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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?

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