7 Steps to Riches – How To End The Recession

Double Dip RecessionWe’re in a recession. We have been since 2008. The people who tell you that we are in a recovery are lying to you.

There is a thoughtful piece over at Invested Central today. John Hopkins makes a very compelling case that we are, in fact, in a recession.

I take it one step further – we never left the recession.

The only way we were in a recovery is by the most technical definition.

$14 Trillion in debt. 9.1% unemployment. Anemic growth. $4.00 gasoline. Crashed housing market.

What the hell recovery is Obama talking about?

If the government had not spent a trillion and a half dollars on non-sense (TARP and Porkulus), enacted a massive new set of costs and bureaucracy (Obamacare), massive “quantitative easing” – code for stupid monetary gimmickry – we’d likely be much better off.

The housing market should be allowed to crash. Financial institutions who played with these junk securities should be allowed to crash and burn. The market should be allowed to correct itself. That, coupled with a new business friendly government will see new confidence in America and a real economic recovery.

7 Steps To An Economic Boom

  1. Throw Obama out of office – restore confidence in government
  2. Eliminate Obamacare – save trillions
  3. Cut government spending by 30% across the board – reduce debt
  4. Permanent capital gains tax cut to 10% – stimulate economic activity
  5. Reduce the top marginal tax rate to 25% – stimulate economic activity
  6. Tax breaks for domestic oil drilling – reduce gas prices
  7. Deregulate EPA – reduce energy costs

We do this, our economy EXPLODES.

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Comments

  1. I find your “7 steps to an economic boom” a much better plan than the one just proposed by the so called “Jobs and Competitiveness Council” appointed by Obama.

    To create jobs you must create economic growth first. The jobs Council seems to think it in reverse. I made an analysis of their proposals at my piece called “The Council of the Courtiers”.

    Good job Harry.

    PD. We like your blog and we are going to include it in our “Favorite Blogs List” with a link to you. Congratulations on your Blog.

  2. Thanks so much! The “Jobs Council” is a bit of a joke. Haven’t they convened several times over the past couple years? Just another council, summit, commission – all show.

    Thanks a million for the kind words. I’ll be over tour way to check things out!!

  3. Good strategy to save the richest.

  4. How does this “save the richest,” John? These seven steps are simple and would have an dramatic impact on every person in the USA.

    First, restoring confidence in government is a must. Not only does Congress have an abysmal approval, so too does the President. How does restoring confidence “save the rich?”

    2) Eliminating Obamacare – this program is going to cost trillions of dollars. TRILLIONS. We already have Medicaid for the poor, Medicare for the elderly. Why spend trillions on overlapping programs, especially when the individual mandate is so clearly unconstitutional? Again, how does this “save the richest?”

    3) Cut government spending 30% across the board and reduce debt. Again, how does this “save the rich?” Even a 30% real cut would only put us back to about 2005 levels of spending. So you are saying that under Bill Clinton, we had draconian budgets that only served the rich?

    4) Permanent Cap Gains tax reduction. So let me get this straight: I work for wages, pay some 40% of it to federal, state and local authorities in taxes. I take what’s left and invest it in my ETrade account and if it makes some money, I have to pay taxes on it – AGAIN. Reducing that second (third?) tax rate is “saving the rich?” In a world where a huge portion of the population are invested in 401k’s and other investment vehicles, Cap Gains does not just impact the “rich.” By the way, who do you consider to be rich? By what standards do you arrive at your conclusion?

    5) Reduce the top marginal rate to 25%. This one actually does only apply to the top income earners. But with good reason: Who provides jobs? The poor? No, the top income earners do. Find me a poor business owner and I’ll show you a business owner with no employees. Show me a rich business owner and I’ll show you a job creator. If people keep more of what they rightfully earn, they will either spend it, save it, or invest it – all good for EVERYONE.

    6) Tax breaks for domestic drilling. I paid $3.80 a gallon to fill up yesterday. So if we have more domestic oil production, how does that “save the rich?” Will it not help to lower prices at the pump? Do only “rich” people drive? Do “rich” people really care whether gas is $3.80 or $2.00 a gallon? No, but the poor do.

    7) Deregulate the energy industry to reduce energy costs. See #6 above.

    So… It seems, John, that your 6 word phrase is big on demagoguery and short on reality. Hopefully, you’ll reconsider the misguided nature of your comment and begin to see economics through the clear lens of common sense.

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