Despite being both ineffective and unpopular, the Democrats and Obama continue to use Keynesian economic policy to stimulate the economy. A historical review proves it did not work for FDR either. The Great Depression lasted through1946, even with the mistaken myth that WWII brought us out.The Uncertain Trend in U.S. GDP by Christian J. Murray and Charles R. Nelson of the University of Washington makes that point. Printing money by fiat and increasing the debt level actually stunts real increased GDP. Furthermore, increasing taxes actually sucks money out of the private sector and places it the hands of bureaucrats who produce nothing, and who do not increase wealth or output (GDP). The only way out of this prolonged recession is restoration of the public confidence in its government and in the business environment. The problem has been stated; now what is the solution?
Part One-The Government
Restoring confidence in our government should take the following steps: First, be aware that elected officials are mostly professional politicians whose real job is to get re-elected, not to serve the best interests of the nation. Obama himself has never really had a private sector job. The American process is every two, four, and six years to vote the scoundrels out, hopefully replacing them with public servants who have some experience at a real job and setting sound objectives. Money from pressure groups can be neutralized by you putting your money where your mouth is. These newly elected officials are likely to expose and eliminate perks, i.e., a 737 aircraft for the speaker, 5% pay raises in tough times, a separate health program and an overly generous retirement. The focus should not be that we tax too little but spend too much. Our current officials use our own to money to bribe us to offer social programs whose cost is unsustainable (Medicare and Social Security are insolvent) and the public must realize this. All civil service job rankings should be correlated to average American workers compensation down from the two times it is now. Legalize marijuana, regulate it and tax it like tobacco and alcohol which will reduce the cost of the war on drugs and increase tax revenues. Close the border, but permit a path to citizenship to make illegal immigrants pay taxes and allow wages to increase, making job competition fair, thus boosting American employment and reducing the costly strain on social services. More bloating of the federal budget because of higher levels of social welfare and the coronation of a privileged class will not stimulate our economy, common sense will.