Ryne Welch
America is a very unique country. While other counties and nations throughout history may have a more legitimate claim as a true world leader, America has arisen in power in the modern era where global power can truly be realized. The influence of culture, as well as the effect America has in relation to the global economy are tell tale signs of this. That being said, recently America has become a place where the economy is has become a roller coaster of ups and downs. That, coupled with the recent credit crisis, has brought about a great fear of another depression like condition within the United States. While this fear is undeniably real in the realms of possibility, it is not entirely impossible for our country to make a comeback and reestablish the greatness that our country has come to be known for.
The first thing one needs to do is to gain an understanding of what the economic crisis is all about. The main problem, and the most basic way to one to understand it, is that our government is essentially spending more money than it is making. Think of this like a regular individual, who is constantly in the hole when it comes to bills and such. In order to meet the demands for a situation such as this, the government has resorted to borrowing money from the likes of countries such as China. This has created a whole mess of problems because our government’s national debt has skyrocketed to unprecedented levels. This in turn affects several things such as for example individual’s ability to take out loans. With all these problems seemingly piling up and spiraling out of control, what then can be the solutions to bring us back?
According to David Rosenberg, economical analysts, there are six major ways to help the economy. The first method is to give large tax cuts to small business. One of the things that America relied on during the early days of its economy was small business. In the modern age, large cooperation has taken over as the primary group that sells to Americans. The tax cuts will help foster small business and make it a relevant factor in the business world. Next, Rosenberg suggests that working on green methods for energy in America can help wean America off of foreign oil, a major factor in the increasing debt of the National Government. Another way is to provide government aid programs that are aimed to help people find long-term jobs. This would replace current programs that do little more than to provide free handouts to people who are in need of money. The fourth way Rosenberg thinks will help boost our economy is to cut jobless benefits that are often seen today. This goes back to the welfare programs that basically provide free handouts to people. The fifth way, and possibly the most controversial method suggested by Rosenberg would be to eliminate the minimum wage. His reasoning is that the free market intended for our country is being hampered by the minimum wage. In his opinion, the elimination of this would help the economy become competitive again, similar to other countries. The final way, and perhaps the most alluring to is to find other ways to increase the income of the federal government. This combats the basic problem our economy faces. (Rosenberg)
The federal government has taken arms against the looming Economical crisis by outlying plans to help eliminate the problems. However, the democratic method of spending more money to combat the ailing economy is counterproductive. I think a push to restructure how taxes works, and a combination of several of the methods suggested by Rosenberg would be beneficial to our government. Obama has begun to push for taxation of the rich, which is a step in the right direction. If a true effort is made using these methods the federal government still has time to turn around the looming crisis that our great nation faces.
Work Cited
http://www.moneynews.com/StreetTalk/rosenberg-ways-fix-economy/2010/06/14/id/361913s