Thursday, January 14, 2010

10 Points to Economic Recovery

Last year, I wrote my plan for economic recovery. I thought I would revisit this plan as it is still applicable.

From February 2009:

I would like to lay out an economic recovery plan that will help turn our economy around and not cost a single penny from the government. As a matter of fact, a large part of it includes a decrease in spending for the Fed. Many of these ideas will not have an impact in the immediate future, but if you are going to build a strong sustainable economy, it must be founded on strong well thought out principles, not knee jerk socialism. I also operate from the premise that all of the stimulus money will have been reversed. For those of you that follow my blog, some of these points will be redundant.

1. Eliminate Minimum Wage – This artificial bottom on wages is squeezing small businesses. A small business owner needs to have the flexibility to pay what the market demands. This will also decrease the demand for illegals and increase domestic employment. The more employed, the more spending there is.

2. Eliminate Illegals from the Economy – They are a drain on public services, take domestic jobs, and pay no taxes. Many are uneducated and criminal. It is a myth that their low labor helps keep prices low. While that may be true for strawberries, it isn’t true for education, car insurance, healthcare, and police. They are a net loss to this country. First we have to build a secure border fence across our entire southern border (other countries protect their borders, why shouldn’t we). Next we have to deport all illegals caught with no due process as they should not be afforded one. Deport all non-capital murder criminals that are illegals as well. How will we pay for all of this. Quite easy. All of the money that is spent providing services to this group of people can easily be applied to the effort. The key benefit here is that once the wall is built and the illegals deported, all the money that was once spent directly for their care can be returned to the tax payer, not to mention the intangibles. Don’t call me crude, it isn’t personal. We must do this so that we can see what level of non-citizen labor we actually need in this country. With all the illegals gone and no minimum wage, the millions of jobless can fill the void. Once we get to a healthy level of unemployment, we can then set guest worker levels, but not before.

3. Eliminate Ethanol Subsidies – This one might not seem very big, but when the economy is sour, the last thing you want is to pay high prices for food. The subsidy for ethanol has a direct correlation to the increase in food prices. Because food product is being used for fuel, there is simply less food product available for people and livestock. Apply and supply and demand and your food prices increase. You save the government money and the consumer money.

4. Drill Baby Drill – The government doesn’t have to spend a dime, they just have to take the restrictions off of domestic drilling. Fuel prices drive the economy. We need more fuel available at cheaper prices. Instead of sending the money over to terrorists, let’s spend it right here. Decrease fuel prices and everything comes down. We also would be able to spend less on defense in the long run as we would no longer care about the politics of the Islamic Facists.

5. National Sales Tax – This one has so many benefits. In short, a national sales tax will eliminate the punitive tax code, eliminate the IRS as we know it, make it so that everyone is financially vested in the state of our nation. The bigger the item purchased, the more you pay in taxes. Isn’t this what Obama wants? You tax illegals and tourists. You eliminate the need for domestic companies to locate overseas. You have to have two amendments to make this one work. One amendment repeals the Federal income tax. The other amendment calls for a national sales tax only with one rate for all purchases. The one rate clause ends the class warfare aspect of the tax code. The fact that there will be no capital gains tax alone will bulge the economy.

6. Balanced Budget Amendment – This one is such a no-brainer. I and everyone else need to balance their budget, why doesn’t the Fed. With a balanced budget and zero debt, I have personally been able to do much more than I did when I had no budget and lots of debt. I was not able to spend my way out of my financial crisis. Why would these principles not apply to our federal government. We need to have a balanced budget amendment. No more trillions of dollars in deficit spending.

7. Line Item Veto – We need an amendment to allow the President a line item veto. If you have a balanced budget amendment, the presidents use of this veto power would only put us further in the black.

8. Eliminate 70% of All Government Programs. Points 6 and 7 will make this easy. We have to ask ourselves, do we really need a department of education, commerce, health and human services, urban development….. Point 5 gets rid of the IRS. For every dollar the government spends on anything, it is a dollar taken from the private sector. Sure there will be massive government layoffs, but all that money will be returned to the private sector, allowing for these people to be employed in the private sector.

9. End US involvement in any International Agency – Do we have to be a part of the UN to do business with other countries. The purpose of the UN as it stands today is to punish mainly the US. Why would we willing submit ourselves to the envy of the rest of the world. I cannot put a tangible dollar to this, but the fact that we won’t be pursuing legislation, such as climate control policies, that is ultimately punitive to our nation has to have a benefit.

10. Provide School Choice – I really don’t know anything the government does that is better than it have been done in the private sector provided the funding were equal. This is the same for education. We are obligated to provide an education, but we are not obligated to make that education a government one. Let’s face, it all begins with the kids. They are our product that we are manufacturing for the future. Because our assembly line is union, we are putting out union quality products. We need to give parents vouchers for their child’s education. Let apply the principles of consumerism to the education system. With competition for your voucher dollars, the quality will only go up. The void of competition keeps our quality low. Parents can apply the voucher to a public school, private school, or home school. In Kansas City Missouri, it cost $10,000 per student per year to provide one of the worst educations in our nation. I choose to home school my children. I could provide the best books, curriculum, and technology for my home schooled children for $10,000 for their entire education. You do the math on this one folks. This one will have the least impact in the short term, but make one of the biggest impacts in the long run.

Don’t believe the propaganda. Government is not the solution. I just spent a few minutes writing down ten principles that will dramatically change our economy for the good, and not a single one included growing government. It literally took me just a couple of minutes, and I didn't consult a single person. Obama’s approach is to treat the symptoms by trying to cover up the wound. To him, of course, it is about power. My 10 points deal with the cause of our economic woes. Treat the cause and you treat the symptoms.

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