Here are generally agreed upon reasons for our weak economy: Subprime mortgage crisis; job losses; weakened dollar abroad leading to significant trade imbalance; continuing cost of war; not enough revenue to pay the bills.
There are obviously lots of factors, and lots of solutions are being bandied about. I’m certainly not an economist, and I’m not going to claim to be smarter than anyone else. I’m just an average Joe who wants to make a few suggestions, and have discussion about them to see if they are good ideas, bad ideas, or can be good ideas with tweaking. In other words, I’m looking to open a line of discussion with people smarter than I (oops, sorry Vonnie, that leaves you out 
).
Obviously, I hope the tax cuts Bush imposed to help his rich buddies are not made permanent. I think that will happen.
But my ”first step” in fixing the problems? Wages. I read where the average wage is down since 2001, the typical household income is lower than it was in 2000. But big corporations are raking in record profits. Wages for middle-management on down to entry-level wages are going down, but the big-wigs make more, which pleases the shareholders. However, the people who TRULY spend the money to keep the country rolling (i.e. the middle class) have less to spend.
I also have read that while these profits for the major corporations have soared, they haven’t put the money back into not only the help, but the investment on upgrading equipment and computer software is way off what it once was. That, of course, blows the “trickle down” theories out of the water to me, but we already know that scheme doesn’t work. Â
So how do we increase wages?
Can we can start by increasing taxes and closing tax loopholes for these corporations, instead giving them incentives by way of new and different tax breaks IF they increase wages and benefits for American workers?
If we can increase wages, can we do it slowly enough so as to not scare the hell out of the elite on Wall Street who then cry “inflation, inflation!”. Also, why couldn’t these companies be given incentives on bringing jobs BACK to the U.S., not farming them out overseas, and why shouldn’t they instead be harshly PENALIZED for taking their jobs out of country.Â
I don’t think I’m proposing, btw, some sort of isolationist nationalism here, certainly not. I’m only suggesting we achieve a better trade balance. It seems to me that the mega-rich actually do BETTER when the middle class has enough extra cash to go out and buy things to stimulate growth.
They are, of course, convinced otherwise. But that’s my start. Let’s discuss…rationally, without snark (oh, crap, that leaves Vonnie out again. Darn the luck.)
5 responses so far ↓
1
vonster
// Mar 25, 2008 at 12:11 pm
You crack me up, Beej, but your obsession is getting kinda creepy.
2
Ramble On
// Mar 26, 2008 at 4:57 pm
I am struggling to get myself in a position where I can actually retire and 65 rather than 66. Have to wait for Medicare (such as it is) since I cannot afford a year of COBRA or private insurance. There are many things I would like to have, few things I truly need and I can guarantee the “stimulus check” will not be spent on any of those “like to haves”. No DVR, no iPod, no new appliances, no lap top computer, no premium channels on DishTV, instead another step toward retirement will take place. I am so glad I bought a home I could afford, with a 15-year, fixed rate mortgage. There should be piles of litigation against the sub-prime lenders. Gradually ending the breaks for big corporations, while increasing wages would even out. As people buy more with their increased wages, profits increase and more workers are needed to meet the demands. That is real trickle down economy when the general public is at the top of the pyramid, not squashed at the bottom!
3
BJ Stone
// Mar 27, 2008 at 10:09 am
Ramble, thanks for the response.
But to everyone else: This is so typical. I get told to be “less divisive”, but then when I attempt to start a discussion about how to correct problems, I get exacly one response of any interest in 3 days.
It’s a microcosm of America today. We SAY we want politicians to quit bashing and being negative and instead offer up solutions, but do we really mean it? People like slbill and Vonster can’t wait to get in the face of anyone who says anything negative about the administration, no matter how true it is…but I’ve yet to see them ADD to a discussion, or offer up anything constructive.
4
postsimian
// Mar 27, 2008 at 2:29 pm
I meant to say something, but I’ve been rather busy with my own blog, and the 5 or so unpublished posts. I have too much to say these days, I think. It’s keeping me from saying anything at all!
Here’s my contribution: to fix the economy, stop giving tax breaks to the rich–they’ve already got money. Stop bailing out banks or companies that have shady business practices. Raise the minimum wage. Ease the tax burden on the middle class for a change so they’ll have the money to put out into the economy. While we’re at it, lower the gas tax to 2% until prices come down considerably. Any time gas is over $2.20 a gallon and oil companies are posting record profits, fine their asses good. Create tax incentives for businesses to operate in the U.S., bringing their jobs with them. Fix the educational system. End the war.
Anyway, I enjoy personal bashings. I think they’re fun to watch. Thing is, unless they’ve any merit to consider for the job they’re occupying/running for, then it’s a waste of time.
A candidate gets caught in a web of lies? Bring it on. They know someone who did something bad one time? Don’t give a shit. Proof they were in on the bad things? JERRY! JERRY! JERRY!
5
Brad Carter
// Apr 1, 2008 at 12:56 pm
I’ve been working on something along these lines. Haven’t had much time to read or comment lately.
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