- start writing better speeches
- start becoming more like Jesus
- spend like there's no tomorrow
Well that was my take on it anyway.
To be honest, I'm not entirely sure how lower taxes will fix America anyway. My take is that the Fed has messed things up and simply has no real leverage. The usual levers to regulate an economy require monetary or fiscal approaches to dealing with problems.
With deflation and low interest rates, it's not possible to effectively apply monetary policy. Of course the fix is to increase interest rates and let inflation rise - but that would impact unemployment and there's probably no tolerance for that right now.
So of course the only tool left was to massively increase spending - and that's happened in record amounts except that it's not exactly been productive. Simply replacing lost dollars with expenditure dollars is a zero sum game and isn't going to fix things either.
So what to do?
My 5 point plan:
- increase interest rates immediately by up to 5% with a plan to increase by another 3% within a year
- differentiate between 'rich' people and small business from a tax perspective. Give the small businesses tax incentives to hire, and tax the rich people.
- withdraw all war and military efforts on all foreign soil. It costs a fortune without really strengthening military power
- provide Americans with a great big hairy audacious goal that will enable them to dream big and get their sorry asses out of the quagmire and into the fire
- allow Wall Street to be Wall Street. It has been the greatest creator of wealth this world has ever seen and yes it has risks but without it, you're trying to run a V8 Chevy using bubble gum