alwaysalady

3 Things America Needs to Do to Get the Economy Back on Track

Americans are living a precarious existence of excessive indebtedness, inadequate or non-existant savings, increasing inflation, and the threat of being wiped out by one-time major health care cost. There will be no support for any reform which threatens our delicate financial balance. In this sense, we are able to be blackmailed by our government into accepting proposals which - while unwise - act as stopgaps and defer reform to the distant future.

That is why if we are ever going to change the decadent, acquisition fixated, spiritually shallow, and irresponsible culture we have created, we need to let the current financial crisis play out. Here are my reasons:

. Those who have been most responsible will lose the most $. There is a fairness in this which resonates with many people, even those who would also be hurt by the fallout.
. The weakest banks and businesses will fail.
. While jobs will be lost, the purchasing power of unemployment insurance will go up because prices will go down. Lower prices will especially help people most hurt by inflation --those below the poverty level who are getting food stamps and live in subsidized housing, and retired people on Social Security
. Interest rates will go up, discouraging discretionary borrowing and encouraging savings which increases liquidity.
. There is plenty of capital in our country seeking returns greater than government bonds that will tend to seek out sound investments in favor of risky, arcane financial instruments.