Growth

Read a blog today that argued that there will be no real growth in the California economy for many years to come and by extension none in the US economy as a whole.

The argument centers around the fact that our two primary post war growth industries, housing and automobiles, are both unlikely to show any growth, and without that stimulus, overall growth will be stagnant. I agree that we need to adjust expectations in both of those industries, but think that it will take years to absorb excess housing, unless we simply raze much of it and reuse the land to grow biomass for bio fuels, I believe that the automotive industry has an opportunity to grow as we replace our current fossil based vehicles with vehicles that run on electricity, bio diesel or natural gas. In addition, the development of infrastructure to supply that fuel and delivery systems hold tremendous potential.

Further, while we have enough housing stock, I believe there is ample opportunity to incentivize energy remodeling that will sustain much of the construction industry. Use of solar panels to reduce electricity needs, better insulation, more efficient appliances and conversion of heating systems to more efficient ones can create jobs.

This growth is an offshoot of the need to develop a renewable energy imperative in this country and the development of industries to make it happen. Solar, wind and conversion of bio mass and/or coal into clean alternatives will reduce our balance of payment problems and create a tremendous number of jobs.

There isn't really a choice about this change in the long run, but if we continue to send wealth offshore only so we can borrow it back because it has a short term cost advantage, we, as a nation are being short sighted. The Government can influence this by reforming the way we collect taxes and while continuing to promote world trade, make sure American industries are not put at a disadvantage.

For those who see gloom and doom because of some of our current problems, that were exacerbated by those who failed to follow up on the initiatives from the 1970s, realize that this country has tremendous potential still and simply needs to reform our energy and tax profile to realize it.

Time to get started.