I read a lot these days about how we Americans are passing the technological torch to the Chinese and their cohorts who rim the Pacific basin. Here’s at least one economist who thinks otherwise.

Economics focus | Venturesome consumption | Economist.com

In praise of America’s fearless consumers of new ideas and products

DISMAL scientists are finding more reasons than ever to worry about the prospects for America’s economy—even though the country’s GDP somehow still manages to grow at a decent lick. Oil prices are high, of course; partly as a result, inflation is rising. Consumer debt is at record levels. America is borrowing from abroad on a gargantuan scale to finance its current-account gap. And the housing bubble may be bursting.

For a growing number of economists and policymakers, however, the greatest fear of all—not least because its long-term consequences may be so deep—is that America is losing its global lead in technology. In the battle to invent and innovate, China and India, in particular, with their gazillion-strong cohorts of engineering and science graduates, will soon overwhelm the dullards and liberal arts students churned out by America’s education system. Nor is this a uniquely American worry. You hear similar worries in Europe too, although there the fear is less of losing the lead than of falling even further behind.

Fear not. Our consumerism is riding to the rescue, opines author Bhide (with an accent on the ‘e,’ poor guy), and as a card-carrying Consumer I like to hear that.

No doubt, even venturesome consumers can overdo their enthusiasm for innovation, just as venturesome investors overdid it during the dotcom bubble. Yet, if Mr Bhidé is right—and a lot more hard data would do wonders for his case—then America’s policymakers should worry more about how to keep consumers consuming than about the number of science and engineering graduates, at home or in the East.

Dave, always willing to do his part to save the economy.