More and more lately I am seeing the FED as useless to our country. Shouldn't our economic power be in the hands of someone like the president. If we disagree with them, we vote them out. So I was thinking of what a president could do here to rescue us for the short term with the long term still in mind. The FED seems to only think in the short term at the expense of the long term. Also sometimes they seem too concerned with the markets, rather than the economy. How about some good old fashion American Capitalism to rescue our economy. Thoughts on this plan?: 1 - Immediately cut income taxes by 30% on people earning less than say 200K/ yr. (Good for 2007/yr taxes for immediate effect). This would really stimulate the economy and maybe save some people from declaring bankruptcy. 2 - A RAISE in the FED banking rates. Yes a raise. This would help the falling dollar , inflation, and let the world know we are serious about preventing stagflation from ever occurring again in the USA. 3 - A tax cut for businesses, but only those that have more than say 50% of their employees living in the US. (Let's use our economic power to help us here as we may not have this advantage in the future. 4 - No fine print. Please; only kind feedback with specifics of why you think each step is good or bad., Thanks.
1. Years ago, the Fed concerned itself with the longer term, and not so much with the shorter. Remember before when it was always the Fed's job to "take away the punch bowl just as the party got rolling"? 2. If it's "tax cuts only for those making <$200K", then we also need to enact discrimination against race, religion, sexual preference, weight, etc... The only FAIR tax system would be a "flat tax + sales tax". We could exempt whatever level of income + whatever items (like food, utilities, etc) as desired. But whatever one gets, all get. And a sales tax would be good to broaden the tax base and collect revenue from "the underground".