We all know Senator John McCain’s now famous line that the “fundamentals of the U.S. economy are strong”:

 

The mainstream media and Senator Barack Obama have ridiculed McCain for this statement, especially in light of the current financial crisis and the U.S. government’s potential $700 billion bailout.

Since then, McCain has clarified his statement by saying that the “fundamentals” he was referring to were, in fact, American workers.  With that added clarity, McCain’s argument takes on a different meaning. 

Indeed, he isn’t the only one who has noted that the “fundamentals” of our economy are strong.  Certain opinion columnists have made the same argument, highlighting the following notable strengths:

The United States was the world’s most competitive economy the last two years. 

Per-capita gross domestic product in the U.S. consistently has grown faster than in other developed economies since 1980.

We have the world’s largest domestic market size. 

We have the most venture capital available. 

We are #1 in the cost of firing an employee and university/industry research collaboration and #2 in ownership of personal computers and in quality of scientific research institutions.

Our fertility rate in the U.S. is the highest among major industrialized economies, which means that, as major competing nations deal with their populations growing older and the resulting decline in productivity and increase in pension costs, our population will remain young and vibrant.

None of this stuff will change in any significant way in the next few months as we navigate through this latest crisis. 

So, given those statistics, do you think McCain is right to suggest that, despite the recent economic downturn and possible recession, the fundamentals of the U.S. economy are strong?

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