Thursday, July 14, 2011

Hooke's Law As Applied to the US Economy

I believe that everything seeks an equilibrium point, but never settles there until all external forces are gone [this never happens].  The spring provides a great analogy.



The US economy has oscillated above and below its equilibrium point in a healthy fashion. Although each uptick was followed by a downturn, the trend line in equilibrium points continued with a 4.5% upward slope between 1982 - 2008.

It's been a few years now and the expected rebound has not occurred. Is it possible that we've stretched the spring beyond its elasticity point?

We need to replace the broken spring with innovation and visionary leadership.