Will not be proposed by our President anytime soon, he’s too much of a coward, but here’s one he should embrace:
1) $300 billion/year for 3 years to hire 10 million Americans immediately to work on rebuilding the nation’s infrastructure, coupled with another $300 billion/year for 3 years to finance an infrastructure bank.
2) Refinance all mortgages in the country at below market interest rates, with principal reductions of at least 25% for those that are underwater. For all practical purposes, the government is the mortgage industry. There’s no reason to waste more time trying to prop up home prices, which are likely to fall further, and/or predatory lending.
3) Guarantee all state government deficits for the next 3 years. This would stop the steep anti-simulative decline in government employment for people who are teachers, firemen, and policemen.
4) Call Ben Bernanke and have him raise the inflation target to at least 4%.
5) Announce the US will be pursuing a weak dollar strategy for the foreseeable future.
6) Lower the minimum age for Social Security eligibility to 60. Those over 55 who’ve lost their jobs will likely never work again.
7) Lower the minimum age for Medicare eligibility to 55. See point 6.
Allow the Bush tax cuts and the payroll tax cuts to expire.
9) End the wars in Afghanistan and Iraq by the end of 2012.
What’s needed right now, just at is was in 2009 (but wasn’t forthcoming, thanks to the Administration’s cowardice) is very large scale stimulus, on the order of at least $2 trillion; that’s the output gap at present and that gap will grow larger without further action.
Reducing unemployment is by far the most effective bang for the buck.
Putting people back to work will raise tax revenues and reduce the deficit in the medium term.
Getting more people into Social Security and Medicare will reduce long-term deficits substantially. The government is far more cost effective at managing retirement and health care than the private sector.
Ending pointless wars will reduce the size of the Pentagon’s budget and contribute to long-term deficit reduction.
All of these things are what a real leader would propose: the economic situation in the country is dire and there is only one political party that is serious about solving this problem.
If the Know Nothings won’t go along, then tell the American people to chuck them over the side in the 2012 election.
Gorilla says: “Time to be bold, time to cease half assed proposals and bipartisanship!”
