Friday, May 11, 2012

What Works in Washington to get our economy going May 11 2012

This economy is stagnant because business leaders have no idea what future financial regulations and health care are going to cost them.  Planning requires some level of where we are going, and at this time, all we hear about are how we need more green jobs, and healthcare.  These are the fundamental needs of our country.  There is an enormous economic engine waiting for some sign of Washington being able to buckle down and cut spending in meaningful ways, so we don't crash our economy.  Blowing the debt limits, printing money, and seeking to borrow more are all signs of not facing reality.  When leaders like Paul Ryan step up and show a plan that would make the difficult decisions on cutting back, and putting more areas of the economy into the realm of free markets, they are chided by our president as leaving old people out in the street.  Promises made to continue as usual are a nice sounding poison pill that will hurt more later.  No politician can be as honest as they need to be or it will cause panic in the streets.  Incremental change will be needed, but it must be deliberate and moving in the right direction.  Healthcare moves in the wrong direction - we need more decisions to made in the realm of markets - increasing health savings accounts is an example of this.  We need to stop making idiot promises about taking the risk out of markets.  Markets need to adjust at times, with winners or losers, or we end up trying to fund more losing ideas.  Increasing tax rates on the wealthy to pass more to the less wealthy doesn't help anyone.  It knocks down those who are most capable at creating jobs, and doesn't help those less wealth.  When those with less decide they want to work harder and take advantage of opportunities that millions have sought and found, real wealth is found.  No government program gets credit for this type of initiative, so it doesn't get much airplay.    We have a fundamental issue of making it clear what works, and what doesn't.   Liberalism is basically a construct of attractive sounding outcomes, without taking into account the reality of what motivates people, and what is truly fair.

This is a quick braindump on some key economic ideas that I believe are in need of being communicated.  More to come, and also postings on the silly, and the God stuff.

No comments:

Post a Comment