The problems are deeply systemic and won’t be solved until two things happen:
1. Immigration is restricted. We can’t get past the #1 issue in the labor market that the supply of employees is growing faster than job growth, and that just makes all the other fiscal problems worse. We need to create 150K jobs/month JUST to keep up with population growth, and most of that population growth comes from immigration.
2. “Free trade” has hollowed out the US economy and shipped entire industries off-shore, resulting in a facade of an economy in the form of “service sector” jobs, which are very easy to create... but also often very non-essential and easily eliminated as people decide to not engage those optional services and either do without or do for themselves.
I’ve been talking with my partners about a new division we’re opening up in the business. I say we hire ONLY veterans due to the 3D factor(dedication, determination, discipline)They say we can’t; it’s discrimination. I said: “Watch me.”
3. The debt overhang must be reduced to a manageable level through ongoing deleveraging. Nothing will solve that but a decade or two of time.