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The United States Economic Woes - A Simple Fix?

Do you know why the United States’ credit rating dropped after finally reaching an “agreement” on August 2, 2011? Never mind the fact that the agreement was not even finalized when it was agreed upon, therefore just prolonging the debates over whether to add this fee or that to the bill. Never mind the fact that it took months upon months to get done and was a competition rather than a joint-effort to fix (which Obama has so snuggly clung onto in order to make you forget the truths about the situation). The reason the United States’ credit rating was downgraded was solely because the bill is a restructuring of something that is already in crisis… and not an overhaul or fix in any way. All that was done was they raised the amount of money in which they’re allowed to be in debt, and forced their way into more spending to print more money to cover those trillions in debt.

Obama (I will not refer to him as President because even if that’s the position he holds, the job he does is not that of President of the United States of America) also denounced the credit company Standard & Poor’s decision to downgrade the US, claiming, “America is still an AAA credit country and the rating means nothing.” Lord Almighty I wish I had the right and the nerve to walk into a credit company, demand a card, and use that card on anything I want and say it is fine, because the credit rating “means nothing”.

Not only does it not “mean nothing”, it means everything. It’s a direct reflection of how terribly the United States handled not only this situation, but also the entire economy and the situations of every citizen for the past [specifically] 3 years. Unemployment rates are still absurdly horrific, and the tax system is still in dire straits. So how do we fix the economy? Believe it or not… problems this huge are fixed in the most simple of manners.

Create jobs! Or better yet, force employers to create jobs. It’s hilarious to me that business owners refuse to hire people solely because nobody can afford to buy their product. Well, the reason people can’t afford to buy products is because people aren’t making money… they’re unemployed. Look no further than new-regime China, which has created jobs, and pays employees fairly. Not only do owners spend more money on paying their employees top dollar, but owners receive greater revenue because other companies hire and pay correctly, giving people enough money to throw back into the economy on the products companies have to sell in order to make money. Sure, in the short-term, immediately after hiring people, owners will see a large percentage of their companies value and wealth decline (not as though it isn’t already with nobody purchasing the product they’re still spending to produce), but in the long-term, when people are spending because they can, businesses will flourish, and owners will acquire more fortune. So step 1, a simple step, is to force companies to hire employees and pay them more along the lines of their global counterparts.

Step 2? Yet another simple step… but it can only be achieved through having first focused on Step 1. Instigate and encourage spending. When people finally have money to spend, they’ll first be worried thinking they need to save up in case something like this happens again (and saving personally WILL help the economy by ensuring there are funds still in personal reserve). The need to push people to spend on products will ultimately keep currency in rotation in the economy. Currency… current… to flow… get it now? China and India have dominated financial markets and economic crisis periods because they hire, they create jobs, they pay people top dollar, and people are constantly feeding money back into business so owners can afford to write checks, purchase material, and carry on in that same circle. America used to do this, but somewhere along the way, all focus has been lost.

Step 3, which I feel is one of the most important steps, is to create a more precise and effective taxing situation. We need more balance in the percentage of what is spent on taxes by the rich and the not rich. Being richer shouldn’t entitle you to more tax breaks. The average American (everyone outside of the 10% that makes up the rich/wealthy) spends a greater percentage on taxes than the top 10% do in proportion. All that does is take money away from the average American that they could ultimately be spending on products to help the entire economy grow.

Step 4, which could exist with Step 1 but I’ve decided to separate it due to the nature of how large it is and how important the US citizens be able to fund it into existence, is to begin distributing and exporting products and goods. For too long now, Japan, China, India, the UK have taken Americans into their own market and used them to develop products which have sold en masse. It’s time for America to enter a new Industrial Revolution. While systems fail and we experience something on the scale of the Gulf Oil Spill (BP), it’s still imperative that the United States embrace offshore drilling in an effort to help save the oil industry… and produce a good which the rest of the world is in critical need. Becoming a player in the oil market (a market the United States has long kept themselves from competing) would not only help the United States’ economy and the world’s need for oil, but it would save the environment of nations which do produce oil while you can still not destroy our environment by first hiring people to learn why other nations have been unsuccessful in saving theirs at the price of drilling for oil. Offshore drilling can be dangerous, but jobs can be created to find people who can ensure safer protocol and procedures that BP did not focus on with their offshore pumps. And while we’re on the topic of foreign policy – stop forgiving debts which could ultimately help you chip away at the trillions we owe in debt!

There you go: 4 simple steps on how to fix the economy, to create jobs and market. Oh, and the bonus? Education suddenly flourishes as the need to create future employees suddenly and rapidly grows. Amazing how something so simple could fix problems so large, huh?

Sidenote - This is a foreshadow to a project I will be working on with a friend in the near future. We will compound and expound these topics and more, but I've been bothered by these topics long enough now that I had to present them to you. I'm also hoping you all leave comments in order to help me determine if there are flaws in my logic on these issues. Again, this is a simple breakdown, so of course the fine print on how to achieve these things isn't all laid out, but these things ARE actually simple enough if you just consider for a moment that they don't HAVE to be complex issues to resolve.


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