Balancing a plan for economic recovery
Michelle Malsbury, BSBM, MM
November 19, 2008
Yesterday the big three American automakers made their case before congress to be included in Paulson´s bailout plan. Republican leaders were not in favor of the previous plan and are even less in favor of this one. However, Democratic leaders believe that we need to make our economic recovery plans as inclusive as possible such that all sectors have equal access to the allocated funds from the Feds along with stipulations as to how such funds can be spent, when they might be repaid and how, as well as who will be tasked with oversight and transparency of such funding. Where do we strike the right balance?
Since Henry Paulson´s plan tosses billions, perhaps trillions, of dollars out into our dwindling marketplace, especially Wall Street investment banks and insurance companies, why not print more money at a previously unprecedented rate and then mitigate the rampant inflation and devaluation of our US Dollar at home by discounting prices for goods and services across all sectors? Follow my logic here. The global markets will match or mirror whatever suit we play here in America, because we have forced their hands and taken the lead, providing ample coverage in the currency markets that can balance all markets at once and begin to move us into economic stability.
Next, we nationalize our auto industry, banks, insurance companies, and investment organizations to rein in the unfettered greed that created this debacle in the first place. Gone will be the days where corporate CEO´s are paid outlandish salaries, bonuses, and severance packages. Cap all top executive salaries, bonus plans, and severance at no more than $2 million dollars per year. Retain as many employees as they can manage to pay for by providing tax incentives or cuts in corporate tax structures and once the money begins to accumulate back in the black pay dividends to the stockholders who have been harmed as their stock prices fell into near zero dollar territory while the CEO´s padded their pockets with millions of dollars in bonus pay. Caps need to be set on credit card interest such that it is no higher than 2% above the current Fed Rate. Banks need to be forced to lend again and in doing so they need not unfairly penalize the public by setting unrealistic standards in order to secure loans. Some measure is necessary to ensure that those getting loans can repay them and do not add to the already over burdened foreclosure market across America, but that need to be done with regulations targeted at not lending more than any institution has in liquid assets instead of what we previously allowed under the deregulation. Greater oversight need play a key role in how this portion of the plan unfolds in order to ensure that all businesses are operating in the best interests of the public.
The auto manufacturers do deserve some aid in my esteem. A problem I see with the auto industry is that they manufacture too many varieties of automobiles and that they pay too much, compared to our global counterparts, for labor, production, and insurance. All costs need to be reduced such that they can become competitive once more. This means limiting the number of choices for automobiles to be produced. Previously, I suggested that the auto makers produce one compact car, one SUV, one truck, one luxury car, and one crossover vehicle and do that to the best of their collective abilities. The same regulations for CEO pay need be implemented in this sector too with regard to salary caps, no bonuses, and severely limited severance packages. Tax incentives need to be allocated to the big three such that it forces our automobile manufacturers into creating vehicles with increased MPG´s and alternative fuel capabilities. By funding new technology we can help America to assume a leadership position in the increasingly global marketplace and lessen our dependence on foreign oil.
Nationalize our railways, ports, and air terminals so we can begin to work on restructuring/rebuilding their infrastructures making them more modern, accessible, and profitable in the process. Profits can be funneled back toward paying for these new measures. By adding routes on our railways we can substantially decrease our dependency on oil for transportation of goods across our nation, increase public transportation to and from the workplace, and better connect our people in rural America with urban America. Securing our ports need to include scanning of every container that comes from foreign ports into our land and increasing our security personnel at these prone locations. Air Terminals need to be updated and modernized such that the security and ticketing lines are short and expedient for all passengers. Unless we secure our ports, railways, and air terminals we cannot ensure that we have done all we can to make America safer against any potential future terrorist activities.
Monies need to be allocated for our floundering schools. Perhaps a best path there would be to create a national educational system such that all schools in all states and locales are teaching the same things at each grade level. Teacher compensation needs to be increased such that we can hire and retain the best talent to educate our children possible. Without an investment in our children´s education we cannot produce the next generation of leadership for America. Monies also need to available to all persons who wish to pursue college educations so that we can bolster our innovative and creative potential and assume a leadership role in our new global society that we can all be proud to be a part of.
