

Japan. 1980's xenophobia that they were taking over. Then suddenly, 1990 - 2002; lost decades. It started with real estate speculation. Due to demographics and a small amount of land mass; too many old people, who need social safety nets, outweigh a younger population to support them. They have more than twice the amount of national debt to GDP (gross national product). Interest rates have been low, because 95% of their debt, is owned by their savings-culture population. Aging demographics, though, are quickly turning their population into net spenders. There are not enough younger people to buy their sovereign bonds. And there is no land to supplement with immigration.
Europe. The Euro became a threat to U.S. dollar supremacy in the 2000s. The Euro went, from less than a 1:1 value-to-the dollar; to 60% more valuable to the dollar in ten years. Then it plunged. Their aging demographics can't keep up with their social safety nets. They don't have enough land mass to fix the problem with immigration. Their people density is 3X the U.S.
America. We owe one-times the amount of our GDP. Our age demographics skew against our social safety nets. Like Japan, we have had a lost decade of little economic growth. In 2008, the country imploded from a real estate bubble. We have the same problems, that Japan and Europe have.
But we have the landmass to support 3X the amount of citizens. We draw the best-and-brightest to our shores because of the world's best universities. These "smart immigrants" want to stay. We tell them they need to leave. All we have to do - and what Japan and Europe can't do - is let them stay. We can balance our budget by letting smart immigrants become tax payers. We can fix our real estate problem by having 3X the demand for housing. We have all the tools to ensure prosperity - though a smart immigration policy - because immigrant's are attracted to, the great "melting pot" of America.
We either can make an unforced error and become another Japan and Europe. Or we can use our unique strengths, to easily transcend our weaknesses. Be you a conservative or a liberal or an independent; there is no issue more important to our economic future than immigration reform.
Stop listening to sound bites. Demand rational immigration reform plans before giving people your vote. If you don't - even though we have all the tools to not become Japan or Europe - we will all lose!
January 25, 2012 | PERMALINK | COMMENTS (1)
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Looks like the United Kingdom is in recession.
http://www.econbrowser.com/archives/2012/01/uk_into_recessi.html
Posted by: brianfromohio | 01/26/2012 at 07:10 PM