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Monday, July 21, 2008

the economy

With the housing correction and the rising oil prices everyone that has influence over different aspects of the economy have speculated on the different ways we can remedy the short comings that have been made evident when the housing correction and rising oil prices collided.

The economists would prefer a quick fix or the band aid effect when it comes the economy, but the one real problem is that there is no one specific remedy that can cover every aspect of the economy. The one real remedy is something that has aspects that relate specifically to the different aspects of the economy that can be dealt with independently rather than a blanket plan that cover all of the economy.

When the housing correction and rising oil prices hit independent of each other they adversely effected the economy negatively which shows that there is no such thing as a blanket plan when it comes to the economy. Any real plan has to be able to deal with each factor that makes up the economy so it can be corrected as needed to keep the other aspect of the economy in check so there is a lesser effect on the economy than when the housing correction and rising oil prices happened.

Every one of the people who are capable of understanding the data all has their own versions of what should be done and what should not be done. There lies the problem, what is the wrong thing to do in one person’s version may be something right in another persons version, this is due to the interpretation of the available data that they both read. With the wording in the media it sounds like they are not looking at the specifics of their plans that would cause reactions in other areas of the economy that the economists don’t feel are related to what is involved with fixing what went wrong.

We need to look at the economy not as one specific entity we have to look at all of the parts of the economy to understand how one aspect of the economy will affect another aspect whether directly or indirectly through another aspect. Without a plan to deal with each part of the economy individually we cannot hope to actually deal with the economy as a whole which means that everything that happens that can go from the top down with regards to the economy will continue to affect various aspects of the economy with no real idea as to what direction it will take or what should be done with the problem.

Regardless of what is done it will not be as quick or as palatable as people would like but it has to be done without regard to who wants what and when. By allowing interference in any real remedy, the remedy will never fully take hold and will not be adequate.

The real question is; are those who can put the plan in place willing to do what is needed when needed?

Monday, July 7, 2008

the dynamics of the U.S. Economy

Given the dynamics of what has been happening with the U.S. economy due in part to the housing market collapse and the continually rising oil prices, the U.S. economy is going to end up causing long term problems not just in the U.S. but all over the world. The U.S. dollar isn’t the highest valued currency out there but it given the problems in the world markets since its slide downward shows that it is one of the major currencies that help keep the world’s economies going. This by itself has shown that as much as people like to complain about the way the U.S. does business, we have enough influence on the world stage to cause internal problems for other countries just by having internal problems of our own.

There has to be a real involvement from all public and private sectors involved in the U.S. economy in order for the real problems that are plaguing us. The unfortunate part of what is happening with the U.S. economy is the finger pointing that everyone does which only worsens the predicament that we are currently in due to everyone believing that they are not the one that is causing the problem. Everyone who has been pointing fingers at who should be blamed, tend to want everyone to entertain their ideas as if they are the only ideas that are valid.

What is needed is for an organization that has a vested interested in making sure the economy succeeds that is independent of both sides to actually see what needs to happen to protect the economy through giving protections to both sides that force each side to do things certain ways. The normal way that people on handle problems with the economy is for both sides stating that taxes should be reduced but in accordance with how they feel they should, normally with one side stating that the people who have the up front money to hire people should get the tax breaks while the other side states that the lower and middle classes should be the ones to receive them instead.

That mentality does not do the economy justice without first understanding where the underlying problems are with respect to where the most money is spent and why. Granted the top few percentages of income of the United States can out spend all other income levels per person but as income level go, in general most of the spending comes from people who have to do the grunt work so to speak which are in the lower income levels.

This would suggest that any tax breaks need to be targeted to areas that can do the most to help restart the economy rather than blanket cuts to specific income groups, even if it means that the tax cuts be for specific company tax ID numbers for companies with the most potential to hire new employees due to the availability of the products and ability to sell them at a reasonable price for the lower income levels.

We can no longer afford to dance around certain subjects as well, this would be due to the fact that each thing we negate to deal with pet projects or intentionally use as a carrot dangling in front of a donkey to get pet projects approved. Every area of the country needs to have things done and instead of trying play with the lives of people in other districts or other states, the projects that require federal funding should be prioritized so that way what is needed the most gets done first before something that isn’t as important does.

