This quote has a number of meaning perhaps. Jay offers one in the form of a question…and more from Bill Black in an interview:
BARACK OBAMA, U.S. PRESIDENT: Thanks to the grit and determination of the American people, we’ve cleared away the rubble of the worst economic crisis in our lifetimes. So we’re poised for progress.
JAY: It seems to me President Obama’s model, if you read between the lines, is that, number one, the objective is the United States should become more competitive globally, and the recovery will be led by exports, not by domestic demand, and what will fuel that is lower wages–he doesn’t say that, but that’s the model created in the auto industry, where starting wages went from $26 an hour to $14 an hour. So if you have lower wages in the United States and then you combine that with investing in innovation, so the United States stays or moves even further out front in terms of innovation in various areas, low wages plus innovation leads to more exports, and that’s supposed to lead to a recovery. Do you think that’s what he’s essentially talking about? And if so, what do you make of it?
BLACK: Well, yes, and we’ve talked about this before. You can’t have all nations be net exporters, right? My export is your import. So this is not a strategy that can work globally, this is not a strategy that can work for all nations. So my export is your import. So we can’t all be net exporters