My plan for economic recovery

I strongly recommend several things to get us out of the economic recession we are in now. For our economy to be as productive as possible, as many people within it need to be working and spending their own money, thus increasing production.

  1. Abolish the minimum wage. It was intended to prevent the exploitation of workers, but it actually hurts the working class by limiting the ability of businesses to hire and keep employees. It is far better to have over 99% of workers employed at $3.00 an hour than it is to have only 80% of those workers employed at $7.00 an hour. With the minimum wage, there is a gap between the employed and the unemployed that wouldn’t exist otherwise. We never needed a minimum wage because in a truly free market, companies can compete for workers. If workers feel they are being paid less than they are worth, they can search for and find another company that may pay them more per hour.
  2. Establish a MAXIMUM wage. Many corporate CEOs and other executives so vastly overpay themselves that they actually are parasites on their own companies rather than leading them to prosperity. If their pay is limited, then the company can hire more workers, increasing production. More production results in a stronger economy.
  3. Outlaw outsourcing. It is the height of absurdity for a company based in the United States to have its manufacturing done in other countries to reduce labor costs and with it the final price of the goods produced. This causes workers in the United States to switch to service positions so they are no longer producers, but middlemen only. This threatens American independence. Thus, a company that outsources its manufacturing is betraying the American people! It is far better to pay higher prices for fewer goods of a higher quality than to pay lower prices for more goods that are of lower quality. It’s really that simple! When we make our own goods, we tend to care more about how they are made.
  4. Remove the property rights from corporations and ban corporate mergers and corporate bailouts. The biggest mistake we as a society ever made was to grant corporations the same property rights as individuals. This is because corporations are unlimited in size, and when such  giant corporations fail, millions of people may lose their jobs, causing a drop in cash flow that threatens other businesses. So I would recommend that when any corporation fails, the government should NEVER bail it out, but instead should be required by law to BUY OUT the company, fire all its executives, and sell all its properties at auction to individual investors who wish to start and run their own small businesses. I feel that lassez-faire capitalism can really only work when there are NO giant corporations to screw up the works. This is because corporations are more like governments than like individuals, and the same problems of abuse and inefficiency that plague governments ultimately affect corporations as well.
  5. Deregulate small businesses. It should be as easy as possible for anyone to start and operate a business. The more people we have owning their own businesses, the more people in general will value their freedom and insist on the government being accountable to them rather than vice versa.
  6. Stop the printing and coining of new money for at least a decade. When the Federal Reserve prints more money, inflation results. Stop the printing of paper money and the making of coins, and we will have deflation as less and less money remains. Deflation will increase the buying power of the dollar, making up for the less remaining currency.
  7. Tax the wealthy heavily and do not tax the poor and middle classes at all, while reducing taxes overall. This policy will prevent the hoarding of money that impedes cash flow. It does not matter at all how much money is in the economy. If there is less cash flow, the economy is weaker. If there is greater cash flow, the economy will be strengthened. The poorest economies are those with extremes of wealth and poverty, with almost no middle class. We need to increase the middle class and lessen the economic power of the wealthy. Then we will have a stable economy instead of the boom and bust periods we have had repeatedly since the late 1970s. The horror of “Reaganomics” should be thrown into the trash can of history and buried forever!
  8. Reduce the size of government. Also, put government officials under the same economic rules as those outside the government, so that no one can use government to enrich themselves. There should be NO soverign immunity for any government agencies and the people that operate them. Focus primarily on paying down the public debt and make it illegal for the government to ever borrow money. If the government cannot afford something, it should not be done.
  9. Decriminalize all drugs. We waste too much public money on law enforcement by imprisoning people who take illegal drugs instead of treating them like victims of a health problem. Why do we keep tobacco and alcohol legal and regulate them, but not treat all drugs the same way and boost the economy by allowing American citizens to produce and sell them without fear of arrest? Because we have hypocrites running the federal agencies!
  10. Outlaw credit cards. They cause too many people to run up large personal debt that limits their ability to spend money on goods and services later.
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7 thoughts on “My plan for economic recovery

    • In what sense? Did you read points five and nine? Individuals (and the businesses they run) should have freedom and property rights, but not corporations. Indeed, when corporations are allowed to operate “freely”, they pervert the capitalist system by competing with small business owners, forcing many of them out of business and making the corporations grow until they are powerful enough to influence the government to do their bidding (which is why so many of them got bailouts instead of being allowed to fail). It’s like a mouse competing with a elephant. I don’t beleive there is really such a thing as a truly free market, but a regulated market can provide some economic freedom for the benefit of as many people as possible.

      • I couldn’t agree more that corporations should not have the rights of individuals. Outlawing credit cards, however, is directly infringing upon individual freedoms, as is outlawing outsourcing, heavily taxing the wealthy and putting a cap on wages. The reach of government would necessarily have to expand to enforce such draconian measures to any effective degree.

        Further, the hidden costs of these policies could easily outweigh any benefits. Wage caps have been tried before, and they led to the marriage of jobs and healthcare (businesses just circumvented the laws by providing “non-cash” benefits). Anyone who has ever paid COBRA rates for health insurance can tell you about the negative costs of that tradition.

        • Poppies, you might have a point, except that in the case of outsourcing it was done so gradually over several decades that we didn’t even notice how bad the problem was until almost everything we buy now is “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”, “Made in China”!!! Where is the freedom now to buy most of our products that are “made in USA”! We’ve LOST that! Corporations are more free than we as consumers are!

          I didn’t say my plan was either perfect or intended to be permenant. I just know the current economic system is screwed up and must reformed somehow. If you have a plan of your own, Poppies, I’m all eyes for it!

          • You’re more than free to purchase most of your products from “American” companies, you’re just in the minority in your preferences. The marketplace has freely decided that in aggregate, low prices are preferable to American-sourced production. I’ve heard of studies showing that lower prices due to Asian manufacturing are a net wealth creator, more than making up for any domestic jobs lost. Sensationalistic media outlets couldn’t provoke many people with such a story, however, so we’ll continue to hear only about jobs being drained.

            Regarding “my” plan, it’s quite simple: relinquish our government’s monopoly on the “services” it provides. It’s called Voluntaryism, and it’s as appropriate a solution to our economic and political problems as is possible.

  1. You’re more than free to purchase most of your products from “American” companies, you’re just in the minority in your preferences. The marketplace has freely decided that in aggregate, low prices are preferable to American-sourced production.

    Are you seriously suggesting that most American consumers have knowingly sold out their own country for the sake of cheap goods?! I do not beleive that. Most Americans do not even bother to look at where their items are made before they buy them. They are seduced by the lower prices. They need to be educated about the true consequences of their being manipulated by the “free” market.

    I’ve heard of studies showing that lower prices due to Asian manufacturing are a net wealth creator, more than making up for any domestic jobs lost.

    Sure, if you define wealth creation in terms of higher profits for the companies involved. But such short term profit seeking undermines the long-term economic vitality of America. Imagine what would happen if China suddenly decided to slap an embargo on us! We’d be SUNK!

    Sensationalistic media outlets couldn’t provoke many people with such a story, however, so we’ll continue to hear only about jobs being drained.

    Because that is the truth!

    Regarding “my” plan, it’s quite simple: relinquish our government’s monopoly on the “services” it provides. It’s called Voluntaryism, and it’s as appropriate a solution to our economic and political problems as is possible.

    I can agree with that!

  2. Pingback: The absurd scam of “Reaganomics” « Dale Husband’s Intellectual Rants

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