Wednesday, April 22, 2009
US demand (Kauppapolitiikka)
Latest from Dr. Dan Steinbock, ICA Institute Research Director of International Business:
In his new brief for Kauppapolitiikka, the prestigious bi-monthly of Finland's Ministry of Foreign Affairs, Dr Steinbock argues that "U.S. demand has collapsed, but not disappeared." True, American consumer is now anxious, indebted, and exhausted. Among the G7 nations, however, U.S. consumption is better positioned to thrive over time. In fact, he argues that "those who argue that export-led growth has disappeared or that the U.S. demand is now gone assume – mistakenly – that a recovery is identical with the death of the patient." Not only will U.S. population grow faster and be more populous over time. The nation will be more diverse racially and ethnically by mid-century. Certainly, it will be older as well, but – as long as the inflow of immigration will continue – graying demographics will not cause the kind of dislocations that are almost inevitable in Japan, Germany and Italy.