GET THE FACTS BEHIND THE NEWS
Elizabeth Warren head of the oversight panel setup by Congress to monitor the Federal Bailout says, “THE GOV’T STILL DOES NOT SEEM TO HAVE A COHERENT STRATEGY FOR EASING THE FINANCIAL CRISIS.“ Instead the gov’t seemed to be lurching from one tactic to the next without clarifying how each step fits into the overall plan. .
One of the reasons for Ms. Warren’s observation is the US does not have an economic strategy. Yogi Berra a modern day philosopher has observed. “If you don’t know where you are going you may not get there. “
Why does Prof Porter, Harvard School of Business Professor, believe what has driven our success is starting to erode?
There are probably several reasons. Two reasons that are part of the sme problem stand out.
1) As Prof Porter notes the American political system has evolved with piecemeal reactions to current events. The means that the effect of a decision, or the cumulative effect of several decisions from various parts of our economy or political system are not examined for their effect on the whole system. The effects on the whole could be bad, good, negligible.
2) Decisions made for the purpose of changing the economic system, such a tariffs, anti-trust laws, oversight provisions etc. frequently take into account the immediate industry or situation rather than considering the overall and long run effects.
The US needs an economic strategy. More later.
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