Fixing the Economy
I'm not an economist, but I've noticed a few things that really need to be done in order for the country to get back on its feet. I can outline three big steps that would really get the economy moving again... but these things are likely to never see the light of day in the current world of politics.
STEP 1 - CLOSE THE U.S. / INTERNATIONAL TAX LAW LOOPHOLE
The U.S. follows accounting practices according to our own standards, otherwise known as GAAP. The rest of the world (for the most part) follows a different organization of accounting practices known as iGAAP. GAAP is rule-based, and functions as law with respect to the rules-as-written. iGAAP is principle based and more streamlined, and generally functions as law with respect to the rules-as-commonly-interpreted. GAAP is far more exploitable than iGAAP. Larger international companies, particularly in the energy industries, openly use the differences between GAAP and iGAAP to avoid billions in potential taxes. That's $billions that could be funding government programs or paying down debt.
This particular idea is currently in the works, but won't be actionable for at least 10 more years, probably closer to 30.
STEP 2 - INCREASE THE QUALITY OF U.S. GOODS & SERVICES
That big national debt number that is constantly rising does not denote government spending necessarily. It's our trade deficit. It's the difference between how much we import and how much we export. A debt signifies that we are importing more than we are exporting. While we are a nation of consumers, our return to the world market is not sustainable.
I believe the difference can be made up in more people having higher incomes. In order to do that, we need to produce goods that can compete with other countries such as Japan and China on the world market. China has far too many people whom are willing to work for far less than their U.S. counterparts, so a strategy of mass production is out the window. We can, however, focus on producing higher quality merchandise/services at a higher convenience level than much of the rest of the world. The thing of it is that the Americans doing that now are few and far between.
The advantage those few have over the rest of us is quality education, particularly in the field of entrepreneurship. People don't commonly know how to manage finances intelligently, promote themselves throughout the world, or fill vacancies in products or services to a particular market. We fix this not only with appropriate programs in our primary schools, but also by making our higher education institutions higher quality and more affordable to the lower and middle classes. The higher we can push the income limit for poverty as a function of a small percentage of the population, the better off we are as a nation.
Subsidies like we have only function to bring individuals out of poor situations... individuals whom have already independently learned outside the system. The lessons they find outside the system need to be integrated into the schools such that everyone has that understanding and knowledge. That way, teachers, instructors, and professors can use that knowledge as a base, rather than attempting to half-ass teach it in every class as is appropriate to that class (and no more). That's what increases the quality in higher institutions. Higher quality education equates to a higher understanding of practical concepts that can be used to produce the higher quality goods and services needed to compete on the global market and increase our exports (or at least decrease our imports).
STEP 3 - STREAMLINE THE PROCEDURES OF CONGRESS
In order for any of the above to get done (or for that matter, any change to occur), it must be first approved by congress. Since many effective solutions require a blending of liberal and conservative concepts, the two parties need to work together, rather than against each other. Eliminating the committees of committees and many of the blocking practices found in current politics would go far in, to put it bluntly, getting shit done.
Sadly, not only are we now locked in stagnation, but neither ideology is willing to budge on their position for fear they may give the opposing ideology so much of an advantage as to steamroll the other. Politically, nothing of positive U.S. significance has happened within the last 30 years, and I only say that because I haven't looked beyond 1980.
STEP 1 - CLOSE THE U.S. / INTERNATIONAL TAX LAW LOOPHOLE
The U.S. follows accounting practices according to our own standards, otherwise known as GAAP. The rest of the world (for the most part) follows a different organization of accounting practices known as iGAAP. GAAP is rule-based, and functions as law with respect to the rules-as-written. iGAAP is principle based and more streamlined, and generally functions as law with respect to the rules-as-commonly-interpreted. GAAP is far more exploitable than iGAAP. Larger international companies, particularly in the energy industries, openly use the differences between GAAP and iGAAP to avoid billions in potential taxes. That's $billions that could be funding government programs or paying down debt.
This particular idea is currently in the works, but won't be actionable for at least 10 more years, probably closer to 30.
STEP 2 - INCREASE THE QUALITY OF U.S. GOODS & SERVICES
That big national debt number that is constantly rising does not denote government spending necessarily. It's our trade deficit. It's the difference between how much we import and how much we export. A debt signifies that we are importing more than we are exporting. While we are a nation of consumers, our return to the world market is not sustainable.
I believe the difference can be made up in more people having higher incomes. In order to do that, we need to produce goods that can compete with other countries such as Japan and China on the world market. China has far too many people whom are willing to work for far less than their U.S. counterparts, so a strategy of mass production is out the window. We can, however, focus on producing higher quality merchandise/services at a higher convenience level than much of the rest of the world. The thing of it is that the Americans doing that now are few and far between.
The advantage those few have over the rest of us is quality education, particularly in the field of entrepreneurship. People don't commonly know how to manage finances intelligently, promote themselves throughout the world, or fill vacancies in products or services to a particular market. We fix this not only with appropriate programs in our primary schools, but also by making our higher education institutions higher quality and more affordable to the lower and middle classes. The higher we can push the income limit for poverty as a function of a small percentage of the population, the better off we are as a nation.
Subsidies like we have only function to bring individuals out of poor situations... individuals whom have already independently learned outside the system. The lessons they find outside the system need to be integrated into the schools such that everyone has that understanding and knowledge. That way, teachers, instructors, and professors can use that knowledge as a base, rather than attempting to half-ass teach it in every class as is appropriate to that class (and no more). That's what increases the quality in higher institutions. Higher quality education equates to a higher understanding of practical concepts that can be used to produce the higher quality goods and services needed to compete on the global market and increase our exports (or at least decrease our imports).
STEP 3 - STREAMLINE THE PROCEDURES OF CONGRESS
In order for any of the above to get done (or for that matter, any change to occur), it must be first approved by congress. Since many effective solutions require a blending of liberal and conservative concepts, the two parties need to work together, rather than against each other. Eliminating the committees of committees and many of the blocking practices found in current politics would go far in, to put it bluntly, getting shit done.
Sadly, not only are we now locked in stagnation, but neither ideology is willing to budge on their position for fear they may give the opposing ideology so much of an advantage as to steamroll the other. Politically, nothing of positive U.S. significance has happened within the last 30 years, and I only say that because I haven't looked beyond 1980.