The necessary and recommended course of action to get the economy back on track is straightforward.
First, repeal the stimulus package that has not yet been spent. If the government must enact a fiscal stimulus program, enact a permanent tax cut directed at both consumers and businesses.
Second, reduce the deficit by cutting government spending. Start with reductions in healthcare and pension benefits to Congress and the civil service. Everybody outside of government in America makes a substantial contribution to their healthcare and pension costs. Almost every business in America has gone through the pain of becoming lean in order to survive this economy. Washington should lead the way by becoming lean as well.
Third, forget about healthcare reform and cap-and-trade until the economy recovers. America cannot afford them at this time.
Fourth, get out of the corporate turnaround business. Sell government interests in bailed-out companies and pledge not to contribute another nickel of taxpayer money to corporate bailouts.
If the administration and Congress take these actions, consumers and businesses will quickly regain confidence in America’s economic future. The economy will then begin its natural recovery process.
Your thoughts, America?
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