Fixing the Economy

Okay folks, let's fix the economy.   The biggest problems are :
A. The Deficit
B. Housing is in the toilet.

C. Inflation
D. Unemployment

Let me first state that we are Americans. There is nothing we can not do if we decide to do it.

The deficit and related payments are sucking the economy dry.  Money that could be used in this country to improve the life of Americans is being shipped overseas at an alarming rate.  First we must curb reckless, devil may care spending policies.  Some politicos want a balanced budget amendment. Frankly, I doubt that is what we need.

Some debt is needed for growth. I have personally been on a "pay as you go" cash basis and I have had an above average credit rating.  On a cash basis, buying the things you want or need sometimes had to wait. If I wanted a car, I had to save for it thus delaying the purchase vs. borrowing the money and buying it now.  How long would it take the average person to save enough to buy a $30,000 car or a $100,000 house? The car would be worn out and in the junk yard by the time you had saved again to replace it.  No, You need debt in order to grow.

The Treasury has already had trouble selling US Treasury Bonds, thus the advent of "Quantitative Easing I and II. This is where the government bought its own bonds! Taking money out of the left pocket and putting it in the right pocket.  Makes no sense what so ever! It is a shill game!

Instead of balancing the budget lets limit the US debt to a percentage of the Gross Domestic Product (GDP).  Today the debt is about 36% of GDP. We are borrowing $0.40 of every dollar the government spends. Lets cut that to around $0.10 of every dollar.

To do that we must cut spending. We have God knows how many duplicate programs in the government. For example, we have 35 different agencies in the intelligence area (then why are we so dumb?).

Do away with the TSA. This agency is not needed and it's functions can easily be absorbed by other agencies where truly needed,  For instance, let the FBI monitor terrorists, let the FAA worry about airport security, and let the Coast Guard handle port security,  These agencies already do some of this so why do we need the TSA? 

Lets eliminate the EPA  and consolidate some of its function to the Interior department. After all, is not air quality or water or wildlife within the US an interior problem?

Former Senator Everette Dirkson stated  about the budget "...a billion here and a billion there, pretty soon it all adds up."

We can also raise revenue. The "rich" already pay more than their fair share. If we are going to tax anyone, lets get some tax money from the 48% that pay nothing. Hello? Anyone listening? Close some loop holes. Why should one be able to deduct the interest on a motorhome as a second home?  There are more people living in their cars than in motorhomes, yet they can not deduct their car as a second home!  Large boats and yachts as a second home? NO WAY!  Look at the Child Tax Credit. A lot of people get more back as a tax refund than they pay in. Stop it!  If you pay in $4000.00, you do not get back $8000.00. You can not get back more than you pay in.

It is time for a flat pay as you go sales tax with NO income tax in individuals.


Housing is in the toilet because of  liars, cheats and thieves.  Low interest rates and easy money sucked everyone in. Home buyers lied on their loan application - throw them in jail, it is a CRIME to falsify a legal document. Bankers approved loans without proper documentation and verification of the facts. Throw them in jail for "breach of fiduciary duty" - also a crime.

Go ahead and foreclose on delinquent property owners or renegotiate the contract, Clear out the clutter and stop all this government bailout BS and then raise the interest rates on housing! In every housing down turn there are thousands of buyers waiting to buy in when the rates hit bottom. This would signal the bottom has been found and folks would start buying.  If you  are a senior and your home is paid off, no property taxes. The home is truly yours!

Inflation is insidious and the government is manipulating the data.  Real life inflation is food, gas, insurance, clothing, utilities,  etc. all of which the government does not include when it calculates "core inflation".  Uncle Sam wants you to stay stupid!  Inflation has two root causes, the first is excess demand, the second is currency devaluation.  There is no excess demand therefore currency devaluation is the culprit.

From a previous post:

Fed monetary policy is killing us. All commodities are priced in US dollars. The Fed needed money for debt service, Obummer’s heath care bill, bailouts, buying car companies, and all the imaginary “shovel ready” projects. What did they do? The Fed just fired up the presses and printed more money! Imagine the dollar is a piece of a pie. The pie has 10 slices and sells for $10.00.  Your slice of the pie is therefore is worth a dollar. Now here comes the geniuses at the Fed and from nowhere doubles the number of pie slices (dollars). Since each slice is now ½ the original size, your dollar (slice) is worth ½ of what it was.  There are two choices.  The pie must now sell for $20 dollars to maintain the original value of your slice or continue to sell the pie for $10.00 and accept that your slice is now worth $0.50 cents.  Either way, you lose.

We can fix the dollar's value, we just haven't.  Stop the printing presses!

Everything said previously revolves around employment. The real problem is that no job means no money which means no buying which leads to no demand which leads to no jobs or layoffs (I know it is a run on sentence and grammatically incorrect).  This problem is not hard to fix.

Start by giving every company a tax credit, say $5000.00,  for hiring a new full time employee in the USA.
Give them $1500.00 for a part time employee. More people working (and paying taxes) would offset any lost revenue to the Feds PLUS increase demand which would require more hiring.

Give generous tax incentives for new businesses. How about NO TAXES for first 3 years?

Get the government out of the way, turn us loose! There are other things that can be done. What is important is to unleash the American spirit!

In closing this post I will say that we are the most productive, most innovative, and hardest working people in the world. Get the hell out of the way and watch what we do!