Originally posted by racerdan:
Since alot of people are pretending to be economic experts and perhaps some of you may be, well then may i pose a questions as to what would help stimulate this "down economy" (just for the record my finances have never been better, 401 and all) a tax increase? or just ride the supposed minor recession out? I would really like to hear solutions rather than the doomsday predictions.
I won't claim to be an economics expert, but I do have a Bachelors degree in the subject.
I think the US is suffering economically because of stagnating growth and overall economic pessimism by both consumers and businesses. Because we are pessimistic, we are cautious in our spending habits.
In addition to these issues, we are having some degradation of our infrastructure: our roads, ports, industrial areas, and schools.
My recommendation is that we hold taxes the same, or perhaps mildly increase them, and create infrastructure improvement programs focused on rebuilding the basic transportation infrastructure that serves american business. I'd also like to see us improve funding for secondary, vocational, and college education for low and middle income families.
This would create and maintain a large number of middle income jobs. That would stabilize cosumer demand, which would improve business confidence. The education programs would also contribute to a stronger workforce, maintaining american competitiveness, and again, increasing business confidence.
If business confidence increases, investment will increase, and that will have the long term effect we are looking for.