We (and by ‘we’ I mean my friends at the Progressive Policy Institute) have been talking a lot recently about the need for the U.S. to shift from a consumer economy to a production economy. (See for example here, here and here).
We are mighty pleased to see President Obama shifting in that direction. Here’s a quote from one of his latest speeches.
…over the last decade, we became a country that relied too much on what we bought and consumed. We racked up a lot of debt, but we didn’t create many jobs at all.
If we want an economy that’s built to last and built to compete, we have to change that. We have to restore America’s manufacturing might, which is what helped us build the largest middle-class in history. That’s why we chose to pull the auto industry back from the brink, saving hundreds of thousands of jobs in the process. And that’s why we’re investing in the next generation of high-tech, American manufacturing.
That’s a production economy, Mr. President.