The recession should now rightfully be called the “Obama Recession”.
The president’s policies of Stimulus, Tarp, Opposing Debt reduction and Policy changes (combined into the acronym STOP), have all failed to stop the recession. In fact, according to a recent Pew poll, the number of Americans who believe Obama has made the recession worse has more than doubled in the last year to almost 30%.
With unemployment well over 9% and 2.5 million jobs lost in the last two years there can be no denying the decisions made by Obama have failed to turn the economy around.
No matter how rosy the picture Vice President Biden paints, he cannot cover up the facts.
If conservative economists are to be believed, the Obama formula of more government spending, increasing the debt and raising taxes continues, the number of Americans suffering from the recession will increase.
The first thing that we need to do to is to tell the truth to the people. If the Tax cuts from 2003 are left to expire, everyone’s taxes will go up.
The lowest tax rate of 10% will increase to 15%, so low income workers (earning less than $16,750) will have their taxes go up by 50%!
Similarly, the “rich” taxpayers earning over $250,000 will get an increase. But the truth of the matter is most of the “rich” people affected will be owners of small businesses where the small business is taxed as an individual (subchapter S corporations). So any money left in the business to pay for future bills is counted as income. Likewise, the principal on any loan payments cannot be deducted so if a business has loan payments, which most of them do, the owner’s taxable income could be shown as $250,000 when the actual income could easily be $150,000 or less, before taxes. After taxes the owners are not nearly as rich as we were told.
Is it any wonder that small businesses are laying off people and not hiring?
The way to end the recession is to continue the tax cuts, cut government spending and add additional selective tax cuts to stoke the economy.
The way to get this country moving again is to create more jobs. Not just any job, certainly not government jobs but well paying jobs in the private sector.
The U.S. has suffered in the world economy by losing manufacturing jobs. We have lost the great edge we once had in being able to out manufacture the competition
The Association of Mature American Citizens proposes the creation of Free Enterprise Zones where new manufacturing plants would be constructed to make products that are no longer made in the U.S.A.
Skeptics will say, “How can we make something cheaper than the countries that stole our business because of low labor cost resulting in unbelievable low prices?”
The answer is simple, we out produce them.
Take light bulbs for example; if a plant overseas can produce 100,000 bulbs in a month we build a plant that can produce 2 million bulbs in a month. Mass production, more properly called Super Mass production, will result in lower prices and make our products competitive again.
The new plants will be like something that no one has ever seen before.
They will be huge mega plants with heavy automation and robotics. Fewer workers will be needed but because of their massive size we’ll still put many, many workers into good paying jobs. Additional jobs will be created during the construction and maintenance of the plants. Even more people would be needed in the sales and marketing side of the businesses. The ripple effect will be felt in areas where the plants are located to provide housing and services to the new workers.
The billions of dollars needed to fund the program would come from Enterprise Bonds sold to investors and the general public that would provide tax free income on the interest earned. The interest rates would be very competitive. (For example; in the present economy they would pay somewhere around 3-4% and they would be backed by the full faith and credit of the U.S.)
Let’s bring manufacturing jobs back to the U.S.A. and let’s get this country moving again!
Note: The Association of Mature American Citizens (AMAC) is a growing organization of over 100,000 members representing the views of citizens 50 and older.