In addition, we now have the technology (horizontal drilling & fracking) to solve our energy problem. This economic malaise is primarily due to high energy costs, government restrictions on producing more of our now available resources, and uncertainty about taxes and regulations. The 70s economic malaise was due to much the same things. Because we now have the ability to solve our energy problems, if the government will get out of the way, we’re much better off than in the 70s. Back then our energy companies had to look overseas for new energy sources. They were successful, but now, with most new overseas oil sources locked up by national soveignty issues and new demand from India and China, more sources must be opened up here in the U.S. (It would do wonders just to reduce the amount of money we send overseas for imported oil.)

The debt is larger, but we have to look at the debt closely and see why it is different. I like to read a blog called the Skeptical Optimist. The blogger, Steve Conover, injects what I think is some perspective into the economic picture. Here’s an essay on the debt and why the economy matters:
http://tinyurl.com/8yvv7z6
Read it to get a different take on the debt issue.

Look at the chart of the debt and who we owe it to. The biggest chunk, 31.2% of the debt (almost $5 trillion), is owed to the Federal government. That is the “not so trustworthy” Social Security/Medicare trust fund. That’s why people like Paul Ryan are talking about the necessity of reforming SS and Medicare. If we can reduce those two entitlement programs by 10-15%, hold discretionatry spending flat or lower, and increase revenues by getting the economy moving again, we will be well on our way to solving our debt problems. That’s why it’s the economy that matters in this election. Call me a foolish optimist, but there are solutions to our problems if we will but see them.

The debt we have today was inconceivable back then, and we’ve had at least two generations who have been deliberately dumbed town to ignore and disdain American history and values.

As is often said at Belmont Club, we’re running out of design margin.

From reading your Neo posts for the past 2 yrs I can readily say you are an honorable person, but IMNSHO you are a few dollars short of reality. I too believe “we can do it again” but alas, we can not do it again unless 50%+ believe in the dream of America. To “do it again” will require deep sacrifices and I doubt the ‘99%’ understand the sun does not rise in the east.

Yes, I agree that Europe, at least southern Europe, is going to have a deep recession and that will affect us, no doubt about it. Things are not all that great in Asia and South America either. That said, we can come back, if we can get a government in place that gets out of the way of the economy. However, the sands are running through the hour glass and everyday of economic malaise makes it that much harder to get the engine running again. That’s why this election is all about the economy.

These days remind me a lot of the late 70s. Things seemed equally bad then. I had my family in a mountain retreat with guns and ammo, a bag of silver coins, and a plan to live off the land when everything came to a halt. Imagine my surprise that, after double digit inflation, we then had 15% interest rates to kill the inflation, which in turn caused a very deep recession; everything held together. Not only did it hold, but with a government that encouraged the economy, we prospered for 17 years. Confidence that there is a better future out there for the taking is what we need. Call me a wild eyed optimist, but I believe we can do it again.

http://www.youtube.com/watch?v=P36x8rTb3jI