Reply #3: Government fixes

[Coryoth]

The real problem with this is that there aren't any easy government fixes, which is why these issues aren't being discussed. Certainly the government could try to reduce the deficit - but both Bush's and Kerry's plans to reduce the deficit were based on the presumption that growth would continue, and in fact increase. Even the Democrats aren't prepared to face the facts and make the cuts.

The bigger problem is personal/household debt. The US is at an all time low for personal savings - and that is a large part of the pressure blowing out the current account deficit. Unless individual citizens take it upon themselves to help reverse that trend things will only get worse. The other problem is the whole concept of such consumer oriented growth - US GDP growth is very consumer focused, and that is why you get all those silly "Shop for America" campaigns after 9/11 and other assorted nonsense. The US has become dependent on consumer spending to grow. The fact that people have already spent themselves into debt (which is why they have no savings) is precisely the problem.

Jedidiah.