The Debt ceiling crisis will pass; even if there is a crash, the USA can recover from it …
IF its core economic worth, that is its industrial productivity, is unharmed.
There are a number of ways this can be harmed, poor credit rating among them, lack of availability for investments.
But “off-shoring” has done a lot of harm, not because its bad, or any worse than Hammer’s “downsizing” was in principle. In practice there was a feeding frenzy and both were taken to excess and applied inappropriately and to a degree that was harmful. But then the USA has always had the attitude that if a little is good, a lot must be great.
Its how it legislation works and how cars and cities worked. It is hard to convince them otherwise.
But there gets to be a point where the engines of industry all get exported.
Look what happened in the UK.
Yes, Post-war England could not support being the heart of the empire; it had to let go of heavy industry since it no longer had cheap labour and the market for its products. But it took over 30 years and a lot of social and economic damage for the country to get with a new agenda; light engineering and knowledge-work. People don’t want to admit it, but Thatcher did a turn-around, shut down steel and shipbuilding and mines, all of which were lame ducks, nearly shut down the motor industry which was almost in the same category (but the mass unemployment resulting form that would have meant too much UI payout)
The resources released, the retraining resulted in a burst of economic growth that amazed Europe and made Maggie hated.
Sadly the Brits as a nation didn’t get the message, they thought everything was still all right, and continued downhill after she was gone.
The USA has an incredibly mixed economy, just like it has an incredibly mixed ecology. Like the post are UK, the military deployment is a massive drain, but the UK cut back after Suez. Like the UK, the USA has seen that its auto industry can’t really compete, but also that it can’t afford to shut it down either, and won’t let it die a natural economic death.
Like “The City”, the USA sees “Wall Street” as being more important than the man on the street.
In a way, the Patent Trolls are parasites. They don’t add economic value, they impede industry and innovation, and foster the wealth of a sector that has no contribution to the core ongoing wealth of the nation – the lawyers.
Jacking up prices to the consumers to cover legal costs and licensing fees is clearly inflationary.
This is not good for the economy of ANY nation.
- ‘This American Life’ tackles patent trolls, lives to broadcast about it (engadget.com)
- Connection Between Patent Troll Lodsys and Former Microsoft CTO/Microsoft Proxy Highlighted (techrights.org)
- patent trolls and innovation (orgtheory.wordpress.com)
- Patent Trolls Drive App Developers from U.S. Market (eff.org)
- When Patents Attack – the NPR Version (yro.slashdot.org)
- Mainstream Press is Turning Against Software Patents (techrights.org)
- Microsoft Did Sponsor the World’s Biggest Patent Troll (More Lawsuits Come), Paul/Troll Allen Loses Case (techrights.org)
- Patent troll Lodsys files more lawsuits (teleread.com)
- Software Patents Might Inevitably Die as Economic Impact is Realised (techrights.org)
- The cost of patent trolls (blogs.reuters.com)