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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?

1 comment:

Examples and Stuff said...

Since the U.S. economy's measure of value is screwed up due to the way the U.S. currency is borrowed into circulation and the debt is never cleared, instead just rolled over and since the interest on the debt is monetized then there really is no way to fix any part of the U.S. economic system until the monetary system is repaired or replaced.

The cure lies in changing fiscal and tax policy at it's very root, that might even require an amendment to the u.s. constitution.

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