What Lies Ahead for the US Economy?

Here is a bit from Robert Reich's predictions:

What will happen to the US economy in 2011? If you’re referring to profits of big corporations and Wall Street, next year is likely to be a good one. But if you’re referring to average American workers, far from good.

The two American economies — the Big Money economy and the Average Working Family economy — will continue to diverge. Corporate profits continue to rise, as does the stock market. But typical wages are going nowhere, joblessness remains high, the ranks of the long-term unemployed are rising, the housing recovery has stalled, and consumer confidence is sagging again.

The big disconnect between corporate profits and jobs is likely to continue because America’s big businesses are depending less and less on U.S. sales and U.S. workers. Their big profits are coming from two sources: (1) growing sales in China, India, and other fast-growing countries, and (2) slimmed-down US payrolls.

There is a lot more good info in Reich's post, read the whole thing.