Our Economic Woes and Their Cure

Our greatest economic woe is that not many people around the world are buying our goods like they were before 2008. The reason is that there is large-scale unemployment in most places. This coupled with a large amount of debt, carried by governments, pension funds, and individuals, have left people and governments searching for solutions.

For individuals and families. What does austerity accomplish in my country, the USA? Cutting back on our massive defense spending would be a big help if we used the money saved to keep our k12 school systems and public colleges adequately funded. If, instead, we layoff teachers, increase class size, and raise tuition at local colleges, it would be a crime if we do it in order to maintain our massive defense spending.

Another solution offered is to reduce federal and local debt by raising taxes on the wealthy. While some of the wealthy understand the need, others say that they are the job creators and raising their taxes will kill jobs. So far, I haven’t seen these job creators create jobs. President Obama has tried several stimulus plans to get these job creators moving, but, with one exception, no one will create jobs until they see customers. That exception is the federal government. We all know that our infrastructure needs a makeover. Now, at a time when our government can borrow at 1.6% on a 10 year loan, we should put aside our debt fears and do a job that needs to be done. This will create jobs, then customers, then the expansion of other businesses, and finally greater tax revenue to pay off the debt.

This cure not new. After over a decade of limping along after the great depression, prosperity returned when the government had to tool up for WW2. I hope we can be smarter now by avoiding the war that some of our politicians are aching for, and instead replace our ailing infrastructure with new, innovative solutions. 

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