How We Can Fix This

Money Monday

How We Can Fix This

Finally, on Money Monday, I give you my thoughts on how we can fix the problems in our country. I believe it is possible to reverse this cycle of socialization in time to save our country. Unfortunately, history tells us that it is not likely. Government gets bigger, not smaller.

No matter what we do, there is going to be a lot of pain. It will not be easy. The only difference is that we can choose to face our problems with courage as defenders of freedom, or we can bury our heads in the sand like socialistic cowards hoping it turns out for the best. That is how societies are enslaved. Below is how we can face our problems and make the best of the situation that our predecessors have left us.

Euro Crash

The only thing that will buy us enough time is the Euro crash. Yes this would destroy the world economy, but world investors will flee to the "safe" investment of U.S. debt. When running from a bear, you don't have to run faster than the bear, just faster than your friend. What I mean to say, is compared to the Euro, the U.S. still looks pretty good. I believe this comparison will maintain investor confidence in the U.S. long enough for us to implement the things below.

Reduce Government Spending

$1 of every $4 spent in the economy is spent by the U.S. Government. When a quarter of the economy represents government spending and specifically the increase in government spending, that means trouble. Just think about all the so call "growth" the economy has experienced over the passed few years. Now think about how much government spending has increased. How much of our 1% is fake? Without government is the economy even growing?

The biggest problem with this is that it doesn't work and is not sustainable. 1/3 of every dollar spent by the U.S. government is borrowed. U.S debt is at an all time high and no longer sustainable. The only thing keeping this ponzi scheme alive is the Fed using printed money to buy the debt that no one else will.

Also government spending cannot stimulate the private sector, because before the government can inject money into the private sector it has to take the money out of the private sector via taxes. The only thing the government can stimulate is inflation and more government.

Reduce Size of Government Regulation

Could Bill Gates start Microsoft in his garage today? Many people say no. Government regulation is smothering growth. Thousands of regulations have been unconstitutionally enacted by way of FDA, IRS, EPA, Department of Labor and Department of Energy regulations and executive orders. The cost of doing business has skyrocketing and is stifling growth and hiring.

The government needs to ensure fair competition and get out of the way. This provides equal opportunity, not equal results. It prevents companies from taking unnecessary risks by eliminating guarantees like what happened with the bank bailouts.

Flat Tax

The Tax system is extremely cumbersome and extremely debilitating. By create a flat tax, and eliminating most deductions (not charitable giving) all will pay their fair share. It will also leave more money in the private sector, where it can do the most good.

Nearly half of all U.S. households pay no federal income taxes. How can a population be expected to spend contributions responsibly when nearly half of them don't contribute? If everyone has to pay a part, the sacrifice will hit home and voters will spend tax income more responsibly.

Reduce the Welfare State

"The worse thing that you can do for someone else is something that they can do for themselves." I don't know who said it, but it's true. Ben Franklin counseled us to make people uncomfortable in their poverty. Then they will work to escape it.

Our welfare system has become extremely overgrown. It allows people to become comfortable in their poverty. They never break themselves free of the poverty trap, and why would they? I have a tenant that receives more than $1000 in social security income, city paid rent, utility assistance, food stamps, and he still stands on the corner with a cardboard sign.

There are three main reasons for poverty: 1. misfortune, 2. laziness, and 3. ignorance. Welfare teaches people that they don't need an emergency fund to keep them afloat in the event of misfortune. Welfare allows people to be comfortable in their poverty and they become lazy. Ignorance, specifically financial ignorance, leads to horrible financial mistakes that result in further poverty. We need a spring board, not a safety net.

Eliminate Political Corruption

If a business owner gives a congressman $10,000 cash, they both go to jail. However, if a business owner gives a congressman stock options for an IPO valued at $100,000, it is perfectly legal. Obviously there is way too much corruption in politics. Corruption at this level impedes Congress' ability to serve the people. Instead they serve themselves and the hand that feeds. To solve this corruption we must:

1. Slash Salaries of elected officials. They should not make more than the average American or a serviceman in the armed forces. Some argue to raise salaries in order to attract the best and brightest and ease the desire to create alternative means of income. I disagree. The government shouldn't need the "best and brightest." They belong in the public sector where they can create jobs and raise everyones standard of living. The government need to protect fair competition and get out of the way.
2. Eliminate corporate money. Corporations should be severely limited as to the amount of money they can donate. Every organization should be severely limited in this way.
3. Eliminate legal loopholes that allow elected officials to participate in insider trading. 

Drill Baby Drill

Canada experienced just as much of a crash as everyone else in the world. However, by taking advantage of new found oil, they have recovered all jobs lost and reivigorated their econmy. North Dakota has done the same, taking advantage of new found oil. Currently North Dakota is the fastest growing state in the nation. They are also the state with the lowest unemployment.

The current administration has done the opposite of canada. They have virtually halted all drilling permits in the Gulf of Mexico. They have stopped renewing drilling permits on government land. Through the FDA and their green agenda, they have all but made oil and coal energy illegal. To top it all off, they have cancelled plans to take advantage of Canada's prosperity by canceling plans to build a pipeline that would pipe Canada's oil to the U.S. Now, in an effort to "save the environment" the oil will be shipped to China, and we will have to continue to ship our oil from the middle east.

This step is absolutely essential. Without a large economic stimulant, the economy cannot survive the required cuts.

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