In my last blog article I talked about the magnitude of the national debt and the $100 trillion of unfunded liability the government has incurred with the Social Security system.
The government is short on meeting its current bills and will be significantly short on future promises. The USA is living beyond its means.
My opinion is that Congress is uselessly rearranging the deck chairs on a ship that is slowly sinking with too much debt.
Over the past several decades, the U.S. economy has become increasingly intertwined with the global economy.
From foreign investments in U.S. companies, to overseas outsourcing, to giant multinational corporations doing business around the globe, we are inextricably connected to the world market.
The current administration and Congress are making a futile attempt to regain choice and control over what has become a world economy, assuming their course of action will somehow mend the U.S. economy.
This approach will only lead our country to retrogress rather than progress. These are misguided efforts. The federal government is essentially investing in the wrong places with just more inefficient government programs.
We need to place choice and control in better hands-our hands.
If the $3.6 trillion this administration plans on spending to stimulate the economy were placed in the hands of the average American entrepreneur, I’m convinced the economy would be turned around within a year.
If the $3.6 trillion were credited to American tax payers in less withholding tax for several months, I’m sure people wouldn’t be investing the money in GM (Government Motors) stock!
My ideas for an Economic Stimulus Package that won’t cost tax payers $3.6 trillion would include:
- Educating people on how to raise their credit score by 30 points or more, which would put $700 a month back into the average American’s monthly income.
- Teaching people how to take ownership of their future rather than rely on the government to take care of them.
- Rewarding people for saving and investing rather than taxing them for doing so.
- Instituting a flat income tax of 15 – 20 percent for everyone, along with a national consumption tax.
- Privatizing Social Security.
Since there is little chance of government giving economic choice and control back to the people, what we can do is empower ourselves. Sound financial education is the key.
Doug Andrew
Photo Credit Jeff Keen
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