I would suggest everyone read this Piece, though I don’t agree with it at all. The Solution to economic recovery lies not in flooding the Markets with Cash, but with actually putting people back to Work. I get static all the time for the simple demand that Someone provide a coherent outline for economic recovery. No one wants to put their Name and Reputation on the line with a definite list of objectives. The hidden rationale behind this lack of effort consists of a lack of belief by everyone that anything will make any economic difference. At this conjuncture I perceive that I must take the first Step, and be laughed at; the trick here being that economists must come up with alternate options to criticize myself. So here goes:
1) Let all Tax Cuts expire–go back to the Tax Codes of the mid-1990s.
2) Bring back normal Interest rates, and stop lending banks money; a creature obviously deformed and wrong.
3) Reinstate a Draft with a Statement foreign deployment will be totally Voluntary, unless Congress goes to the trouble to actually declare War on somebody. The Enactment will expressly proclaim that the Draft will last only 8 months–the period necessary for Basic and Specialty Training, and will be paid only Training rates of Pay. The goal will be to train some 40% of the graduating High School classes.
4) Pass a Pavement Resurface Act which stipulates that the federal government will pay Minimum Wage rates to States and Localities for all labor employed in resurfacing Streets and Highways, irregardless of actual Pay given. This ensures that Employers will maintain a labor intensive program of Road improvement.
5) Like Acts will also be passed for employment for the Forest Service and Firefighting agencies who need to clear brush and establish Firebreaks. The Forest Service and lumber industries should be encouraged to enter into an expanded Tree replanting activities by this same federal payment of Minimum Wage rate per hours worked.
6) Pass a Business Failures Act where failed Business and Industry become the property of the federal government, until such time that all unpaid taxes have been paid–through the Sale of Capital or Property, or payment by the bankrupted Business Owners.
7) Pass the Accounting Tax Act where Corporation and Business pay a per-Hour tax on all hours of labor devoted to Tax Accounting or Litigation services above 25 hours per $1 million Dollars of Income per year. The Tax should be 25% of the claimed labor deduction. The federal government will not pay for finding Tax loopholes.
8) Corporate seminars, Meetings, or Recreation activity will not be tax-funded. Tax law will be altered to refuse Tax deductions for Rental fees for conference centers, Motel and Hotel room rates, Travel expenses, or Meal allowances.
9) Passage of the Hazard Duty Act where hazardous duty as submitted by Superior petition will obtain a 2-Week paid Vacation for the Individual firefighter, policeman, or military personnel for himself and his family to an established number of American Resorts–paying for all Transportation, Housing and Meal Costs.
10) A budgetary Act will be passed stating that all Civil Service positions at the federal level will be assigned an operating budget, and that the Civil Service personnel will get 25% of all saved funds coming in under budget. This will lead to both extreme effort on the part of such personnel, and more accurate Accounting budgets. lgl