Jobs need to be created that service our national infrastructure from rebuilding our roadways and bridges to securing our borders, ports, railways, and air terminals to researching and designing alternative fuel sources that can move us toward true energy independence to beefing up our educational organizations to making affordable, quality healthcare a reality for ALL Americans. With a little planning and organizing and a lot of support from congress and the people America can achieve great things. I believe this is a priority for President-elect Obama and hope we can follow through with a workable and balanced economic recovery plan. Yes we can!
Since Henry Paulson´s plan tosses billions, perhaps trillions, of dollars out into our dwindling marketplace, especially Wall Street investment banks and insurance companies, why not print more money at a previously unprecedented rate and then mitigate the rampant inflation and devaluation of our US Dollar at home by discounting prices for goods and services across all sectors? Follow my logic here. The global markets will match or mirror whatever suit we play here in America, because we have forced their hands and taken the lead, providing ample coverage in the currency markets that can balance all markets at once and begin to move us into economic stability.
Next, we nationalize our auto industry, banks, insurance companies, and investment organizations to rein in the unfettered greed that created this debacle in the first place. Gone will be the days where corporate CEO´s are paid outlandish salaries, bonuses, and severance packages. Cap all top executive salaries, bonus plans, and severance at no more than $2 million dollars per year. Retain as many employees as they can manage to pay for by providing tax incentives or cuts in corporate tax structures and once the money begins to accumulate back in the black pay dividends to the stockholders who have been harmed as their stock prices fell into near zero dollar territory while the CEO´s padded their pockets with millions of dollars in bonus pay. Caps need to be set on credit card interest such that it is no higher than 2% above the current Fed Rate. Banks need to be forced to lend again and in doing so they need not unfairly penalize the public by setting unrealistic standards in order to secure loans. Some measure is necessary to ensure that those getting loans can repay them and do not add to the already over burdened foreclosure market across America, but that need to be done with regulations targeted at not lending more than any institution has in liquid assets instead of what we previously allowed under the deregulation. Greater oversight need play a key role in how this portion of the plan unfolds in order to ensure that all businesses are operating in the best interests of the public.
The auto manufacturers do deserve some aid in my esteem. A problem I see with the auto industry is that they manufacture too many varieties of automobiles and that they pay too much, compared to our global counterparts, for labor, production, and insurance. All costs need to be reduced such that they can become competitive once more. This means limiting the number of choices for automobiles to be produced. Previously, I suggested that the auto makers produce one compact car, one SUV, one truck, one luxury car, and one crossover vehicle and do that to the best of their collective abilities. The same regulations for CEO pay need be implemented in this sector too with regard to salary caps, no bonuses, and severely limited severance packages. Tax incentives need to be allocated to the big three such that it forces our automobile manufacturers into creating vehicles with increased MPG´s and alternative fuel capabilities. By funding new technology we can help America to assume a leadership position in the increasingly global marketplace and lessen our dependence on foreign oil.
Nationalize our railways, ports, and air terminals so we can begin to work on restructuring/rebuilding their infrastructures making them more modern, accessible, and profitable in the process. Profits can be funneled back toward paying for these new measures. By adding routes on our railways we can substantially decrease our dependency on oil for transportation of goods across our nation, increase public transportation to and from the workplace, and better connect our people in rural America with urban America. Securing our ports need to include scanning of every container that comes from foreign ports into our land and increasing our security personnel at these prone locations. Air Terminals need to be updated and modernized such that the security and ticketing lines are short and expedient for all passengers. Unless we secure our ports, railways, and air terminals we cannot ensure that we have done all we can to make America safer against any potential future terrorist activities.
Monies need to be allocated for our floundering schools. Perhaps a best path there would be to create a national educational system such that all schools in all states and locales are teaching the same things at each grade level. Teacher compensation needs to be increased such that we can hire and retain the best talent to educate our children possible. Without an investment in our children´s education we cannot produce the next generation of leadership for America. Monies also need to available to all persons who wish to pursue college educations so that we can bolster our innovative and creative potential and assume a leadership role in our new global society that we can all be proud to be a part of.
Jobs need to be created that service our national infrastructure from rebuilding our roadways and bridges to securing our borders, ports, railways, and air terminals to researching and designing alternative fuel sources that can move us toward true energy independence to beefing up our educational organizations to making affordable, quality healthcare a reality for ALL Americans. With a little planning and organizing and a lot of support from congress and the people America can achieve great things. I believe this is a priority for President-elect Obama and hope we can follow through with a workable and balanced economic recovery plan. Yes we can!
Print
Share
Email
