OK, I am starting to get upset. It doesn't seem to stop. Are we to go through the New Deal again. Increase taxes, more government programs, and make work jobs? Massive public works may be necessary because as a country, we have ignored our infrastructure. But that isn't the way to generate long term jobs. If we start working on new roads, how many new jobs will this create. Further, the kind of jobs these create are skilled with heavy equipment.
I just finished reading REAL CHANGE by Newt Gingrich. I feel he has the right idea. The US government main business is governing as small as possible. National Defense, International Relations, and domestic policy is rightfully the government. But lately we have moved beyond that and actually have engaged in managing the economy. Here is what I think:
1: Reduce Taxes. I agree with Speaker Gingrich. Remove current tax policy and change the mission of the IRS. Go with a Flat tax or 17% and remove income tax on corporations. Remove or vastly reduce investment income.
2: Encourage savings. This is related to the point above. Removing or vastly reducing corporate taxes creates new permanent jobs, not make work jobs. Removing or vastly reducing taxes on investment income will create incentive to invest and save.
3: Encourage business to invent and create new solutions. The speakers idea here was to set up competitions, and incentives to create new solutions.
4: Work to create an environment in the US that encourages new business rather then discourage.
If we start working toward this, I believe we will pull out of this mess sooner than later and be a much more fun place to work. Also if we really concentrate on fixing our education process, we will raise a new crop of young adults who are well trained in math and science.
More later.