Letter to the editor: New economy worries
The DOW tops 25,000! Trump takes credit! The economy is booming! This time it’s the Republicans who are singing “Happy Days Are Here Again.” But …
One thing (with two components) is worrisome — the substance of this New Economy’s base:
• This economic boom is based, in large part, on borrowed money. The national debt grows by the trillions and Congress continues to refuse to address it as a problem.
• The corporations that are replacing the U.S. Steels and Westinghouses in this new economy are the Microsofts and SONYs, the Amazons and Googles, and the HMOs and universities. These are “intellectual corporations” — entities with little of real value backing them. Come hard times, a bond-holder would have difficulty realizing 10 cents on the dollar.
How long can this new economy exist and continue to “grow” on its base of runaway debt and “intellectually endowed” corporations?
That’s what is worrisome.