Perot accurately predicted the enormous loss of jobs because of the so-called free-trade. The playing field was not and is not level, and hopefully something is done about this, since our country continues to send hundreds of billions of dollars overseas as well as losing millions of jobs because of the unequal rules.
My point is that we are already $8T in the hole (or at least some part of that as much of that is guarantees) why not add another $2-4T at this point while we still can, either it works and we generate growth or it doesn't and we are in the same straits we will be in anyway without growth but at least with some nice shinny bridge sand schools and a few more years reprieve before the end comes. I think that $2T in incentives for the PRIVATE sector to increase material science research (one of the big log jams in the innovative process as we don't have the materials to support some of the technology we have come up with), life sciences, and other areas where we could create new high growth industry would be far more effective than any program to build roads and bridges. It takes time to reap the rewards from such research so in the meantime by all means spend a few hundred billion on people doing grunt work to keep the economy ticking while we wait for the next technological evolution to come to fruition. Another way to massively stimulate economic growth is tort reform. How much of each $ spent in the US is spent to avoid potential liability? I would say that it is at least 10-15% and in some areas like healthcare, from Pharam to the way medicine is (or is not) practiced more like 20-30%. With meaningful tort reform we would get a huge boost to growth and innovation without any additional tax burden. Given Obama's training and the fact that most in congress are lawyers I am not holding my breath on that one. Free business from healthcare care costs, pension costs, and incentivize areas of high growth and technological innovation, and spend on science programs in schools and colleges and we will have a chance. More of the same and just spending on roads and bridges and subsidizing old technologies is just not going to do it and before we know it we will have lost the opportunity to borrow from the world to finance our growth. People should not underestimate the fact that if the US is no longer the engine for global growth then there is no reason for China et al to finance us. If all it is is roads and bridges then China is better off investing in its own roads and bridges.
Another true believer - - - who thinks it matters whether there's a D or an R after a politician/lawyer/liars name. Though I didn't vote for the guy, I'm actually glad he'll be in office. The guy is very slick. It just might buy us a little more time to prepare - while all you guys who voted for the vague promises of 'change' and 'hope' are holding your collective breath - before a potential Big Crash of everything. Yeah the guy knows economics & business, afterall he's another lawyer and a community activist. Lots of industry and entrepreneurial experience there. He's also been a professor - - lots of practical experience from that. - - - Unfortunately, the other guy was totally clueless. And, the stammering and whiney voice wouldn't have been much help in terms of the b.s. factor needed. As for alternative solutions - - - how about actually enabling free enterprise in this country ? Its almost amusing that capitalism is blamed for the current problems, when free markets don't really operate and government influenced centralized control is at the root cause of this disaster. Outrageous proposals that might do some good in the long term? (thrown up on the wall to see what might stick) : - - Total overhaul of the current system of international trade as established after WW 2. - - Re establish a gold standard rather than fiat money - - Abolish the Fed - - Across the board cuts in all government spending. - - A flat tax - - Incentives for business investment & personal savings - and tax cuts to those that engage in these activities. Make the country the most attractive environment for business and entrepreneurship in the world. Attract high quality people and companies here from around the world because this is the place where they can invent something useful and get Rich ! - - Medical savings accounts so that people can shop for their own health care and which encourgage competition. - - Allowance of school vouchers to bring more competition & raise the quality of education (far too many dummies out there - and too many kids trapped in terrible schools). - - Requirement for all students to pass a test in history, civics, economics, and personal finance before being allowed to go on to high school. - - A Manhattan Project for energy independence. Role of government would be to provide incentives for basic research that could later be implemented by private industry (govts aren't very good at actually getting such research into practical products). - - The research must Not be guided by political philosophy, but be allowed to advance in ways that produce the best physical results. Nuke, coal, wind, etc, etc, must all be on the table as possibilities. No prejudices before even starting. Based on most energy out for input of resources expended. "Government isn't the solution, government is the problem." - - - I doubt that given the fact that our government is run by lawyers (obfuscation, extortion, protection rackets) and professors rather than entrepreneurs - - - any of this will be done. I also doubt that a citizenry that has been brain washed for decades to believe "business is bad", and "government will look out for me" will get this - - - even if they took a few minutes away from looking at the boob tube and plugged into their i-pods to think about it a little with their limited mental skills. Just look at how many of them fell for 'hope' and 'change'.
The solution is very simple: 1) Get back to classical lending practices and standards that promise a good return from credit-worthy borrowers. Government oversight is required to ensure the thieves and scammers don't run away with the money as they did during the last eight years of do nothing, know-regulation, "free-market" deregulation. (Every great recession is caused by a run on the banks). 2) More production and less consumption. At least to the point that we are making more than we are spending. Funding consumption by borrowing has always been a recipe for bankruptcy.
2009 economic outlook is bleak. planning is one thing, drawing up the plans, getting the contractors, materials, right-of-ways, etc is gonna take time. the difference now b/w Greenie's 1% rates & Benny's moves the massive leverage & debt, not to mention psychology has totally flipped. wasnt it just this past August when the FED stood pat on IRs & 2 days later they reversed themselves? ObOmbA was probably the better choice, but he doesnt have much of a track record & this is a massive undertaking.