How to Improve the US Economy - A Political Perspective

The United States has been in a recession sincesaid that Obama's budget would produce $9.3 trillion in
December, 2007, as defined by the National Bureaudeficits over the next decade.
of Economic Research, a private, nonprofit researchThis is a large chunk of change that needs to be
organization. But the American people, and theprovided by the American taxpayer! But the question
Obama administration along with the democratis, will all of this spending help the long term growth
majority congress, seem to be at odds on how toof the US economy? Growth being during the period
fix the American economy.of not just the next few years, but rather 10 to 15
A robust economy means companies expand whichyears. We believe it will not and here is why.
results in job creation. Currently, the American people2) These programs burden the tax payer. History has
are not spending because many are not working, andshown that long sustained economic growth can not
those who are working are spending less, most likelytake place when the tax payer is over burdened by
due to the possibility of losing their job. Currenta federal deficit. Also, when the government spends
unemployment rate stands at 9.6% as of August,money they do not have, they print more money,
2009. A decrease in spending by the American peoplewhich results in a devaluation of the US dollar. This
results in a decrease in company profits, companyresults in inflation.
non expansion, and more layoffs.3) Small businesses employ just over half of U.S.
Reporting on a survey by Watson Wyatt, aworkers. How do you define a small business. The
consulting firm, the reported in November of 2008Office of Advocacy defines a small business for
that one-fourth of U.S. employers plan to have staffresearch purposes as an independent business having
reductions during the following calendar year. We arefewer than 500 employees. In examining the $780
now seeing this come to fruition for 2009.billion stimulus package, you can see that there is no
So how can the US economy improve? Improvementreal help for small business. Remember, job creation is
being defined as two consecutive quarters where weneeded for economic recovery.
do not have negative growth in the GDP (gross4) The socializing of America will not result in long
domestic product). The following is what we call theterm economic growth. The massive spending that
Steps to Economic Improvement. These are stepsthe Obama administration has proposed will result in
for consideration which hopefully result in a healthyan even greater tax burden to the American people.
bipartisan discussion between our electedMost Americans believe in the frame work and
congressman and their constituency. These stepsmeaning of The Constitution of the United States.
may result in non-recessionary growth of ourThe first words of the Constitution "We the People"
economy.make it clear that our government was established
You may or may not agree with these steps, but atto serve the people. The essence of a democracy
a bare minimum, these are points to consider, andwas eloquently stated by President Lincoln in his
ideally result in a healthy discussion with our electedGettysburg Address "that government of the people,
congressmen, which at last check, is one of theby the people, for the people, shall not perish from
unchanged notions of a free democratic society.the earth." This simply means that our elected
Steps to Economic Improvement:president and congress have a responsibility to listen
1) The first step is to realize that it is business andto the American people.
not government that creates jobs and wealth withinAnd it can be said that most Americans do not want
the American society.  This is where we believe isa socialistic society for the United States.
the heart of the problem. It is evident that theGovernment needs to stop spending the American
Obama administration believes it is government thattax dollar, simply because an escalating government
will lead Americans to economic prosperity. This isdeficit will not result in an overall improvement in our
why the federal government has put forth a $780economy.
billion stimulus package. So where is this money really5) Programs such as Cash for Clunkers, auto industry
going. Let’s take a look at the breakdown.bailouts, and the like, only in the end increase the tax
(source Republican Senate office, AC360)burden on the American people. These massively
$780 Billion Stimulus Package:expensive programs do very little to improve the
MORE THAN $43 BILLION IN TRANSPORTATIONviability and strength of most small business. Based
INFRASTRUCTURE INVESTMENTSon 2008 figures, there are 155 million workers in the
$27 BILLION FOR HIGHWAY, ROAD AND BRIDGEUnited States. The car industry accounts for about 13
INVESTMENTSmillion of these workers. Therefore, most Americans
$8.4 BILLION FOR PUBLIC TRANSIT INVESTMENTwill not benefit from the bailout of the auto industry.
