Posted tagged ‘wind power’

Already Discounted

April 26, 2010

Headlines in todays papers cry that the “signs” all point to the end of the recession. You might ask, especially if you are unemployed or a public service employee awaiting a pending layoff due to budget shortfalls, what “signs”?

One sign is the stock market which is now above 11,000 and looks like it still has a lot of momentum. The sages say the stock market is always priced at what the near future will bring, they say it has already discounted the recovery and its high price reflects that.  If the market keeps rising, sages predict a stronger economy and more jobs.

More traditional economists point to factory inventory levels and orders placed upon these factories. These indicators, too, are positive because inventories are low and orders are beginning to mount up. Businessmen do not want to lose orders and will react by running their factories more. In short they will hire workers and buy more from others who in turn must hire more workers.

Memories are short. Most workers remember the last boom driven by the housing industry. New homes coupled with the real estate boom combined to both employ a lot of Americans and to create the allure of increased wealth through property appreciation. The lesson that should have been learned is that there are only so many houses that Americans can afford so building more does no one a favor. Another lesson is your house or property is worth only what someone else will pay for it. I wonder whether the market has discounted these realities too?

Balance holds the keys to the future. Our economy needs some value creating engines that will produce earnings and enable workers to buy other goods and services. We can’t all work at Starbucks, and we also cannot all build houses.

Alternative energy projects offer one of the greatest areas of new jobs and new wealth creation. From sequestering carbon dioxide from the burning of coal to the conversion of wind and solar energy into electricity to power our cars, heat our homes, and light our paths, these type of projects can be game changers.

General manufacturing (anything from underwear to toys to furniture to garden equipment) should also be a candidate for new jobs. These jobs probably won’t look like the ones that once existed here before exiting to China and other southeast Asian locations. They will need to have a higher “tech” component that in turn will allow manufacture at quality and productivity levels that can support good pay and competitive prices.

Both of these sources of new jobs will not be overnight happenings. They both require time and patience. They both will require a steady hand to guide the necessary investments with a promise of an adequate return. They both can support an American manufacturing rebirth.

I wonder whether the market has discounted these too?

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