A lot is being written about the War in Iraq as the reason why so many Democrats have been elected to formerly Republican held seats.
I think that there may be a less discussed reason: economics. Here is Michigan, people re-elected a Democrat governor despite the state having the worst economic situation in the U.S. But it's not just Michigan. The northern-tier states... those with the unhappiest economic prospects... are those who are saying that a situation that favors low-priced imports over U.S. jobs is not what they want. Especially when the jobs are being transferred to China where currency manipulation, piracy and counterfeiting of U.S. products and processes, and unethical business practices are the primary reasons for U.S. job losses in manufacturing states.
Now many economists don't believe that thinking is rational or sound. They contend that if China wants to "give" us stuff for far less than it can be made here... why we should welcome their generousity... even if millions of manufacturing jobs get flushed down the toilet. That's just the price for global trade. The real question is: what will we have to trade for those Chinese products in the next ten or fifteen years? They already have research, engineering and manufacturing capabilities that U.S. businesses developed for them. Pretty soon they will have the marketing and sales capabilities. What does that leave us, consumers? And just how do we pay for being consumers?
Simply take out more loans on your home that is losing value daily. Call it a "personal trade deficit."
