E Caterpillar Confirms Kalecki's Historical Truth About The Business Cycle

Trump wanted to be included in that partnership after the fact. He realizes that as markets close, American dominance fades. It is beyond the scope of this article to determine if the Trans-Pacific Partnership was a good deal for America. But as Tassey clearly points out, no deal is a bad deal for American technology.

Tassey is clear, the US became great by out investing everyone else in the last century. Kalecki says lack of investment leads to weakness in the economy. That lack of investment is why our economy has never gotten back on track after the Great Recession. Ours is an economy driven by speculation and by a temporary utilization of capacity, both in tech and industry.

Innovation is put on the back burner. Only 3 percent of growth in America between 2010 and 2014 came from rural America. That is a very low number. The tax bill did include provisions to encourage growth in rural America. But one wonders if it will work if industrial companies like Caterpillar refuse to build factories in their own backyards. And it is unlikely that technology would ever relocate to rural areas because of a lack of skilled workers there.

When traveling through Utah on vacation,  I was struck by the amount of small towns tied to energy development. Industry and technology were lacking. All that kept these little towns going were agriculture and the better paying energy presence. Energy jobs may be fleeting as it is a commodity subject to price fluctuations due to supply and demand worldwide. Clearly industrial production and technology production can be more stable than reliance on energy.

So, from a political perspective, the Democrats want to redistribute growth downward while Republicans want to redistribute growth upward. Neither party is committed to growing the American economy. Donald Trump clearly is less concerned with technology than he is with industrial production. He wants the good old days. But even industrial production is limited by capacity, and there is little being done on either front to change all of that.

While the Democrats' plans are incomplete, Republicans are more interested in setting the table for speculators and cronies and the Wall Street casino, rather than for real business. They are more trapped by the New Normal than they would like to admit:

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Disclaimer: 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 advice. The ...

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