Robb,
It all depends on how you look at things. I think that debt is very much part of the problem because when, not if, interest rates rise we will not be able to pay for anything but debt service. The spending absolutely must be better controlled, as must revenue streams be increased as must pork-barrel crap cease, forever.
Extending the retirement age for Social Security and Medicare only worsens employment opportunities for younger Americans. It will FORCE seniors to remain in the market longer, filling jobs that are thus not available to younger workers who, in many cases, can fill them cheaper with benefits like defined contribution retirement plans vs. the defined benefit plans of their parents and grandparents. The sooner the boomers retire (and sadly die off, over time) the bubble in entitlement costs bursts... assuming that sloppy immigration policy doesn't create a new ocean of entitlement claimants.
The U.S. housing industry is in better shape than you think as housing prices and interest costs have declined much faster than average loss in household income. Housing is not all rosiness, yet, but it will fully recover as is the automobile industry because eventually the old "inventory" must be replaced and as Sandy has accelerated in much of the Northeast.
I agree with you fully on corporate taxation policy which makes repatriating overseas profits very costly. However, the potential offset is the stability of the U.S. economy vs. the extreme volatility in Eurozone and BRIC economies. If the U.S. gets its fiscal house in order, not by gutting all spending or entitlements but, rather, via incisive decisions like means testing, outcome-based strategies and waste and regulatory cleansing then off-shoring of jobs could clearly migrate to returning those jobs to American soil. The big driver in this is CURRENCY valuation... but that's a topic for another day.
This is healthy discussion!
GLTA,
Yank
