Economists around the country think the U.S. economy isn’t going to be brought down by China’s economic woes. Economists like Christian Broda say the Washington political gridlock should be our major concern. Broda knows what he is talking about. He is a brilliant economics professor and the managing director of Duquesne Capital Management. Christian Broda looks at the whole economic picture and he says the United States must overhaul the tax code, and develop better trade agreements with other countries.
The current trade agreements are one-sided, and they must be reevaluated, according to Mr. Broda. He also said the American economy is growing, and we are creating new jobs, but most of the growth and the jobs are oil related, and that means the numbers are not an accurate picture of total growth. Broda also thinks the income disparity will become more of a factor in economic growth next year even though states and cities are raising the minimum wage.
The truth, according to Broda and other economists, is the American economy is in a stagnation period. Too many people are saving and not spending, and that limits growth potential. Plus the U.S. is not investing enough in its infrastructure, and that plays into the country’s growth pattern as well. The biggest issue with the lack of initiative concerning investing in the infrastructure of the country is the political gridlock, and that has the country in a state of uncertainty, according to many economists.
That uncertainty is playing out in the primary election process. Candidates with political backgrounds are being overlooked, and candidates with proven track records in business and other fields look more appealing to the American public. And that is a step forward in eliminating the silly backstabbing that goes on in Washington. Most economists think that the U.S. economy will not recover until the political gridlock is unlocked. That may not happen in 2016, but most people that focus on politics and the economy think the American political system will change within the next ten years.
When that happens, and the income disparity and the trade issues are corrected, the U.S. will begin to look and act like a thriving democracy again.