I’m not going to have a law of the week this week. Rather I’m going to talk about what I want to hear out of Obama’s mouth this week when he brings out his “jobs plan.”
He states that his new plan will create jobs. This is a fascinating concept as the government has never been able to do such a thing except for a short period of time and always at a detriment to the overall economy and not to its benefit. Always at an increase to our debt. But that doesn’t mean that there isn’t a way to stimulate the economy to recover…although, and I know no one wants to hear this but it’s true, that before we hit a recovery we need one last dip in the economy (the stock market, the housing market, all other commodities markets will probably take a hit and we’ll see another rise in inflation and unemployment) and we need to get through it but our only options are either bring on the next dip now and get through it as quickly as possible or to delay this last dip and every day we delay it means it will be longer, deeper, and hit more people when it comes. I’ll take the shorter pain now than the worse pain later, thank you.
So what I do I need to hear from Obama if he was A) intelligent enough to know how to improve the economy and B) willing to actually do it?
First ObamaCare has to go. It must be overturned in its entirety. There is not a single line worth keeping. This will allay a lot of fear about hiring new employees and get businesses to start planning to grow again. Further it will keep health cost down. With this needs to come laws that will allow insurance companies to cross state lines (and not just medical insurance, I mean every kind of insurance). This will drastically and immediately lower the costs of insurance across the board. Not only will this reduce the overhead of all major insurance companies (meaning they can charge less and still make a profit) the added competition will drive down the prices even further and all companies that offer insurance to their employees will quickly be paying less for every employee which will make expansion even easier.
The U.S. government needs to cut income tax, corporate taxes, and capital gains taxes by at least 5% across the board. Further the death tax and marriage penalties need to be permanently eliminated. To accompany these cuts ALL loopholes will be removed from ALL tax codes (yes that means GE will finally have to pay some taxes). I’d really love to see a flat tax, or even better switching to all sales tax, but I’m willing to take a baby step in this area. The sudden influx of money to both personal and business bank accounts will help spur further economic growth and expansion.
Federal money for unemployment benefits needs to be ended for anyone who has been out of work for more than six months. To avoid some unnecessary pain we can of course give them a 90 day notice, but this perpetual dole needs to end.
Everyone employed by the federal government (except the military) is taking a 10% pay cut. You’re overpaid sons of bitches deal with it. (Elected officials can take a 100% pay cut).
In addition to the 2.4 trillion we have already agreed to cut as part of the debt ceiling agreement, for every dollar of tax revenue that we are no longer taking in because we lower the tax rates the federal government will cut $100 dollars of spending from its budget. Not only will that keep us solvent, it will improve our credit rating, reduce the debt, strengthen the dollar and improve the economy.
The law needs to be passed that within the next 10 years the Federal Reserve will raise the prime interest rate to 6% and then never touch it without the express permission of congress and the President and only then for a limited period of time. No industry can grow with the interest rate being this low; it discourages all investment and risk taking. Yes we’ll have some inflation but it will also stimulate growth that should outpace the inflation.
Alaska and the Gulf Coast are open for full drilling, but any environmental damage will come with a fine equal to 10 times the cost of the clean up (that will ensure the oil companies quadruple check every safety measure), which will lower energy prices and thus offset most if not all the inflation caused by the raising of the interest rate.
All the insane regulations that stop the construction and running of oil refineries. Right now it is next to impossible to build an oil refinery and all the regulation is based on horrendous my of global warming. Yes there do need to be a lot of regulations about running oil refineries because they deal with a lot of chemical that could be very harmful to the environment if released…sadly about 10% of the regulations we have in place. The rest is BS. Oh, and while we’re on the subject of oil refineries, did you know that every state requires different blends of gasoline. This is insane because it requires the refineries to refine 50 different kinds of oil. We need to come up with one national set of requirements, it can’t be done by federal law, but it needs to be done by the states on their own because it will drop the price of gas by several cents.
The Departments of Commerce, Agriculture, Energy, HUD, HHS, Edu, Transportation, Interior and Labor will cut their staff by at least half (although I’d prefer firing just about everyone in these useless sinkholes of red tape and tax payer money).
The EEOC, National Labor Board, and EPA will undergo a full review of their powers and have most of their authority stripped.
A Constitutional Amendment which will guarantee nationwide “open shops” for all businesses will be proposed. Also all unions for federal employees need to be disbanded. (Also I wouldn’t mind if the heads of the teacher’s unions were brought up on treason charges as their continual actions to destroy the U.S. education system is at best treason—crime against humanity might be more accurate.)
A Constitutional Amendment redefining the Commerce Clause as applicable only to commerce that actually moves across state lines will be proposed. Further the defined commerce clause will limit the scope of the federal government to acting in ways only to prevent impediments to the free commerce and economic activity between states, not to put up new barriers of its own.
All U.S. trade tariffs will be abolished. Tariffs only hurt the consumer and protect failing businesses.
All government regulations will be up for review (I’d say put Rand Paul and Michele Bachman in charge of this committee) with the purpose of reducing all federal red tape by at least half if not more.
Tort Reform Laws must be passed immediately.
The federal government needs to A) stop forcing banks to make subprime loans (which means the Community Reinvestment Act needs to be scrapped) and B) it needs to stop suing banks for making those loans.
Finally those wastes of space and volume known as Fannie Mae and Freddie Mac need to stop being quasi government organizations. Either the federal government needs to buy up all private shares or it needs to sell its own stake in the company. Either way right after that the entire assets of Fannie and Freddie need to be liquidated at Fire Sale prices and the organizations disbanded. Yes this will cause housing prices to drop once again, but it will also provide stability to the market, make houses affordable, and encourage banks to finally loan money again. And to everyone who bought a house for more than it was worth…I don’t care, you bought a house when all the signs were there that the market would collapse, you bought a house when it was stupid to do so, you did not think, time to face the consequences of not thinking ahead.
Now if Obama did all of that you would have three things happen. First, the country would be back to 2% or less unemployment within 5 years. Second, the economy would grow like never before and this growth would actually permeate the entire world and even Europe’s financial problems would be nearly gone in a little over a decade. And third, I would actually vote for Obama in 2012.
But we know that Obama isn’t bright enough to know what will actually fix an economy.
Nope, I predict what we will hear is more of the same. Stimulus. ‘Cause that’s always worked before (at least in the delusion fantasy world that liberals live in).