– US is going through fundamental economic changes due to globalization and technological innovations.
– The winners are corporations, entrepreneurs, skilled workers, financial intuitions and banks. The losers are unskilled workers, workers with not-relevant skills, under-capitalized small businesses, and they turn out to be majority of US population that build up as middle class since the time of mass manufacturing jobs during the industrialization age.
– While free trade in theory is always good, in practice countries need to embrace it with thorough preparations and long-term plans as it opens it markets to global economy. Successive US governments, in particular with emphasis on trickle-down economics policy, failed to prepare US majority of population and the country to successfully compete and gain benefits in global economy.
– While there is no doubt that many of the US companies are most innovative and productive in the world, majority of the middle class population that was built on old industrial age economic model, are suffering due to lack of relevant skills, financial literacy to benefit from financial markets and growing corporation profits, and broken immigration that stifle growth of entrepreneurship and job creations. Government needs to create equal opportunities for its citizens by investing in its people, which is not redistribution of wealth as often accused by some right wings.
– In the long run, I believe in market economy where people taking care of themselves, as Lee Kwan Yew said “No welfare state, but fair state”. However, in the current unusual dire state of US economy with unequal opportunities for its citizens to prosper in global economy, trickle-down economics will be a recipe for a failure in long-term, with possibility of pushing US to downward path further. Instead, asking wealthiest Americans who already seen tremendous income growth as winner in this global economy, to contribute in investing in American people as a whole through more spending in education and research, infrastructure is essential now and for a foreseeable a decade or so until most Americans are well prepared and equipped with skills and other equal opportunities to prosper in the context of global economy.
– Therefore, although Obama is not personally coming from strong career background related to economics before becoming president, his policy in regard to economy is on right path than trickle-down economic policies offered by Mitt Romney who is though coming from much more business-oriented career background. After all, managing a business where its goal as simply to make profit, is vastly different from managing economy of a country where its goal is complex enough to serve interests of all inhabitants in ecosystem. Thus I will bet more on policies than on personalities when it comes to economy. While Obama is still far from perfection with rooms for improvements, he is clearly the better choice in this election to keep US afloat as a global economic powerhouse and leading way ahead into future.