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The Way out of a Recession is to Fix Things, not Hide

I.  Our economic problems are due primarily to the (semi)criminal activity of the investment community:  banks, the stock market, housing fraud, etc.  


II.  Joblessness is high:  9% at lowest; probably much higher.  People need jobs.  People really need jobs!


III.  Our government poured billions of dollars into avoiding a complete financial collapse;  into banks, automotive firms, State budgets, etc.  On top of spending trillions for two wars we never accounted for in our budgets, we have a massive budget deficit.


IV.  Every expert says there is a lot of money waiting to be invested in the U.S. economy, but it is waiting for stronger signs of recovery.  That is to say, "private" cash is not working for us.  


V.  Conservatives say that we have to balance our national budget, or Adam Smith will come and get us.  As John Boehner says, "if that results in massive layoffs, so be it!".  Kill the labor unions, too, while you are at it!  Genius solution!  Even more people out of work!  


VI.  Part of the problem is that we are shifting from an old industrial economy to a highly competitive world economy.  Many of the people out of work do not have the skills we really need.  


VII.  What should we do?  Government should do two things:  1) invest in the educational system.  That is what we really need:  better trained workers, and 2) invest in infrastructure.  Renewable energy sources, roads, railroads, bridges, lightning fast communications capabilities, etc.  That will make competitiveness and genuine innovation possible, and create millions of jobs.  


VIII.  That government investment will also create the opportunity for luring private investment (better trained workers, available infrastructure, and competitive tools).   That will get the economy rolling, increasing government income, and making genuine budget reductions possible.  Laying off people, scaring off investment, and scaring the public about ever recovering is not the way out of a recession.  


Who is going to tell John Boehner?


Who is going to tell people generally that we need government investment, not government frugality?  They elect people like the Boehner.  


Almost every economist says this is the time to invest.  Almost every politician listens to the Tea Party, instead. 



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