Trapped in a corner

 So, how in the world did our country get into a mess that it is in today?

I guess we can go back to when Clinton and Gingrich left office. At that time, they left with a yearly surplus. While we still had a debt and other problems, they seem to be manageable at that time. Enter Bush and it was an 8 year disaster. 

Normally to get out of recession, you have tax cuts and have the federal reserve lower interest rates. And this can be done in a span of 2 to 3 years. And when the economy is good, you cut spending.

We are not in a normal recession today. And these are the problems we are up against.

*Under Bush you had tax cuts for 8 years. It was borrowed money, it was spent, and it was for the here and now. Since spending was not cut, we saw deficits and debt. So today, we cannot do the normal tax cuts as it would just be more borrowed money. It is like crying wolf too many times. It was the roaring twenties.

*The fed has had lower interest rates for a long time now, this creates a low dollar and possible inflation. At some point the fed will have to raise interest rates. And the fear is that this could slow the economy down at a time we need to create economic growth. Deflation/inflation anyone? 

*Tax cuts today may not do as good as before if people buy goods. Half the goods sold in this country come from China or some other country.

*Jobs continually go to China and other countries. While this was minimal under Clinton, it certainly gained momentum under Bush. Globalization has not been addressed. All we heard is that "free trade is good" and anything else was ignored.

*We have not invested in our country. You cannot have jobs go overseas, money going to Iraq, and neglect ones country. And yet, that is what we saw for 8 years.

*We had a financial crisis, a housing crisis, and an auto crisis at the same time.

*And I ask. What widgets can be made here and not in China if you want to create jobs?

*Trickle down does not get down to the last 20% to 30% of the population. 

So since we cannot normally reduce taxes and lower interest rates and expect the same kind of recovery as in the past, the only answer is to invest in your country, in your people, and in the future.

1. Invest in your country: That is energy independence. You do everything from drilling to nuclear plants, to alternative energy for security and for jobs. A new air traffic control system would give airlines to fly more direct routes, which means fuel savings. The money saved would go for new aircraft and that would create jobs. 

2. Invest in your people: Mandatory vocational training. Everyone should have a skill by the time he graduates. Or at least have a consoler direct the student to the right direction. You will need an educated society to deal with globalization.

Hudson Institute > Promoting U.S. Worker Competitiveness in a Globalized Economy

3. Invest in the future. That is in all sciences and stop using religion to stop embryonic stem cell research. You do all the innovation you can. You also can maximize federal research grants and invest money into universities and businesses to create new researches and jobs. Right now there is no "new" jobs to go to.

Is America Losing Its Mojo? | Print Article | Newsweek.com

Now, I have heard all this crap about the constitution, trickle down, and cutting spending. Some of it well and good. However, none of that manages the problems of the day. Republicans want to sit on ideology. I am pragmatic. You have to fix the country and recognize problems and not sit on laissez-faire. The republican party sits on a right run by the Limbaughs and Hannitys and they say the same thing over and over again. We see it on this website. That is cut taxes. But that is not enough. Ideology is not enough. You see Palin saying we need tax cuts. DeMint saying the same thing. Does anyone in the party have a brain? I saw jobs lost in my town while we had 8 years of tax cuts. Where was the republican party? Oh, that's right, you were stuck in Iraq and neglected Afghanistan and your own country. 

We know that democrats will go to welfare policies. And at this point, that is the only straws that cities and states can grasp. We cannot compete with 2 to 3 billion cheap laborers in the world. We have seen our jobs lost, and if you keep one or go to another one, then it is for less money and benefits. So now we resort to bailouts of cities and states, extension of unemployment benefits, cash for clunkers, and casinos for every state. Well, this is a fine state of affairs. While you can sight the constitution in not doing anything, you will turn around and spend money in other countries. So you can blame democrats all you want, but you turn your back on the American people. 

We have seen the glorification of ideologies by Bush. "Stay the course" and run the country into the ground. And he got his answers from a "higher authority." Hollywood could not do any better painting a picture like this.  A delusional president caught up in the wrong war, answers to God, has failed ideology, and runs our country into the ground. 

And guess what? Republicans just go on repeating the same o thing. 

So we are caught up with deficits and debt, war, and failed ideologies.

China is investing in Africa. They are buying raw materials. They have made contracts for oil. Their growth is at 8% or more. They are taking our jobs. They have money. They are building whole cities, high speed rail, and has the worlds largest airport. 

Now, guess who is winning? 

As it is now. We will have a jobless recovery. And to do the things I have said will have results 10 to 20 years from now. There is no other choice and little time to succeed.