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Thursday, September 1, 2011

A Centrally Administered Economy



                                                                                                                                      
Public works projects, infrastructure spending, easy credit, loose monetary policy,manipulation of exchange rates. These are indeed the current policies that the Federal Reserve and more importantly the President of the United States are actively pursuing to alleviate our current economic downturn. The President is scheduled to speak to the Nation on September 8th, and address a new round of job creation for the nation and it's unemployed. I am relieved to hear that he is working on this. As a matter of fact last year, and this year he has been quoted as saying that " as soon as I get back from vacation, jobs will be my number one priority. Now given the tools in his toolbox let's see what can happen.
                                                                           Public projects: Not all States have the crumbling highway's and secondary roads as Michigan, I have noticed in recent travels that Indiana, Ohio, even parts of Illinois could use some road work, but when it comes to roads, it tends to be relative, there are 50 States connected to the Federal Highway System currently and I am sure there are bridges to be repaired, curbs that need fixed, lanes that need to be added, warning signs to be constructed, high speed wireless towers that could be installed. All of this will take studies, engineers, laborers, raw materials, transportation, fuel, food, and of course capital. Rather than hurt the wages of workers who are the backbone of the economy with market wages, the President should sign an executive order mandating that the National Highway System is vital to the defense of the Nation. In conjunction with the Department of Homeland Security, funds could be allocated from multiple Federal Departments for the various projects, as well as say a 9-12 % devaluation of the dollar on the open market, and then those monies will be used to keep the wages of all the workers on all the projects related to the Highway stimulus above the market wage, and would probably be better off to have a separate mandate to pay at least 15 % above market for their tireless efforts to ensure the safety of our nation, the effect such a policy would have on the nation would be beneficial to children and families who would benefit from the guaranteed security that would be brought home in the form of a paycheck. If attracting initial capital for the project is difficult due to the stubbornness of those not willing to look at the country as a whole, Interest rates could be risen to attract capital in various banks, that will have the loans backed by Securities from the Treasury. This will be followed by tax exemptions for those who invest in the Highway bond system at any rate. After all again we are talking about National Security, and the Security of the Nation is of the utmost importance is it not ?
                                                                               Schools: Education is just as important to the nation as a Highway System, and tests continually show that our Nation is behind in mathematics, and science compared to other industrial nations of the world. This should be unacceptable to a nation that has a history of producing some of the worlds greatest scientist, philosophers, poets, writers, engineers, and industrialists. Americans have a long and proud history on the world stage, and should never have to face a decline in their living standards. To ensure the continuation of our greatness our education system should have the greatest priority in investment, only second to that of the highway system, and even then that should be a close second. Rebuilding schools that reflect the needs of the modern era, with high speed wireless systems, a paperless classroom, iPads for every student given to them thru the Education trust that should be established at the national level, that comes from funds taken from subsidies that are currently given to corporations, and wealthy individuals, we can create a national standard that can be updated in real time thru the Central authority that will be strengthened in Washington, by giving a local control to the Department of Education in Washington. No longer will we need to waste valuable resources and time, on books, which are an anachronism to a time when waste was rampant, the President could outline a new more modern version of strengthened and enlightened Department that reaches to all students, and teachers, and administrators instantly thru an application say on the issued iPads, that sends messages to all in the student body, and faculty's that dictate changes made in a subject, say a revised and more enlightened view of history that reflects the feelings of other cultures about the American revolution and it's impact on the environment. The technology that would be needed for such a system would demand the best of our IT Departments thruout the nation, and with Washington steering the course, and direction, and providing the funding for these improvements, the lives of the people will be further enhanced thru the cooperation of government, and business. It will be in the end however dependent on the successful leadership only our President could bring to this situation. He alone has the fortitude and insight necessary to guide us away from selfish endeavours, and must plan for these projects for our benefit, and the benefit of the nation, and for those who refuse to follow those policies due to a willing lack of understanding of the new order, they should be denied access to contracts to participate in such programs. Why should individual concerns in economics outweigh the needs of the people at large? Clearly the type of spending necessary for the Highway and Education improvements should go to all the people, and not just a small minority of private owners who show no concern for the good of all the people.

                                                                               The Federal Treasury can create a bond program using existing National Assets to use as collateral to issues loans to small, and private business for growth, and employment, coupled with a complete tax deduction on the health of workers, and their families, as well as Insurance policies for accidents, and long and short term benefits for disabilities. These policies will attract and keep labor in the market place due to the incentives necessary for the employers, and employees to create a harmonious work environment, working for the benefit more as a Nation, rather than a private concern, the incentives employers need to attract workers, and then to afford workers must come from the Federal Government. The President will I am sure wisely choose to use every natural resource to provide the proper capital to be loaned to small shops, and concerns that will be necessary to whittle away at the unemployment that is plaguing the Nation. It will be imperative for employers to think more along the lines as providers of service to the people, rather than to selfish concerns for consumers, but in the end providing for workers will be providing for both the consumer and the worker. To this end the President could take a bold step forward for the nation and mandate a slightly longer work week, to keep the nation more productive, but then also follow that mandate with longer periods for vacation, and travel, in order to keep families together, and to allow more rest for a productive work force that will be the envy of the world.
                                                                          These simple approaches to the economy would spur more growth, and wealth that could ever be achieved by private industry, it is only thru the planning of government with nothing more in mind than the security of the Nation and the Welfare of it's people in mind. No longer should private enterprise dictate the success or failure of a Nation, our modern age requires that bold leadership is needed to ensure that the welfare of it's people are addressed as a whole rather than the welfare of a few individuals, our President needs the support of the people to push these projects thru, and to override the greed a a stagnant political philosophy, and it's selfish backers, who are only concerned with the old ways, which are no longer appropriate for a modern economy.


                                                                  And in case you think I have flipped my lid, have woke up with a transformation of the brain, or there is a Brownshirt standing next to me with a pistol and my head........... read and research the economics of the National Socialist Party and there rhetoric. The basis for our current approach to our economic malaise is identical to that proposed by Adolf Hitler to the German people in 1932, and 1933. Easy credit, loose monetary policy, infrastructure spending, control of education, devaluing of the currency. That is not to say that I believe the President is Hitler, however I do know for a fact that his economics is exactly the same as a fascist. In fact they are identical. Watch his speech, listen to his proposals, and remember next November as the unemployment grows, what the policies are that are in place, also keep in mind that the United States was made great by freedom, sound money, and private enterprise.......... and to maintain that greatness we need more of the same, and more reflection on the absolute importance to liberty and prosperity. It's your country, and it will only be as good as you choose to make it.