$2 BILLION FOR HIGH SPEED RAILThere is only a marginal at best improvement in the
$1.3 BILLION FOR FAA AIRPORT IMPROVEMENTeconomy from such programs.
FACILITIES AND EQUIPMENT6) We do applaud the Obama administration for the
$850 MILLION FOR AMTRAKinjection of capital into the financial institutions,
$250 MILLION FOR GRANTS TO STATES FORbecause for small business to flourish, there needs to
INVESTMENT IN HIGH SPEED AND INNER CITYbe capital available, and commercial banks and other
PASSENGER RAILdepository institutions are the largest lenders of
$100 MILLION TO MARITIME ADMINISTRATIONcapital to small business.
FOR ASSISTANCE TO SMALL SHIPYARDS7) The economy will do much better when
$76.8 BILLION IN EDUCATION INVESTMENTScompanies are left to compete in the market place
$39 BILLION FOR STATE FISCAL RELIEFwith minimal government involvement. A case in
TARGETED DIRECTLY FOR EDUCATIONpoint, the Reagan administration had a policy of less
$13.9 BILLION FOR PELL GRANTSgovernment during the 1980s. This resulted in long
$13.5 BILLION FOR SPECIAL EDUCATION FUNDINGterm economic growth. This is the exact opposite of
$10.4 BILLION FOR TITLE Iwhat the Obama administration is trying to do.
$6.4 BILLION FOR WATER AND SEWERThe Obama administration was given a bad economy
INFRASTRUCTUREwhen Barack Obama took office. But the Obama
$3 BILLION FOR JOB TRAININGadministration has taken a bad situation and made it
$3.25 BILLION FOR WORKFORCE INVESTMENTmuch worse. Many economists believe that our
PROGRAMSeconomy would return anyway, with minimal
$160 MILLION FOR JOB CORPSgovernment involvement. In terms of the economy,
$87 BILLION IN TEMPORARY AND TARGETEDthe government many times creates or prolongs
MEDICAID RELIEF TO STATESproblems and really does not solve them. A case in
$5 BILLION FOR SUPPLEMENTAL GRANTS TOpoint, the deregulation of the banking industry which
PUBLIC HOUSING AUTHORITIES FOR CAPITALresulted in sub-prime lending. This created an eventual
NEEDSfinancial collapse, which resulted in the down turn in
$4.7 BILLION FOR STATE AND LOCAL ENERGYour economy and our current economic meltdown.
EFFICIENCY BLOCK GRANTSTo conclude, the concept of minimal government is
$4.4 BILLION FOR SMART GRIDan important component for a strong American
$2.9 BILLION FOR WEATHERIZATION PROGRAMSeconomy. Letting companies naturally compete within
$2 BILLION FOR ADVANCED BATTERYa free democratic society, with minimal government
MANUFACTURINGinvolvement, produces a robust economy, which
$7 BILLION FOR LOAN GUARANTEES FORbenefits all Americans. The writers of the Constitution
STANDARD RENEWABLESof the United Sates, our founding fathers, believed
$800 MILLION FOR CONSTRUCTION OF PORTS OFthat the role of government in the lives of people
ENTRYshould be minimal. Should we not adhere to the
$500 MILLION FOR FIREFIGHTERS ASSISTANCEprinciples of our Constitution?
GRANTSBy letting your voice be heard, it is the American
$1.2 BILLION FOR NATIONAL SCIENCEpeople who in the end control the destiny of the
FOUNDATIONUnited States. And in the end, it is the American
As part of the 2010 budget proposal, the Obamapeople who will control the destiny of the American
administration has also proposed additional measureseconomy. Go to your congressman’s website
to attempt to stabilize the economy, including aand contact them, discuss these points, express your
$2–3 trillion measure aimed at stabilizing theopinion, and let them know how you feel. It is your
financial system and freeing up credit. In a nutshell,right and duty as an American citizen.
auditors from the Congressional Budget Office have