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Michael View

Why Obama Got It Wrong!

10 January 2010

Holidays give me time to do some thinking and a little crystal ball gazing.

Like you, I‘m a small business owner and a service provider. Most of my clients are small business owners, but Obamanomics will impact us all regardless of company size, manufacturer or service provider.

Like it or not the American consumer drives the world economy. They buy stuff that keeps factories in China running 24/7. Clothes, computers, large-screen TVs ‘" all made off American shores, mostly in Asia. The trade deficit between the U.S. and China has always been lop-sided, and now, the U.S. owes the Chinese government two trillion dollars. A child born in the U.S. today OWES approximately $36,540 at birth!

The U.S. has become a debtor nation, in effect, the world‘s largest banana republic.

And this has thinking Americans worried. U.S unemployment is running at around 10%. Unlike us Aussie spenders, America has become a nation of scrimpers and savers, not buyers. Many are running scared, afraid of losing their jobs. Every American knows someone who‘s been laid off or down-sized and that has a sobering effect on the buying, spending and saving habits of the largest consumer society in the world.

(Were it not for the Rudd socialist stimulus packages I suspect I would be writing this about Australia. But that article will come later this year after more interest rate rises and those holiday spending credit card bills hit home.)

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