This Just in: Obama, China, and Wishful Thinking About American Jobs

From Yahoo Opinion.

"The dirty little secret on both sides of the Pacific is that both America and China are capable of producing far more than their own consumers are capable of buying. In the US, the root of the problem is a growing share of total income going to the richest Americans, leaving the middle class with relatively less purchasing power unless they go deep into debt.

Inequality is also widening in China, but the problem there is a declining share of the fruits of economic growth going to average Chinese and an increasing share going to capital investment.

Both societies are threatened by the disconnect between production and consumption. In China, the threat is civil unrest. In the US, it's a prolonged jobs and earnings recession that, when combined with widening inequality, could create political backlash."