Economist to Obama: New ideas needed

COLLEGE PARK, Md., July 13 (UPI) -- University of Maryland economist Peter Morici called on President Obama to abandon the "conventional wisdom of the left" to pull the country out of recession.

"Just as President (George W.) Bush's blind adherence to conservative ideology threw America into crisis, Obama must unshackle his policies from liberal group think to succeed," Morici said.

Morici said the U.S. trade deficit with China needs to be addressed because until imports are paid for with exports, "inventories pile up and layoffs result.

"Americans solved that problem, temporarily, by borrowing against homes, cars and credit cards to spend more than they earned," Morici said. "Banks got the cash from China and Middle East oil exporters (who were) stuck with dollars from selling to Americans but (did not buy) U.S. exports.

"A bubble resulted in home construction, housing prices and stocks that inevitably burst. Voila, the Great Recession."

Morici said Obama needs to "think outside the box and abandon the conventional wisdom of the left."

Morici said Obama needs to resurrect the U.S. manufacturing sector, abandon cap-and-trade until China and India sign on, and make sure healthcare reform focuses on reducing drug and malpractice insurance costs.