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Wednesday, December 9, 2009

The Largest Possible Stimulus, An Answer of All Answers

As we continue into the bleakness of economic outlooks, us bloggers, more than anyone else have been bullishly describing our predicaments and the short comings of private sector and especially government. Before I get shredded, let's look at the possibilities of a stimulus of all stimulus, this would be the stimulus that keeps on giving. As we did in the past during World War I and especially during II, starting from scratch and overnight growing and re-establishing our manufacturing a new US Manufacturing powerhouse. Furthermore, this is the gift that keeps on giving because jobs would be created immediately in all sectors. As a continuation of my comment on Paco Ahlgren's, "The Destruction of the Dollar: It's Nearly Inevitable" on Seeking Alpha, I will start with the comment below:

Here's the link if you like:
http://seekingalpha.com/article/176855-the-destruction-of-the-dollar-it-s-nearly-inevitable?source=commenter

COMMENT:
Anything can be done. Instead of bringing back manufacturing, we need to rebuild manufacturing, like Japan's rebuild after the war. I have no doubt in my mind that we can again be and are innovative and that this innovation can be applied to a new manufacturing sector far more advanced than anywhere else in the world. The rebuild would require more education and lots of money. When setting the budget to rebuild manufacturing, we need to set the budget by high balling rebuild costs and low balling expected initial revenues. Especially since government involvement would be apparent, who we all know are horrible at forecasting and setting budgets, which in turn causes bickering between parties about costs and more costs because of one party wanting to stop and the other wanting to go, you know the usual. Just set costs high and do it right. In addition, in the planning phase, a large percentage of the budget needs to be allocated to R&D and re-investment into capital improvements to keep us ahead. However, things of concern are how many jobs would this create? With the newest innovative ways comes a whole lot of automation, man vs machine for jobs and to make us more competitive on cheap labor pricing. However, this would still bring a lot of jobs in logistics, sales, engineering.... Would our current services workforce be able to handle this shift or would we simply be bringing more people from abroad to fill these positions? Of course with any single thing we add, a hundred more questions come up. Lol, I could probably think and write about this for a while, but I hope we can get this subject rolling, so I will help facilitate. Well, I hope.

Please comment back to add, re-think or debunk any ideas. Another factor I left out in the comment was, location or the possible optimal places in the United States for the rebuild. Could we do it in Detroit and the other rust belt cities? Detroit has good train transport intersections... It would probably be cheaper to rebuild from scratch, but let's keep in mind re-vitalization. Also, take into consideration funding, both private and public. Let's answer the who, what, where and whens. Maybe afterwards, I can compile the great ideas into one single page. I am simply seeking our creativity from the SA community, which drives innovative thoughts. I think the possibilities of solutions with a great community with diverse backgrounds are endless.

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