Way Out of the Box

Bush and Obama may not be able to await the turn of the Tide (Office Exchange). Unemployment numbers will not give the luxury of calm, deliberate planning. Check the article for the evaluation of the ISM indexes, No. One Bad in 26 years. Wages are not matching Prices in Inflationary terms, and We are at 6.5% tending to 8% Unemployment (Advertiser Warning: it could accelerate in post-Christmas doldrums). We need some fast, and fast to implement, Solutions; while Economics does not really do fast! We are trying to counter economic tendencies already built in over Two Quarters, knowing that any Plan will take another Quarter before it is even noticed on the economic Screen.

I decided, in the goodness of my heart and hoping to coup respectable Economists, to attempt to think Out of the Box; meaning it will all sound pretty mundane. My first Thought is that We need to increase Consumption, even if it is a Lie because it will only be Government Spending laying in Sheep’s Clothing. I would suggest expansion of the Military Reserves by One Million men. The election of Obama, while it does not mean an actual lessened Threat to Military personnel, does calm many fears of Military service. We need the trained cadres, and there are many Incentives which the Military can offer: I would suggest a $2000 Signing Bonus, guaranteed 3-months of Basic Training, 3-months of Training in a Combat Service, and a 3-month Training in a Combat Support Service which can translate into Civilian occupation; all before assignment to any Overseas unit. The Downside will be active Reserve listing for Six years. A Supplement in the same Bill will be a $200 billion Restoration of Combat Units deployed Overseas.

I currently oppose a Stimulus Package similar to the one initiated earlier this year, quite assured that it would have as much effect. Extension of Unemployment Benefits stand as necessary, but We need further Moves to actually increase Employment. I would suggest what will obviously become a long-term industry: a $300 billion program to get local School Boards to establish Day Care Centers for Children, employing out-of-Work Mothers. Prices would have to be competitive, so as not to undercut current Day Care provision. The $300 billion would be for facility construction, with School Boards expected to run the program at a Profit.

All of my Options are Expensive, but it is a well spent as giving $350 billion to Banks, which they will not spend or lend. We need the Military buildup, and We need the supervised Day Care with proper facilities. This may seem highly Socialist to Conservatives, but at least I am not buying Banks and possibly Car companies with Tax Dollars. lgl