Saturday, June 13, 2009

Brooks on Economics

The New York Times' David Brooks writes about what he calls The Great Unwinding. By that he means getting the U.S. back out of a leveraged, debt-financed consumption economy and into an investment-driven, savings-generating economy.

His column does a nice job of laying out how we've gotten into the problem and what we need to do to get out of it. Only in the last couple of paragraphs does he admit that it is unlikely that we have the political will to do what is needed. He concludes:
Congressional leaders have been fixated on short-term conventional priorities throughout this entire episode. There is no evidence that the power brokers understand the fundamental transition ahead. They are practicing the same self-indulgence that got us into this mess.
We elect Representatives for two year terms and then expect them to take the long view? I don't think so. Getting change to happen will take real leadership, something I don't see on the horizon.