, at worst. None of this is to say we’re out – just that we’re down; we can’t continue to ignore problems at home, and expect those issues to be solved, as they have in the past, by our position at the receiving end of the so-called ‘brain drain’ – it’s no longer working in our favor. Indian engineers are choosing to stay in India, as conditions rise for them there.

And so: We get to choose our own fate. Here’s a thought: What if we lean heavily on China, India, Brazil, France, England, etc, to form a serious coalition on banning – and preventing the gain of – nuclear weaponry? What if we accept that we’ve made nothing but poor choices in the Middle East, and throw as much money as possible, now, at the fuel problem, pull out of the Middle East as soon as it’s economically – not image-wise – feasable. What if we turn inwards for a while, and build our infrastructure, our economy, our sense of national identity? What if – for the first time since the early 1940’s – we focus on #1? If the only thing we insist on, on the world stage, is nuclear weapons?

So we lose standing in the world economy. So we lose trade networks. So we lose influence – but much of that we’ve lost, already. We can get it all back, but not if the center is weak.

Categories: Politics · US Policy · United States
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It costs $42 billion to arrest potheads…?

Monday October 1, 2007 · Leave a Comment

… the problem is, of course, that if we stopped making these arrests (like Canada and Amsterdam?), the gov’t would just throw that $42billion right into the War on Terror(ism). Maybe this is a better use of our resources … (hah)

See article from Forbes.com here: Marijuana’s $42 Billion Question

The U.S. marijuana is a $113 billion annual business that costs taxpayers $41.8 billion in enforcement costs and lost tax revenues, according to a study to be published later Monday.

(aren’t there better things to spend money on?)

Also, an interesting site on policy/drugs/etc: http://www.drugscience.org/

Categories: Drugs · Money · US Policy
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“U.S. debt stood at about $5.6 trillion at the start of Bush’s presidency…”

Monday October 1, 2007 · Leave a Comment

A Reuters article about the U.S. Senate raising our credit limit.

Does this seem incredibly shortsighted to anyone else? It’s like my Dad says, I suppose: “I don’t know a lot about economics, but I know that eventually, someone has to pay for this”…

UPDATE 1-U.S. Senate agrees to raise U.S. credit limit
Thu Sep 27, 2007 8:36 PM ET

(Updates with vote, details)

By Donna Smith

WASHINGTON, Sept 27 (Reuters) – With the U.S. government fast approaching its current $8.965 trillion credit limit, the Senate on Thursday gave final congressional approval of an $850 billion increase in U.S. borrowing authority.

The Senate voted 53-42 to raise the debt ceiling to $9.815 trillion, the fifth increase in the U.S. credit limit since President George W. Bush took office in January 2001. The U.S. House of Representatives approved the higher debt limit earlier this year as part of the overall budget resolution and the legislation now goes to Bush for his signature.

“We have no choice but to approve it. If we fail to raise the debt ceiling soon, the U.S. Treasury will default for the first time in its history,” said Senate Finance Committee Chairman Max Baucus.

“Plainly, especially in this credit crisis, we cannot let that happen,” the Montana Democrat added.

The U.S. Treasury Department has been pressing Congress to pass the debt increase quickly. Last week Treasury Secretary Henry Paulson said the government would hit its current $8.965 trillion debt limit on Oct. 1.

But Sen. Tom Coburn, an Oklahoma Republican, urged lawmakers to reject the debt increase and concentrate on spending cuts instead.

“Families across America don’t have the luxury of loaning themselves any money when they’ve maxed out their credit. But that’s what we’re going to do,” Coburn said.

Lawmakers said the $850 billion increase in borrowing authority, the second largest since Bush took office, should be enough to last the government through next year’s congressional and presidential elections.

U.S. debt stood at about $5.6 trillion at the start of Bush’s presidency.

“Increasing the debt limit is necessary to preserve the full faith and credit of the United States of America,” said Iowa Sen. Charles Grassley, the senior Republican on the Finance panel. (Additional reporting by Richard Cowan)


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