It seems that we have missed a wonderful opportunity to invest in order to be better positioned to take advantage of current conditions. Investment was not all that great in the manufacturing sector. There is a huge trade deficit in terms of non-energy exports. Some sectors have performed well, but overall, it is a big problem.
I re-read an open letter from a renowned economist, Joseph E. Stiglitz, published in Project Syndicate, where he said that the austerity recipe and the mix of corporate tax cuts associated with lower spending weakened the economy and had practically no effect on investment. He said that, on the contrary, higher taxes are not an obstacle to business investment, especially as most corporate investment is in any case financed by debt and interest payments are tax deductible.
Obviously, we have been in the grip of magical thinking in recent years. We really missed the boat; we got left behind.