According to a vast majority of economists, this recession is the worst since the Great Depression of the 1930s. The recovery is still probably months away and most now believe that America needs to rebuild its economy with new and innovative ideas and technologies made for the 21st century’s globalized economy. So, what must America do to recover from this recession and avert future recessions of this magnitude?
Investing in New Alternative and Renewable Energy Resources
For too long America has relied on cheap oil to fuel is economic success. This reliance has forced her to partner with some of the world’s most notorious dictatorships (i.e. Saudi Arabia, The Shaw of Iran, etc.) and has left the country vulnerable to economic catastrophe should the supply of oil be cut or its prices raised. Alternative energy would not only give America energy independence, but would also create thousands of jobs in an underdeveloped industry. Alternatives being developed today include:
- Solar
- Wind
- Bio-Diesel
- Clean Coal
- Hydroelectric
- Hydrogen Fuel Cells
Although not all alternative energy resources are cheaper than oil at its present price, most are renewable and offer a sustainable supply of clean energy. Even though the price of crude has fallen some 60% in recent months, it does not change the fact that oil is a finite resource which is dwindling at an extraordinary pace. Oil reserves may last for another century, but cheap oil will be a relic of history within the next 20 years.
Investing in Education and Making College Affordable
America became a world leader thanks in large part to the brilliant minds that have inhabited its borders. Today, however, America is falling behind to other developing nations in the math and science skills critical for success in the 21st century. For years, education has been put off by politicians in favor of quick, cheap policies that do little for the American economy in the long run (i.e. cutting education funding to fund pet projects).
In order for America’s economy to succeed in the future, the country will need a highly educated workforce to manage the increasingly complex systems being developed today. A high school education is no longer sufficient for the 21st century workforce. More and more of the nation’s jobs require a bachelor’s degree as the minimum education requirement. A college education, however, has become increasingly more expensive, and due to this new recession, unattainable for many Americans.
Education must be considered a national priority if America is to make a long term recovery. Washington must institute new programs that make college affordable or even free to the vast majority of Americans. Countries in Europe, such as France, already subsidize a college education for all of their citizens. While America may not be able to make college free for all Americans, it cannot afford to have an under-educated populace if it wishes to remain the world’s technological superpower.
Drafting New Regulations for the 21st Century’s Globalized Economy
World leaders across the planet blame America for the current global economic crisis because of the country’s lack of a modern regulatory system. While these leaders do share a great deal of the burden as well, the points they make are valid. Many of America’s financial regulations were implemented in the 1930s and do not reflect the current challenges being faced in today’s economy.
The country must reassess the risks of doing business in a global economic system and develop a regulatory system that safeguards the world from a future economic collapse while still upholding the capitalist principles this nation was founded on. Although the road to recovery will not be easy, it must be done the right way if America is to remain the thriving nation that all others aspire to be.
