It seems nearly impossible to predict how the world economy will be going. One thing is for sure – without serious innovation (something we are absolutely capable of doing), no matter what it goes, America will be hurt seriously in the coming decades.

I’d like to see some more research about this issue.

The last 2 generations have been building up an immense debt bubble, and eventually it’s gotta get paid. I’ve noticed since the dot-com bust, that it seems like no matter how great our economy was, it was built on the stilts of credit — often with a service industry as our primary source of income. When people start having to pay down their debts instead of buying that new car or going out to eat all the time (or worse, go bankrupt), the services and retail industries in America will begin to collapse. It wont be a grinding halt, and it may even be a relatively smooth transition to Europe, China etc. But that doesn’t mean it wont seriously injure America. Our problem is that the average person is no longer innovating — we still have a few who are, but most of our large corporations have been singing the same song until just recently (too little, too late?). Not to mention the dubming-down of America. We’re a nation whose high school graduates can’t fill out a college entrance exam. What other nations can you think of who have a generally uneducated population yet still flourish? The people of China & India (1/3 of the world) all have centuries-long traditions of education.

Granted, these two mega-population centers still have plenty of their own problems, and I doubt that even their burgeoning middle-class will be able to afford to replace us as the world’s major consumers any time soon — not without going into the same kind of debt we’re in.

It’s time for us X-ers to start thinking smart again — and stop spoiling our kids. Instead we should be focusing on preparing them to retake the global economy.

@Webomatica: I agree that American consumerism is slowing down, but is it going to come to a grinding halt? I really don’t see that happening. Besides the fact that there are billions of foreigners that are just now entering the post-Industrial phase that created a consumerist America. I think China/Brazil/etc.. will take over for America, if America does halt on consumerism.

So now that the consumer is slowing down, what exactly is going to take up the slack? Foriegn spending? And will that be enough to let the American citizens pay back all they owe and then some? I don’t know.

Seems the more likely outcome is business retrench to a populace that spends much less money than years previous. And that adjustment will likely be painful.