The government has been in charge of maintaining the infrastructure for the streets and highways, but in areas where there is a high volume of traffic for specific purposes the business’ there should be helping to maintain the infrastructure due to the fact that, they are the ones with the vested interest to make sure that the infrastructure is maintained to a specific level. There is one problem with it though and that is the companies that rely heavily on that infrastructure feel that it is the government’s job to maintain it but the companies squawk when they are told by the government that it is either maintain one thing or maintain something else with the money the government does have to maintain what is required of the government.

The government doesn’t help either with protocols that do not always permit interagency communication with matters and protocols that are may be needed in some form but are too costly due to man power or due to the needed supplies to maintain those protocols. What is needed is a way to allow interagency information exchange that maintains the protocols without compromising the integrity of the agency or the data that it requires to be kept inside that agency.
Both the private and public sectors have to shoulder what has happened to the economy instead of pointing fingers at each other for the short comings of both that caused the economic mess to begin with. If either side refuses to shoulder its share of the responsibility then it shows that they are more concerned with the short term band aid effect that has allowed us to limp along till now.

The one question should be; who can do what and when to reverse the negative effects of the spiraling economy?

Wednesday, July 2, 2008

opinion on domestic issues

By no means are international issues less important than domestic issues but when it comes to what is needed for the country is a real understanding of how international and domestic issues influence each other before deciding which is more important.

At the moment international issues are greatly influencing domestic issues and policies to the point that our economy is facing a real down turn in large part to our dependence on foreign oil. With that said our policies on domestic issues have to change so that our dependence on international issues is reduced.

Our policies have been to help international issues but at the moment if we forego dealing with out own domestic issues in an effort to help international issues then we will eventually be reduced to a third world country.

With the cost of oil skyrocketing, everyone is feeling the pinch both domestically and internationally especially those companies that afford to continue to do business as fuel and energy continually goes higher. One good way of dealing with these costs is to find ways of offsetting the cost of energy production that would also prop up the economy, this may include commercializing alternative energy sources that are usable but still need work to perfect them. They could be commercialized to deal with a number of domestic issues such as reducing our dependence on oil, creating jobs and to help the environment.

If commercialized there would be more people available to learn how those alternative energies work which would allow for others to be informed enough to give input on ways to improve on the technologies involved. This could be a way of dealing with the domestic issues that would probably directly impact how our domestic issues influence the international issues especially when it comes to how people deal with issues energy issues and more importantly how the international community deals with the dependence on oil.

The commercialization of alternative energy sources can only be part of the overall package with dealing with domestic issues. We need to deal with the deficiencies we have in other aspects that directly factor into how our economy hold up such as education. It has been shown that our public school systems are lagging behind some of the nations that are not as large and influential as we are.

With out the educational foundations that are fundamental to how well our country runs then there is, no way we can effectively stem any downturn of the domestic economy. It is a proven fact that our education system is failing to properly educate the nation’s children that are in the inner cities where there is the least amount of money allocated for what is needed, even though the teachers are held accountable for the failures of the students with regards to the standardized testing that is required.

The educational system has shown that not every student is capable of learning in the standardized methods that is used through out the country and that there are students who have proven that they have learned the subject matter but they are not able to show that on the standard versions of the tests. These things have to be addressed in ways that permit them to become productive members of our communities rather than a drain on them due to the short sightedness of bureaucrats who do not have any understanding of what is needed to educate.

Without an educated population we cannot hope to deal with issues that are plaguing our domestic issues due to not having people who would be capable of dealing with the problems our nation faces.

We also have to deal with our health care issues that are directly influenced by an individual’s ability to pay for medical treatment. Yes we do have great health care in general but where there is not standardized primary care for all regardless of income, there are many people who are forced to use the emergency room as their primary doctors office due to not having the upfront money on a weekly or monthly basis to pay for the health insurance programs that are offered in an attempt to reduce the prices of the health care.

We may not need universal health care all the way through the health care system but we do need a universal set of standards for primary care so that the preventative medicine that has been shown to work at reducing pricing can actually bee given to all. Affordable preventative medical treatment is the first step in having a healthy workforce, which would bring down the number of days needed to deal with illnesses that causes the productivity to go down in the workforce for both the public and private sectors.

When dealing with domestic issues everyone in a position to help or hinder any progress has to ask one question of all issues, which is; how does affecting one issue affect another issue?

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