Since World War II, the way in which America has overcome depressions and recessions are with infrastructure building and scientific advancement. So, why has it taken the President so long to propose a jobs bill that proposes one or the other?
We got out of the Great Depression primarily due to infrastructure building, including such worthy endeavors as the national highway systems and Hoover Dam. Projects like going to the moon staved off economic worries and put thousands to work.
There are only two ways to improve an economy of a country: get people to spend money and/or cut what the government is spending. The current administration is cutting like mad, but there is only so much cutting you can do and still have a government. So, we need people spending money. Unfortunately, people are still worried about the economy, so they are hording their money. If you put more people to work, get more people spending money, then other people's worries are relaxed and they spend money, too. It's an odd cycle, but the government actually needs and wants each person to "keep up with the Joneses," as the old saying goes. If the Joneses buy something, and you buy something of equivalent or better value, and the Smiths buy the same or better than you, then the economy improves and the entire country improves.
The nation's infrastructure is crumbling. We have 100-year-old sewer systems and water pipes, decades-old roads and bridges, dams and waterways that are close to collapse, overcrowded and technologically ancient airports, and other issues throughout this great nation. If we can get even half of the almost 10% of out-of-work people to fix those issues, then the economy booms. Because those people cannot do the work without training, which puts teachers and trades to work training them. And all of those workers need oversight, so there are those who will be put to work administering the projects. And, it is frequently less expensive to build temporary houses/communities nearby to where the people are working than to try to commute them to the work-site, this put builders, contractors, architects, and more people to work. And these people need food, clothing, entertainment, etc. while they are working on these tasks, so many thousands more get work. Once the snowball gets rolling, you can see that many people get jobs and many people are spending money, and the economy for all is improved.
The second thing that America needs to do is re-teach people to buy American. Yes, we all want the best value for our dollar. We all want the deal. But buying American does two things: it gets the buyer a quality product and it pumps those dollars spent back into the American economy. The reason we've had more recessions and depressions in the economy over the last 30 years is the rise of cheap foreign goods on the market. Because everyone wants a deal, they buy the cheaper foreign good. However, the money spent is siphoned back into the American economy; instead, it goes to the foreign company and improves its workers and the economy wherever it is based. So, rather than the money siphoning its way back upstream to the American manufacturer, who then has more money to invest in making more product for more Americans to buy, that money enriches only the end-vendor (the Walmart, Target, Best Buy, etc.) and then the money leaves for the foreign company's coffers, enriching its workers' lives and its country's economy.
The third thing we need to remind Americans is that, while 'keeping up with the Joneses' helps the economy, and buying America keeps the economic engine running, buying within your means keeps you, personally, safe while you do it. Too many thought the housing bubble would never burst, and got talked into 100-year mortgages for houses costing $750,000 on a $35,000 a year income. Too many more became convinced that having 10 credit cards at 19% interest and $20,000 limits each was fine. But as the bills piled up, they never thought about the fact they had over $100,000 debt sitting on those credit cards, on top of that house they really couldn't afford, with that $35k a year job. They felt they were fine just making the minimum payments and continuing to charge, charge, charge, never once realizing that the credit card companies were getting rich off of them and they had balances that wouldn't be paid off in their lifetimes at the rate they were going.
Fourth, we need to relearn accountability. You are not entitled to have a house. You are not entitled to have a car. You are not entitled to have that college education. You are not entitled to have that executive position. All of these things must be earned. First, by doing well in school. Only the top children, those with the best grades and academic achievements should be going on to higher education. Everyone else should be going to trade schools, military, or straight into the work-force. Once in the work-force, you should have to work for advancement. You should be getting top marks in your field. You shouldn't be complaining that Joe and Sally do less than you but get more pay, you should be outworking everyone and earning that extra pay.
Lastly, we need to hold our politicians accountable for the laws they pass (or don't) and how they behave both in office and toward their constituents. Most of us are moderate. We lean left on some things, we lean right on other things. Most of us can agree to disagree and come to a compromise that favors us both, regardless of our leanings. We need to hold our elected officials to the same standards we hold ourselves and our neighbors. When they do wrong, kick them out of office. Watch their voting records and call them on it when/if they vote against their platform or for something you don't like. When they lie to us, kick them out. If they are found stealing from us, taking bribes, or doing anything illegal, fire them and send them to prison. Make both sides talk to each other and compromise on the end-result. As it has been said, a good deal profits all and benefits none; our Republican and Democrat representatives should always feel like they left something on the table, but that the deal going forward will benefit the country at large and the people in particular.
I'm hoping that the President's new plan to put people to work will be approved, whether outright or with significant (but not overwhelming) input from both sides to make sure it is fair, reasonable, and sound. I also hope this is but a phase 1 of a multi-faceted plan to teach Americans how to be responsible, how to save AND spend their money, and how to be accountable. And here's hoping that the people accept it, keep an eye on it, and learn from these current issues and hurdles and do better over the next decade and beyond.
"Take something you love, tell people about it, bring together people who share your love, and help make it better. Ultimately, you'll have more of whatever you love for yourself and for the world." - Julius Schwartz, DC Comics pioneer, 1915-2004
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September 12, 2011
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My Chinese student and I were shopping Saturday and we both noticed how many of the items I selected are stamped with Made in China. As we talked on the drive home, I remarked that we COULD take all the people on the public dime, the welfare recipients, the unemployed, the social security recipients, and open our own factories to make our own goods and allow these people the dignity of earning their benefits of being American citizens receiving a hand up during tough economic times.
ReplyDeleteHe agreed: he says that the Chinese will work for pennies, so that's what they are paid so the Chinese government can sell the output to America really cheap. The rich Chinese who own the factories get wealthier, while Americans lose their jobs.
His goal is a degree in finance: I'd hire him to do my taxes!
*matisme
I've been more conscious lately of where things are made. I try to choose a North American product where possible; I don't mind paying a bit extra as long as the product is what I want.
ReplyDeleteI'm not confident that relearning entitlement can be achieved. I wish it could, but it feels like those days are far behind us. It feels like that may be with us for a while.
Roads and infrastructure are so significant. If those aren't in shape, then buying anything becomes more difficult.
Good blog, dear. I wish it was as easy as it sounds.