7 Ways to Fix the Economy
Anyone with half a brain can see that the U.S. economy is in a malaise. It’s just muddling along.
Unemployment is still high. Economic growth is low. Prices are rising for goods and services (just think
gas prices and food prices). Job creation is low (people you know that have been unemployed are still
unemployed). Small businesses are still struggling to survive given decreased demand and tight credit.
The real estate market is in the tank; house prices are still falling and foreclosures are likely to spike
this year. The banks are still in trouble, despite what the Fed says and does. Federal budget deficits
continue to be the norm, requiring additional increased in the national debt. There’s still a risk to the
U.S. economy from the economic crises in Greece, Portugal, Spain, Italy and so on. All of these factors
paint a pretty bleak picture for the health of the economy.
I wholeheartedly believe that the U.S. economy is on the brink of a double dip recession. I would even
argue that the current environment is still recessionary even if it doesn’t meet the technical definition
of a recession. I suspect if you’re one of the millions of Americans struggling right now you’d probably
agree with that. If you’re doing well, you probably haven’t been impacted too much or noticed what
everyone else is going through. Sadly, it’s a situation of those that have a job prosper while those who
don’t have a job suffer, which on a side note is a sad reflection on President Obama’s class warfare
strategy that is attempting to divide this country. While we may not be able to stop the economy from
slipping back into a recession in the short term, we can take some actions to fix the economy for the mid
and long term horizons. I think there are seven actions that need to be taken to get the economy back
Read #1 here: Lower Taxes
Confidence in Leadership and Administration
America has a real crisis in confidence in our
elected leaders in the Congress and the President. I think it’s pretty clear that President Obama
and the Democrats in the Congress don’t really know anything about the economy. The Senate
can’t even pass a budget on its own. Collectively, President Obama and the Democrats have
embarked on economically destructive policies since 2008. Their anti-coal, anti-oil, and anti-
drilling energy policies have resulted in higher utility prices and higher gas prices throughout
the nation. In essence, they’ve created another tax on consumers. They’ve wasted billions
of dollars for green projects that have gone bust and refuse to abandon those failed policies.
They’ve continued to spend like drunken sailors, with the President presiding over the first
downgrade of U.S. debt in history and the largest increase in the national debt in history.
Obamacare was rammed down the throats of the American taxpayers with massive stealth tax
increases on businesses. Quite simply, American business has lost confidence in the President
and the Congress. If there were a vote of no confidence, these clowns would be out.
It’s clear that businesses are reluctant to hire and expand if they’re going to be forced
to pay for healthcare for employees which will increase their costs in an already price
competitive environment. In addition, what incentive do businesses have if they’re going to
be taxed to death for being more successful? With no financial or economic credibility, the
Administration isn’t able to effectively lead and instill confidence in businesses and taxpayers.
This Administration doesn’t do anything to inspire innovation and entrepreneurship. This
Administration does nothing but create uncertainty regarding the future, which is a major
disincentive for businesses to plan expansionary projects. America needs strong leadership
in the President and the Congress, leadership that knows what it takes to foster a prosperous
business environment where businesses can have certainty to expand and make investments
and increase payrolls. America needs strong leadership that can get the financial house of the
federal government in order and stop the self destructive economic policies that result in our
becoming more indebted, less creditworthy, and less competitive.
How to we resolve this? Vote them out of office in 2012 to start, then put massive pressure on