The real effects of the controversial tax reform will become evident with time and there are intellectual heavyweights on either side of the debate. The issue at the heart of the reform is the challenge that America poses the world’s economic powers in the race at claiming global economic dominance.
Demographic trends show the southern shores of the Mediterranean growing much faster than the northern shores, which will have a great impact on migrant labor. Human capital training and mobility will be key integration factors in the labor markets.
China is now poised to become the world’s dominant economic force. Nevertheless, many factors – political and cultural – must still align themselves if it is to live up to its enormous potential.
Demographic factors affect where the money of the productive population goes. If too much is spent on non-working dependents, there is less for investment. To mitigate this situation, a coordinated effort is needed between government and business to teach new skills.
The global recession has made finding viable economic solutions a matter of utmost urgency. It has also shed a new light on the traditional dispute between Keynesians and monetarists. Could the time be nigh to abandon such ideological polarities?
Fixing the economy will require increasing the capabilities of those entering the work force. To avoid saddling them with all the burden of debt will require opening up opportunities through freer markets.
For decades developed economies have been increasing consumption with money lent to them by producers to buy their goods. This vicious cycle is clearly unsustainable, but go explain that to the economists.
The cost of bailing Greece out through the creation of new European debt instruments is minimal compared to the catastrophe that will ensue after markets lose confidence in the eurozone – or the US. But lack of political will may spell doom regardless.