Here is an economic plan that will not require a bailout. Why don't the government take the balance of the TARP's rescue funds and any future stimulus funds, place it into a CD with each bank that has received a portion of the original 700 billion dollars bailout, negotiate a return of 5-10 percent return on the money. Take the earned interest amount paid each quarter have the disbursed portion of earned interest put directly into a separate payroll account managed by a payroll service provider (i.e. ADP) that will pay the payroll obligations to any company seeking to stabilize its business during this or any recessionary period. This will secure jobs, allow the companies to concentrate on its growth, create an infusion of cash to the banks so that it could free up the credit crunch and begin to lend money, stimulate consumers' spending and most importantly, the principle amount of the tax payers' money placed in the CD will not be put at risk. This type of action will create transparency and accountability which can be implemented on January 21, 2009. The problem is that President-Elect Obama and the transitional team does not know it exist because I am not in the inner circle with contacts or have the President-Elect's ear. However, you as the reader(s) can be the judge. If you determine that the attached plan can jump start our economy, preserve our investments for the future and protect the tax payers' money in the process, let me know, tell your neighbors, your friends, family members, the media and especially your congressman or congresswoman that this is a plan of action that should be given immediate consideration. The solutions for the Housing & Job Crisis by using small businesses to jump start the economy, which can take effect on January 21, 2009.
Stop & Prevent Foreclosure: Establish eligibility of loan modification within 72 hours and establish a safeguard procedure that will prevent the homeowner from re-defaulting on their loan modification agreement.
Stabilize Property Values: Retention of home ownership in order to prevent declining sale value and reduce inventory of foreclosed properties where homeowners are in possession or retain title of ownership.
Stimulate New Investments: Develop Partnership Investments. New tax structure to create incentives for high income earners above $250,000 per year which will create capital, job creation and business growth, without a tax increase.
Create Job Growth: The program will match employers with employees who are enrolled. The job placement program projects a minimum employment growth of 100,000 new jobs per month, 30 days after the implementation of this program.This will create the business model the government can use for the 21stcentury economy that will ride on the innovation of the Internet. For questions regarding this outline, please contact Allen B. Shay: Shayandassociates@hotmail.com (Email) COPYRIGHT © 2008
The Right Way Back
Email To A Friend
Please fill in the following information and we'll email this link.
Education
America became an economic superpower because we have always welcomed the best and the brightest, and because our top-quality public schools have produced the best and brightest. But our education system has been stuck in neutral for several decades, while other countries have had their foot on the accelerator. As a result, not only are we losing low-skilled jobs to nations with lower wages, but more and more of them are competing with us for high-skilled jobs.
In traveling the country and the world, you know how important it is for our students to learn more math, more science, more engineering and more technology. The problem is not that we don't spend enough money on education—we spend enormous amounts, and far more than any other nation. But we are pouring it into an outdated and inefficient production model that, like the American auto industry in the 1970s, is largely driven by the power of unions, rather than the needs of consumers (students).
The first President Bush aimed to become the "education president," and all of his successors have pursued the same mantle. But all have tinkered around the edges of a broken system, and all have fallen short. You can be different, but only if you pursue top-to-bottom change. And as with energy policy, we need an "all of the above" approach, whether the ideas come from the right or the left. That means higher standards, higher salaries, merit pay, tenure reform, school report cards, a longer school day and more. These reforms have been essential to our success in New York, and if they can be achieved here, where labor unions and special interests have held sway for decades, they can be achieved across the nation.
Getting It Done
Of course, an economic agenda this ambitious will not come free. It is the responsibility of leaders to set priorities and make tough choices. Programs that don't pass a cost-benefit analysis, that have been driven by politics rather than economics, should be cut. For example: subsidies for corn ethanol and agribusiness, massive outlays for defense projects that our armed forces do not want—and the list goes on.
Making tough choices also means deciding between a stimulus package that is focused on job creation and long-term infrastructure, or a politically popular quick shot in the arm that sends checks to Americans. We cannot afford both.
Tough choices will also require us to look at the revenue side of the ledger. The handful of old Laffer Curve fans still standing may continue to allege that cutting taxes can raise revenue in a bull market, but certainly not in a downturn. The reality is that the time when governments most require money is when people are least able to afford paying it. The reason to run surpluses during the good times is not to spend them, but to mitigate the deficits in tough times. Unfortunately, Washington squandered that opportunity by spending with reckless abandon for years. Now we have little choice but to find new revenue streams.
If we have any hope of balancing the budget, the alternative minimum tax cannot be entirely eliminated. In addition, demand for revenue will necessitate bringing back the estate tax—because it makes too much sense. It will both raise revenue and encourage more wealthy Americans to donate to charity. Government should incentivize the maxim I plan to follow: "The ultimate in financial planning is to bounce the check to the undertaker."
Discuss