Economy
Gravy Train or train wreck?
Our current economic situation is a mix of joy and pain. Never before have Americans enjoyed the prosperity of recent years. Unemployment at 40 year lows, taxes coming down, the prices of goods and services at levels that allow Americans to treat themselves to the latest consumer electronics, pampering, food trends. How long can this go on?
Recent developments in the economy threaten to undo all of the hard work you have done. Energy prices are skyrocketing due to speculators and overseas suppliers. Food prices are rising due to the diversion of corn, sugar cane and others to ethanol production causing shortages in the food supply and prices to jump. Can this trend be slowed or even reversed?
The answer is yes. It will take hard work, and sacrifice on the part of everyone from the top down.
My proposal in a simple one, accountability!
Starting from the top down corporate executives, elected officials, union workers, small business owners and employees must work together to encourage reinvestment in America. Corporate executives should be encouraged to fore-go the $250 million dollar compensation packages and leave that money in the company to invest in new technologies and give fair compensation to those who actually do the work. Elected officials should be encouraged to fore-go 60% of their compensation in order to live closer to the average American. The vast majority of CEOs and elected officials have no idea what it takes to survive on what they pay their employees. These exorbitant pay packages discourage improved service, reliability, technological advancement, production.
Union Worker compensation should be looked at carefully. Many union contracts contain ridiculous demands such as covering Viagra for retirees, downtime compensation (if there is not enough work some workers are paid to just show up), and the like. Many of these contracts stifle market competition by unfairly burdening manufacturers with unnecessary labor costs, which in turn add to the cost to the consumer.
Rebuilding the economy
The first step to rebuilding the economy is to bring down the cost of transporting goods. Fuel costs have risen 77 per cent in the last 12 months. Many hauling companies are finding that after paying for fuel and the driver, they are not making a thing. They are barely breaking even. Some are losing money to move goods, but are holding on hoping for a change. Here is a short term solution to the fuel price problem.
1. Temporary suspension of Federal, State, and local highway taxes. (120 days)
2. Eliminate ethanol. Recover the $1.08 per gallon federal subsidy and offset the Federal Highway Tax with that recovered money. Ethanol has been proven to reduce fuel economy, reduce vehicle performance, has not reduced emissions, and causes some vehicles to run so poorly that they are increasing harmful emissions.
3. Eliminate the 33 "boutique blends" of fuel. Establish one blend, cleanest burning possible, and mass produce this blend at every non specialty refinery. Lower overhead for the refiners will lead to lower cost to the consumer. Every car can run on 93 octane, but not every car can run (correctly) on 87 octane.
4. Reopen all idle refineries, and mass produce the selected blend. Construct 30 new refineries to help with capacity. Increased production leads to lower consumer cost.
5. Increase vehicle fuel efficiency an additional 50%. This is well within current technological capability.
6. Reopen capped domestic oil wells, increase domestic drilling, shale oil recovery, coal to liquid, negotiate with smaller foreign suppliers to reduce import costs and help them to become viable competitors of middle eastern oil suppliers. Reward smaller suppliers with larger contracts if they will underbid the major suppliers.
7. Require oil speculators to take physical possession of the oil when purchasing futures positions, and levy a 25% windfall profit tax on positions sold.
8. Begin moving away from fossil fuels for electricity generation. Increase nuclear power, re-examine hydroelectric power generation, invest in better solar power technologies, reclaim methane from landfills for use in municipal vehicles.
9. Encourage increased public transportation. Expand coverage areas where feasible, increase use of cleaner burning fuels like LNG, LP, Methane for municipal vehicles within urban areas. Encourage more Park and Ride facilities to help reduce traffic into and out of major metropolitan areas. Incentivise businesses to offer shuttle service from Park and Ride facilities.
10. Offer tax credits to individuals for ride sharing, with a minimum of three occupants per vehicle, to the same or close destinations.
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Invest in American made goods
The trade deficit in America has widened. We are buying more foreign products and letting more American manufacturers close up in favor of lower prices. The cost in jobs, and taxes is more than the savings we receive at the register. An estimated 70% of all products on the market are from foreign manufacturers.
1. American steel: Once American steel was the steel to buy. We had the best metals in the world for construction. We need to make American steel the preferred steel again.
2. Consumer electronics: America once lead the world in electronics. Our products were long lived, and our service was tops in the industry. We need to recapture this segment of industry.
3. Automobiles: American automobiles were prized around the world once. We can build cars that global consumers want again.
4. Agriculture: America was once the world's breadbasket. By allowing farmers to produce more the cost of food will come down for Americans and help to provide for the needs of developing countries. The diversion of some produce to fuel production has unfairly hurt those already struggling to feed their families, and disrupted food supplies around the world.
5. Medicine: America was the premier country for medical advancements and medicines. Today we are losing good doctors due to attrition. Fewer students are entering the medical field due to skyrocketing education costs, and the rising cost of malpractice insurance.
6. Education: America was once the leader in education. Today we graduate 30% fewer high school seniors than we did 10 years ago. Our schools have ceased being education centers and have become social engineering centers.
Personal sacrifice
