Our Leaders are Clueless on the Economy

folder_openEconomy

Read this Reuters article:

http://bit.ly/8GvWTx.

It seems that the White House spent so much time on a health care plan that nobody wanted that they ended up putting the economy into a deep freeze. Now, they are faced with a real problem.  They are spending so fast, they have to raise taxes.  But taxes will kill any growth.  Pushing growth though too much can mean inflation, which will kill growth.  Damn, they are nuts.  They spent a year on a ridiculous health care plan.  They focused on a stimulus plan that was all pork and no stimulus.  They focused on praising our enemies.  They spent like drunken sailors.  Now, here we are.  We can't vote them out fast enough.  If they had any sense, they'd get really radical, in a positive, conservative, constitutional way. NO, I'm not talking about conservative in a social way.  I'm talking about conservative in a fiscal way. 

Here goes:

  • Replace the tax system with the FairTax.  I just re-read the book by John Linder and Neal Boortz. http://bit.ly/4qH36b.  This plan, started in 1994 and introduced into the House in 1999 isn't Republican or Democrat.  It doesn't change our spending habits.  It moves us to an indirect tax system.  The Federal government would add a 23% tax at the retail level eliminating all payroll taxes, all income taxes, all death taxes and all corporate income taxes.  Read the book.  This tax system has had more research than any other.  Millions have been spent to analyze it.  Both liberal and conservative economists back it.  Universities have given it a "thumbs up".  A change to this system would make America the best place to do business in the world.  We'd make more, spend more and prosper more.
  • Cut spending.  Cut Debt.  Only spend what is really needed by our government to operate.  Don't cut defense.  Nothing else is sacred.  Not Medicare, not Medicaid, not bridges to nowhere.  Spend less than taken in.  Business will love it.  So will those that are unemployed when business starts moving.
  • If we're to reform healthcare, we have to first realize it's not a right.  However, there are things the government does to make healthcare harder and more expensive than it has to be.  John Mackey of Whole Foods had a good list of actions the government (or governments, state and federal) could take to make things better.  Here they are:
    • Remove the legal obstacles that slow the creation of high-deductible health insurance plans and health savings accounts (HSAs).
    • Equalize the tax laws so that employer-provided health insurance
      and individually owned health insurance have the same tax benefits.
    • Repeal all state laws which prevent insurance companies from competing across state lines.
    • Repeal government mandates regarding what insurance companies must cover. 
    • Enact tort reform to end the ruinous lawsuits that force doctors to
      pay insurance costs of hundreds of thousands of dollars per year.
    • Make costs transparent so that consumers understand what health-care treatments cost.
    • Enact Medicare reform.
    • Finally, revise tax forms to make it easier for individuals to
      make a voluntary, tax-deductible donation to help the millions of
      people who have no insurance and aren't covered by Medicare, Medicaid
      or the State Children's Health Insurance Program.
    • Not from Mr. Mackey, all laws the keep membership organizations from creating and offering health insurance.  Wouldn't it be great to sign up for healthcare at Sams Club without any worry about pre-existing conditions
  • While I like a free market and as well like to see free trade with other countries, the balance of trade currently is not in the USA's favor.  We just can't keep buying all the worlds stuff and not have them use our dollars to buy back our stuff.  We must do whatever is favorable for the US.  Sure, we want prosperity for other countries too.  But, we have to take care of America first.

If the federal government could focus on these, economically, I think prosperity would return quickly and in a big way.  And when we do well, so does the world.

 

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