WSJ article by Peter McKay on China's Falling Stock Market

Peter McKay is asking the basic question of China’s economic engine, is it independent of the U.S. economy. Can China be a catalyst for global growth and economic recovery while America is in the throes of a major economic tragedy? The answer is obviously negative to most anyone who examines the macro economics of U.S. economic recovery requirements.

The major roadblocks to U.S. economic recovery remain firmly embedded in current realities including,
Continuing job losses, in spite of “job creation” rhetoric,
Many manufacturers slowing production each month
Shrinking demand for U.S. products, “Cash for Clunkers” benefits provides a subsidy for foreign automobile manufacturers
The number of underutilized workers in the U.S. growing rapidly (15-30 million in recent years)
Acceptance of a new economic ethos by government economists with the new pace of growth projected to be acceptable but slow,
U.S. consumers losing 15 trillion dollars in wealth since 2007,
Continued growth in deficit spending with the national debt projected to reach 17.1 trillion by 2019,
Sliding home sales, dropping property values, and foreclosures continuing unabated,

James Carville’s strong reminder to candidate Bill Clinton and the staff during the campaign for the White House, “It’s the economy stupid.” remains relevant today and should be a top priority for this Administration, twenty four hours a day, seven days a week. “Sprouts, and shoots,” may be nice but they will neither provide grass for a lawn or hair for baldness. Healthcare reform is important to all of our citizens but forget the debate’s diversion from the main issue, the overarching priority still remains the economy.

Jobless Americans, part time workers, are all trying to manage the family budget on a daily basis, while confronting increasing taxes, new programs, greater government spending, cities failing, streets crumbling, while school districts, states are cutting budgets and services..The time is right for creative, “out of the box” thinking to get America back on course.

In the matter of job creation, which remains at the heart of the problem , since without paychecks this economy will slow to a halt. Action is needed immediately, so while continuing with job creation efforts it’s time to insist on job restoration. I believe in international trade, I am not an isolationist. American workers are the finest they can compete with any group of employees in the world. It is time to reward American companies that bring jobs back to the nation that spurred their development. Government should remove corporative tax and regulatory barriers to job growth and investment. Providing additional jobs overseas and in Asia should come only after the U.S. has full employment. Why? “It’s the economy stupid!”

Dr. Phillips
Bloomington, IL