How Would You Fix The Economy, O Wise One?
- 6 Comment
It’s been one week since the election and it doesn’t look like there’s been any magic fix to the faltering economy; once we had a new president wasn’t everything suppose to be better? If you believed that, welcome back to reality. From the gym to the office, there isn’t a single person who doesn’t have an opinion or idea on how to fix our economic downward spiral. Some of the ideas I hear have real merit and others are simply ridiculous, but one thing is for sure, everyone has a lot of passion.
As I brought up in a previous article, Is Our Country Made of Funny Money, perhaps the last 5 - 10 years of financial growth we’ve experienced as a country has been manifested based on credit. There’s clearly been a shift in our society from the “Save Money” mentality to a “Spend Money” addiction. It really doesn’t matter if the money that’s being spent is actually in a bank account, the customary approach has been to simply charge it and forget it. In order for our economy to start back down the track of prosperity there needs to be a revisit to a more traditional mentality of spending less money then your income. This would be a good starting point. With respect to the recent on slot of bailouts being handed out like candy by the government, perhaps it’s time that we let capitalism run it’s course and allow some companies to fail or succeed without using taxpayer money. As painful it might be in the near term, a correction within every industry from finance to manufacturing should provide for strong companies to persevere and the inefficient to go by the way side. These are just two ideas that will right the economic ship back to smoother seas.
Here’s your chance to voice your opinion and give your 2 cents on how to Fix The Economy. Let us know in the comments section below what you’d do if given the chance to run the country and create an ecomomic bailout plan.
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6 Comments on this post
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AverageGal said:
Very true - I definitely have an opinion, but I don’t want to be the
“in-charge” person of this big mess!November 14th, 2008 at 10:59 am -
BankVibe said:
We are undoubtedly in need of gov. assistance (ie. A Bail Out Plan)…but more importantly is how our government behaves financially once the dust has settled. The following administration(s) needs to shift some focus towards balancing our budget. Basically our country has maxed out 10 credit cards which were issued by China, Europe and India (among others) and is pretty much relying on kids currently in elementary school to repay this debt. We must attack the underlying issues of our economy once the short term problems are sorted out. Unfortunately fixing our short term problems means applying for one more credit card…
November 14th, 2008 at 1:27 pm -
Financial Fellow said:
Good article, Justin. I think that we just need to suffer through it and make it as painful as possible in order to teach the average American their lesson. Looking back at the Great Depression unemployment was 25%. That taught people to live more frugally and save. People today are too used to easy credit and a relatively good job market. Americans need to get their hand caught in the car door and drug around the block for a couple blocks before they get the lesson.
I’m tired of the dollar being beat up by foreign currencies, interest rates on savings being so low, and money being so cheap. We need to create some pain. Raise interest rates, don’t bail out the big 3 automakers, stop subsidizing farming, and cut the pork. You’re right about the average American needing to save more and spend less. The best way to fix the economy is to make it very painful in short term so the long term can look better. We need to stop enabling Americans poor habits and start getting tough.
November 15th, 2008 at 3:16 pm -
shane wahl said:
Homie, I like your site (by the way).
Let capitalism run its course (into its coffin) isn’t a bad idea. This collapse was NOT unexpected by any one with a morsel of intelligence. The mainstream media are a bunch of liars when they say otherwise. Since it wasn’t out of the blue, why should the government step in with money IT DOES NOT HAVE to bail out the failures?
Anyway, I would suggest that if we are to spend $1 trillion or more (since we are willing to spend more than that on an immoral war, I don’t see why we should stop with the spending) on failing businesses, we should certainly spend the bulk of it on industry, namely those industries that can make the U.S. into a leader again in MAKING STUFF. This has everything to do with new technologies that are “green” in that they involve making legitimate cars, building solar panels, building windmills, fixing roads, and constructing high speed rail. I see much of this as not just a credit issue (capitalism inevitably NEEDS the richest country to have its citizens spend more than they make to sustain itself) but an energy issue. Drops in oil prices for the time being should not mislead!
November 17th, 2008 at 2:34 pm -
Carolyn said:
I would start fixing the economy by first capping credit card percentage rates. Taxing rich people more. (I feel that people like Anjelina Jolie and Brad Pitt don’t really need a couple of million dollar homes). Also, cutting down on the salaries of richer people, athletes, actors, actresses, singers, government officials, etc. If my husband who makes less than $33,000, (This is with two jobs), a year while taking care of a family of three can legally along with the others who worked at a job can get a pay loss of 15% then I feel that others who make $100s of thousands or millions of dollars can too! I also would put a cap on the thieves who work in the medical industry. No charging of $1200.00 for less than a 15 minute checking on, scrubbing of a chin, wiping a few strokes of super glue, (That I found out you can basically buy from Target for less than $10). The government should let people do what they do, charge a bit extra, make a small profit, and be happy, not get people for a 100% markup of value. I would also get rid of the crap. (No things from China, make it good, or else).
December 2nd, 2008 at 11:31 pm -
bob said:
wake -up! gm has been screwing its customers for years, with the crap they have been producing. I bought two jap vehicles recently and the product is light years ahead of all the big 3’s products so time to let the floundering companies sink! good riddance, maybe the jap companies will buy them up and produce quality vehicles without the idiot unions pulling the strings.The time has come to deal with it and yes we all will survive and have a stronger economy in the long run.
we are the tax payers not the idiot polititions who pay the bills.December 4th, 2008 at 5:36 pm
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