Thursday, May 03, 2007
Going Their Separate Ways...
Here is something short and sweet (or sour, as the case may be) from Robert Reich. He quite succinctly identifies the reasons why the stock market is booming at the same time that the American economy is growing "at its weakest pace in four years." One, the world economy is no longer dependent on our economy, allowing China, India, Japan and Europe to go gang-busters while we languish. Two, the fortunes of American corporations have been similarly decoupled from the fortunes of the majority of the American people. Even when the performance of American companies falters domestically, they are sufficiently capitalized overseas to participate in the foreign economic boom. Corporate tax cuts feed this foreign capitalization, and the people of other countries benefit rather than our own.
"Double Decoupling" from The American Prospect