Economy

The American Economy

A healthy economy is vital to us all, so what is the single most important thing that drives a strong and healthy economy?
I have asked people of various professions, professional, blue collar, white collar and even 2 congressman and a senator and pretty much get a different answer each time.  Yet all agree on my counter answer which tells me they have not really thought about it with a broad view and are focusing on specific sub sections that are important to them.  This is fine, we all focus on what is important to us. However in order to make things better we need to think beyond our own needs and look at a long term view.

So what does drive the economy and is the single most important thing to success?
Consumer Spending!
If people have good jobs with discretionary income (that means not tied up in cost of living and basic bills) they will do things with it.
Savings in a bank, IRA or other long term investment does not really help the economy but helps you towards retirement.  This is still a very good thing.
Investing in the stock or bond market can help other companies or government programs grow and get you money down the line.  This is also good.
Buying things or going out however drive the economy! Republicans have used this since President Ronald Reagan "Trickle Down Economics" to justify tax breaks for the wealthy class.  They say that tax breaks for the rich lets them invest in companies and the stock market to improve the economy and create jobs.  Unfortunately history has shown us what most high school students could tell you. It does not work.  Old style Democrats and Progressives tell you that higher wages will result in increased spending. Of course businesses do not like the idea because it increases their costs.  Do not rail against them for that, business owners should look after their business just as you should look after your own interests and family.

National Debt

The Current state of debt

How "Voodoo" caused most of the national debt

So what would I do if I were in charge?

Increase the minimum wage.
Consider tax breaks for R&D
Promote job growth
Prioritize Government spending and lower the national debt

Increasing the minimum wage makes sense over wealthy tax cuts.  Give 100 average Americans $1,000 and they will maybe save or pay off debt but will spend at least some of that on consumer goods or just going out on the town.  Give that same money of $100,000 to a wealthy individual and they will save most of it.  It does not make as big a life changing event to them and they often have most of the stuff they want or will soon.
Every state that has raised the minimum wage has shown an increase in local spending and business growth, especially small businesses and restaurants.
As businesses costs increase from labor they find they have more customers and people spending money,  So overall win.

R&D Tax breaks are a way to encourage businesses to spend money on long term growth.  Ideally they should do that anyhow and a Free Market republican would prefer that.
However history shows many companies worry only about the next quarter, so maybe its worth some corporate welfare to push things along.

Promote Job Growth goes back to both the above items.  More jobs, especially higher paying jobs mean more happy Americans and more consumer spending which means businesses do better so they can hire more people which increases consumer spending and we have a nice healthy and growing economy. Every politician and President promises job growth but how much of it is real?
Infrastructure spending bills help out with construction jobs and those workers are spending money on things so that is good.  However a big project is short term and after the Highway, pipeline, bridge or whatever is built the jobs go away.  Now you have a bunch of unemployed construction workers trying to find a job.
Mining and drilling provide nice and often high paying jobs but when prices go down or all the oil or coal is dug up from a site those jobs go away.
A massive tax bill promising jobs for a few years but raising the state or national debt is a poor tradeoff.  Eventually it makes things worse so it is a short term solution and long term tragedy.
Also we are losing manufacturing jobs to cheap overseas labor, but mostly due to automation.  New factories make more with fewer people.
Government and Business need to think about this and work on long term solutions that create new and long term jobs.  Also new industries or cutting edge products sell better and are things America can sell not just to our own people but to other countries.  Bring the cash home.

The next time you vote (or if your politically active talk to your politician or stage a sit-in or protest) consider this and think not just about the now but about your and everyone else's children.
We cannot keep trying the conservative agenda and hope that rolling back the clock and wishing for the "good old days" will work. We must take our stewardship seriously and consider what will really work.

Prioritize Government spending and lower the national debt

This is likely to be the most contentious section for most of my readers.

We need to spend money on protecting and taking care of America first, other countries are a lower priority.  However helping other countries with programs like national aid and NATO do benefit America aid programs build good will and NATO is a mutual defense pact and America benefits by helping to prevent another World War.

• Military Spending: We need a strong military to defend ourselves. However we do not need the biggest military, nor do we need to buy new weapons and toys just for the sake of doing so.  Many programs are pork barrel politics and an effort by Congress to pay off big donors such as defense contractors.  The government should not be in the business of keeping specific companies alive, though we do need to keep our military systems current and effective.
• Intelligence Services:  This is where the Cold War was fought and with cyber threats is even more of a concern.  We need to keep a strong intelligence service in play, this includes the CIA, NSA,  Homeland Security and lots more.
• State Department: The mission of this group is to keep us out of war by working with countries and easing tensions.  It is a vital organization.
• Veterans Affairs: This is composed of 3 sister agencies that take care of our military after they leave the service. These are important as a way to take care of those who risked or lost their lives and livelihood to protect America.
• Department of the Interior: Most people think this is just for our National Parks, but the Bureaus it includes cover Indian Affairs, Land Management, Ocean Energy Management, Reclamation, Safety and Environmental Affairs, National Parks, Surface Mining and Reclamation, Fish and Wildlife, US Geological Survey.  These are all about making America a better and safer place for Americans rather than Corporations so are always endangered by Republicans.
• Environmental Protection Agency: Looks our for the welfare of America by trying to keep pollution to a minimum. A popular target of Republicans because it is perceived as anti-business this is a vital agency. Does it have too many or bad regulations? Possibly.  However the mission is vital and this department needs to be protected and improved for the betterment of all America.
• Department of Energy; Tries to promote our national security and independence by promoting American energy sources. This is a key area for long term job growth as they can help promote new energy sources which not only makes America a better place to live but can be exported to other countries whether its actual energy or companies that are the best in the world at making new energy sources such as Solar, Wind, etc.
• Department of Education:  In my opinion should be transformed to a watchdog agency.  Rather than trying to tell states how to run education it should monitor and report to the pubic how well schools do.  Also go after or help a state go after any school or university that defrauds its students.  Improved education is vital to job growth and a stronger, safer and happier America.
• Health and Human Services: A healthier America is a better America!  They help prevent abuse by doctors and insurance companies with things like HIPA and other regulationsas well as provide info, research and other services.
• Medicare: Expand to cover everyone and get insurance out of the equation for basic health care.  Every other first world country except America does this and they pay less (often half!) of what Americans pay for health care.
• Infrastructure: Keeping the roads open and in good repair is a vital government service.