Where is the US economy headed?

Ragman
Yes, American manufactured marterials should be used unless it is not available. As an example all of the steel used in these projects should come out of American steel mills. That in effect is how construction helps all it's allied industries.

January 17, 2008, 5:00PM EST text size: TT



DON'T COUNT ON EXPORTS

Unfortunately, other potential sources of economic strength are not nearly as promising. For example, business investment won't be a big help to economic growth in 2008 as many U.S. companies rein in their technology purchases. And don't count on exports to bail the U.S. out, even with the weaker dollar. With European growth apparently slowing, demand for American-made goods overseas could slacken as well.

By contrast, the demand for education and health-care workers is still rising. Just a few years ago, in 2002, the Education Dept. published projections showing that elementary and high school enrollments would peak in 2005. Now the number of students is 2 million above its supposed high and still heading up. The same is true for enrollment in higher education.

In fact, health care and education have accounted for about 63% of total job growth since the last business cycle peak in March, 2001. Together they have created 3.7 million jobs. By comparison, the next biggest source of new jobs, the leisure and hospitality industries, added only 1.7 million.

So far the expansion of health care and education appears to be just enough to counteract the drag from the housing bust and the consumer crunch. Consider this: Banks, mortgage brokers, and other credit intermediaries have added roughly 350,000 jobs since 2000. Even if all those workers were fired, that would just be equal to seven months' growth in health and education.

But what if the economy still begins to slide into recession? Then policymakers have several choices if they want to try fiscal stimulus. They can offer tax cuts, like President George W. Bush did during his early years in office. They can provide aid to homeowners facing foreclosure or high energy prices, as Hillary Clinton has suggested.

Or policymakers can do something different: boost outlays on education and health. Remember that in the 1930s, John Maynard Keynes forcefully advocated the idea that government spending could bolster the economy in a downturn. Today, increasing federal health and education grants to the states, while politically controversial

we are heading for a hard landing.

Let me wish that US Economy flurish.
Let the Economy start from the scratch and let the local potatoes have some fun before being grilled/ boiled/ seasoned.

Let me appeal all the legal/ illegal/ greencard holders to seek job elsewhere and allow the Americans in peace.
They need peace and be grateful for your stay there.

hamburger

Did newsweek perhaps mention where the funds would come from to support the education and medical spending was to come from.

au wrote :

Quote:

hamburger

Did newsweek perhaps mention where the funds would come from to support the education and medical spending was to come from.

if you read the report you may have read the dirty word : TAXES !
if there is plenty of taxmoney to bail out failing financial institutions - through manipulation of the prime rate - and the war , might there be an argument for taxes to be used for education and healthcare ?
perhaps that mighht be considered as "revolutionary" ?
hbg