The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need. The economy cannot fully recover until consumers (~70% of our GDP) have gainful, productive employment.
Short term stimulus’ and tax breaks will not move the economy ahead in the long run, and may have deleterious consequences down the road.
Stock markets previously priced in cheaper, outsourced labor for many industries. The market, if not already pricing in the increased cost of domestic labor, may yet have more adjustment to come.
If we continue to send jobs overseas, we will end up with a “second world” economy, with a diminishing middle class.
