Economic Solutions Poll

People want solutions and there are solutions.

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Previous similar post: The solution to our economic crises

Several people have complained that the people predicting a depression aren’t offering solutions but, they are. It is just that the solutions are not acceptable to the majority of people or to our politicians.

The solutions, such as stopping borrowing, most spending, and bringing the troops home from most of the world are not only not popular but would cause a depression in and of themselves first before the nation and its economy started to rebuild.

The current “solution” of delay isn’t a solution no matter how they say they are trying to “fix” this crisis. They are adding more debt to a problem caused by debt. It wasn’t the interest rates in and of themselves or overpriced homes or 42% of job growth tied to housing or some of the other things they say need to be “fixed.” It was debt. Whether debt is at the personal, city, state, corporate, or federal level, it was too high. Much of the debt isn’t tied to housing but to cities and states and corporations AND of course, the Federal Government. They weren’t buying houses but, because the pin p**** to the debt bubble was housing, it gets blamed.

We have increased debt to GDP growth for 40 years, from 1968 on. From that $1 for $1 GDP growth to now where some say it is $5 to $1 and others might say infinity in that now, no matter how much they borrow, inflation adjusted positive GDP may not even be possible. The trend line indicated that 2015, using Government inflation numbers was the point of no return. However, if we use inflation calculated the way we use to, we have only had one quarter of positive GDP in 8 years. That would indicate we have already passed the point of where adding more debt won’t grow GDP positive after real inflation adjusts it down.

The solutions are still there. Stop borrowing, cut most federal spending, cut most city and state spending, bring the troops home, let the dollar collapse, have a brief and very hard depression and rebuild with a sound monetary and economic and tax policy. Tax policy is another solution.

Since we spend more for tax compliance in thousands of businesses than we pay in taxes from them, a simple tax code would mean they could actually pay more taxes and still be competitive and have a better profit. We are paying 35% in hidden taxes and compliance costs according to some studies and that has been going on for decades and yet, in spite of all the testimony to Congress about it, we have yet to even remove one tax line from the tax code but what many more are added. 17,000 pages and 40,000 more pages of rulings, tax letters, etc. are used by companies to comply with taxes and use any exemptions that might apply.

That too, is another solution and while it won’t stop a depression caused by consumer spending drying up, it needs to be included in rebuilding the nation. Restoring the nation to a republic would help too but, that isn’t likely either as it would mean returning the power of taxation to the states and having them send their share to Washington instead of hoping Washington sends them some from all the taxes Washington collects to waste and spend on pork and wars, and other things. It is obvious Washington can’t be trusted with the power to tax. Let each state decide which taxes are best given their demographics and resources and let them send only enough for a limited federal government to Washington.

There are several other “solutions” but don’t count on any of them being sought by our Congress or President because they are too busy moving us away from a republic and to a “new world order.” That is the purpose of this crisis or else it is being used to move us to a “global community.” A global financial system is just the first step.

Related Posts:

• Since 1968 when we first borrowed $1 for each $1 of GDP growth it has gotten worse.
• Any rise in interest rates will speed up the collapse.
• Ben said that we face difficult choices ahead to get the deficit under control.
• No fundamental reason for a recovery yet.
• Greenshoots? Don’t they sprout when there is a lot of fertilizer? They need water too.

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