E US Consumer Spending Flashes An Alarming Call To Action

 

 

Organization for Economic Co-operation and Development, Total Unfilled Job Vacancies for the United States [LMJVTTUVUSM647S], retrieved from FRED, Federal Reserve Bank of St. Louis; April 6, 2019.

We can see that Amadeo's solution is not a solution in search of a problem. Education in the USA is becoming a real problem. Amadeo does not believe universal basic income is an answer. She did not comment on Milton Friedman's helicopter money, which could help Main Street, in addition to education.

As Dr. Dan Clinciu, founder of the HET forum has written:

 

Why is it that such a large number of Americans prefer to live abroad, could care less about the “American dream” and aren’t interested in filling available jobs even though quite a few are well qualified and get paid less abroad? Besides no longer believing in the American dream these days, their reasons are quite compelling!

While I believe that some of Dr. Clinciu's reasons for living outside the USA are exaggerated by him, certainly there are issues with safety, transportation and quality of life in many parts of the USA that do not exist elsewhere. Education and better job prospects are key. 

And certainly, the amount of expats living abroad is difficult to measure. However, as we see from the chart above, there are 7,335,000 jobs going unfilled. Looking at the American Diaspora, it is difficult to count, but there could be close to 10 million expats living abroad. How many are of working age and have the correct skills are hard to measure.

Since Americans are double taxed in foreign lands, some have renounced citizenship.

Therefore, education for those that come to the USA, the children of  immigrants, should be a priority in America. Yes, it is unlikely, as Dr. Clinciu says, that those immigrants will take the skilled jobs left behind, although perhaps some could. But their children certainly could learn to do so. There should also be a stepping up of immigration for skilled workers but the present president does not seem to understand this need for skilled workers.

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Disclosure: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment ...

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Gary Anderson 10 months ago Author's comment

#Update: Even with a 3.2 percent GDP for the quarter, consumer spending remains weak. Inventory buildup drove GDP, not consumer spending.

Gary Anderson 11 months ago Author's comment

See also a study about purchasing power parity that helps explain the power behind the Chinese growth engine: talkmarkets.com/.../china-ppp-aiig-bank--powerhouse-economics

Livius Dan 11 months ago Member's comment

Gary, feel free to ask other Americans that live outside of the USA whether or not I'm exaggerating. They'll beg to differ. Many I know personally do not want to ever come back. Besides, I have provided references, one in particular mentioned major waiting lines for US or former US citizens to get residency and citizenship in Switzerland. One of the biggest issues that concerns me about the US currently are invaders from 3rd world countries both legal and illegal, most of course uneducated as Gary points out. I guess we'll have to see what happens!

Gary Anderson 11 months ago Author's comment

I don't consider families to be invaders. If anything, America is financialized, and the nation could benefit from the innovation that immigrants can provide for real world jobs. We can't compete making simple widgets but why not try to educate the immigrants quickly. The government should do this in the national interest.

Livius Dan 11 months ago Member's comment

You can't educate anyone against their will. Education is a cultural thing. Not all the world and cultures feel the same about education.

Carol Klein 11 months ago Member's comment

People should value education more. Ironically, many need an education to realize that. The solution is to make it free.

Gary Anderson 11 months ago Author's comment

Of course you can't. But Dan, we are the richest nation in the world. We can't fix our potholes. We spend little on education. China brought 500 million people out of poverty. We are richer, and we need to do better.

talkmarkets.com/.../belt-and-road-the-sri-lanka-china-port

Dan Richards 11 months ago Member's comment

If we stopped sending billions of dollars to countries that hates us every year, we could fix all the potholes we want. And education, healthcare, etc.

Gary Anderson 11 months ago Author's comment

Or, we could increase economic activity by helping our neighbors with infrastructure, not money, and earn our pothole repairs. China is doing just that.

Livius Dan 11 months ago Member's comment

You hit the nail right on the head Gary. We will do better when we assume responsibility as a nation and as people. As long as we have affirmative action and do not treat everyone equally based on merit and not on some entitlement issues some think they deserve, we'll never do better!

Gary Anderson 11 months ago Author's comment

There are some talented people who come from Affirmative Action who just need the opportunity. You think you will solve everything with tired right wing solutions. But there really needs to be more educational opportunity for more people.

Harry Goldstein 11 months ago Member's comment

While better education is key, I believe that there is a deeper problem - lack of work ethic. The newest generation seems to have a sense of entitlement, and a desire to make a quick buck. How does one fix THAT problem?

Gary Anderson 11 months ago Author's comment

Many saw their parents work hard only to be swindled by Wall Street in the housing bubble and crash. The resulting Great Recession and Fed tightening reduced wages, making it very difficult for millennials. If what you say is true, Harry, then America should be ecstatic that immigrants would want to come to our nation. My experience with immigrants in the farm community is that they can work circles around Americans. That Donald Trump is ignorant of this fact makes it certain that America will fall short of our own business needs.

Harry Goldstein 11 months ago Member's comment

I said the next generation is entitled and perhaps somewhat lazy. I didn't say they weren't racist! Seriously though, you do make a good point.

Gary Anderson 11 months ago Author's comment

No, I agree. I know you didn't say that. If what you say is true about their work ethic, ultimately, then there are others who will come and work hard.