Trying to break the economic impasse.
It seems Obama is still obsessed with trying to spend our way out of the trouble we are in, and at this point we just cannot afford it. Most people want the economy to improve, but most know we cannot afford more debt. The infamous debt cliff is coming up again and even the average Joe knows this isn't going to be good. We still need economic stimulus, but we cannot saddle the future with so much debt we never get our economy on sound footing.
" Big Business" is so obsessed with keeping Obama out that they will not do anything to help out the economy. Any improvement just looks too good for Obama and they cannot have it, even at their own expense.
And Congress, well what can you say. Congress should be the most representative of the people (meaning persons) yet is so hunkered down with their turf wars that no one they should be helping is getting any representation nor ideas to help our economy. Basically what the people should be able to most rely on is a total failure for them at this point.
So what do we do.
Well first off, there are some businesses that might want to rethink where their loyalties lie. Most large corporations are taking their cue from Wall Street, but if you really want to have a successful business now, maybe that isn't the best path. Wall Street is loving this economic mire we are in now. Wall Street investment companies and mega banks are getting to borrow money at virtually no cost to them and then they are trading that money within their own system to make money. Sure they can do well if they pay attention (yes lets throw in a dig at JP Morgan for screwing up their trading) to what they are doing. They can get outsize returns by playing the day to day fluctuations in the market here and abroad. Its no secret if you know what you are doing it doesn't matter if the market is up or down, as long as there is action/movement you can make money. So the current situation works for Wall Street and if say they aren't taking advantage of the system, then they are either lying or stupid.
So what is the difference in companies either supporting Wall Street or something else. Lets take a look at what would happen if many of the companies that thrive off our consumer society put their eggs back into what makes real money for their companies. This can be the retail outlets and the manufacturers, any company that believes in making money not from playing with money, but actually moving goods. True capitalism, get back to the real free market kind of stuff.
Examples of companies that might fit into this thinking, GM Ford, Chrysler,any hotel chain, luxury, mid, or budget, Macy's, Kohl's, Sears etc, Disney, both Theme parks and entertainment, Apple,Google, any movie company, any cinema chain, suppliers to these companies, plastic makers, just about 90%+ of all restaurant chains, new and developing energy companies, and this is just a very very small sample of who should be thinking differently about how they should be viewing the political situation.
Personally I am not voting for Obama or Romney, but we are going to be stuck with one before the year is out. At this point no one wants to give Obama anything and if you think Romney is going to benefit anyone but a select few, well you are either lying or stupid.
And this is where the impasse lies, most corporations think they should support Romney etc, but they will only be shortening their business life. And I could go on and on about all this, but where is the answer.
So the corporations that need to stop this madness we are in and whether they know it or not, they are the ones we need to turn things around. And believe it or not, if they break from Wall Street and go back to working on what makes their business do well, which is have a strong customer base, things will turn around for us. Not the only answer, but definitely one of the largest pieces of the puzzle.
No matter who gets elected these corporations need to band together and demand A B and C
A) give us real tax breaks, and make them conditional so they work. We get breaks for true investment, in new products, creating exportable goods, and hiring people at home. And we have to be the ones that demand they are conditional on actual production, not the government requiring, why this difference, because tax breaks for tax break sake doesn't work. The tax breaks have to be for actual results, that is the "D" given back.
B) Work with countries to accept our new exports, create completely new economic trading groups. For example and this is big. Not every country on planet Earth wants to be dependent on oil ours or OPECs or anyones. Many developing countries want something new, we should be working with our corporations to create these products. Lets work with third world countries to develop entirely new lines of products that fit their needs and help them develop their economy. Detroit should be huge in developing electric and non fossil fuel cars and they can be small and even made in third world countries. We should also be developing wind, solar, and geothermic energy sources so these cars can run. We also sell these products as exports and keep for our consumption. We have our corporations developing high skill jobs and exporting technology including building the factories in the third world, but not like China, we instill framework to create a middle class, this benefits us because now they can afford to buy from us. (this isn't coming out the way I first thought of it earlier today). So lets say Detroit develops and builds a new electric car. We slowly sell here, not everyone wants a SUV, and at the same time we are building solar and wind plants abroad, (our technology) this gives the new country the resources to use our cars, we build small so they can take over production for the product within their country, but we supply parts, technical manpower, and expertise. This even develops some job exportation. This is one example of what I am trying to say. So if the Government goes out and rebuilds our credibility, opens new trade, supports real free trade, we give you "E" a commitment to develop jobs here first, reasonable wages, and reinvestment in our education system both arts and sciences.
C)Give me the cheap money wall street is abusing and take it away from them until they decide to reinvest in me. Basically create the expectations that the stock market is for people to invest in a company to see it grow and the growth of the share price is a reflection of the health of the company. I need my stock to reflect what I am doing as a company not the machinations of a few highly educated and over bonused traders.
And an aside here, going back to "A", you can create tax policy that is flexible. You read all the time about how the Fed is running out of ways to affect the economy. One of Bush's best ideas was expiring tax breaks, not because they expired, but because they had built in flexibility. Outside of some very basic tax law, nothing should be so hard in stone it cannot be changed. And this can be simple changes, for example tax heavily short term institutional trading gains ( and I have posted this idea before), but don't make them permanent, put timers on them, ie if x happens then they can be dropped or if y happens we do something else or just put review timers on them. Who knows one day we may decide we want people to contribute more to charities so we raise the overall rate a slight bit, but give bigger breaks for charitable contributions for a short time; just an example of different things you can do. For now though the higher rate for short term institutional trading to me is good, but along with it, lower rates for people in certain income brackets to encourage savings. And that also goes back to bringing the stock market back to helping companies stock prices reflect how they are doing so the average investor can get back to choosing stocks or mutual funds for long term savings. And to me it is maddening that the mutual fund companies haven't revolted against the current situation on wall street, aren't they suppose to protect their shareholders?
GOING BACK TO C: Give me the support I need to invest with cheap capital, and I will give you "F" living wages for my employees, growth opportunities, and executive pay that reflects how the company is doing, not just outsize bonuses and salaries. IE not be American Airlines
Yes this is a different type of compromise, and all these ideas really have been around, we just haven't implemented them effectively. My ramblings haven't done my thoughts justice this evening so I beg your indulgence on the the above, but if you can see we need compromise that reflects a commitment to reigniting investment in core businesses to develop new business and a government that rewards productive behavior instead of dictating everything in our lives we have a chance.
Growth means more people work, pay taxes, and need less federal benefits which is the start of balancing the budget, one of the next most important challenges facing our country.
Coming soon some new ideas for the budget and for social security. And social security has some fixable ideas, may not solve everything especially with medicare etc, but basic saving for retirement is possible. And these ideas have some job growth in them, that sounds like it may come from Obama, but lets take the federal government out of it and use local governments and other endeavors instead. Keeps the federal government under wraps for the money, just helping with the coordination. And I am not talking about involving Wall Street, but investing the money other ways, plus fixing other issues facing our country. the tease: revenue bonds. Is all this new, no, but putting together a more comprehensive policy that reflects my concept of bringing back the progressive conservative party.
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