Congressional Super Committee Fails: What Needs to be Done to Fix Our Broken Economy

So the economy is no better off than it was six months to a year ago, in fact it is probably worse off. Little has been done on a federal level to embrace real austerity measures. It is rather ironic our market has pressured the European Central Bank, France and Germany to control the national agendas of Greece, Ireland, Spain and Italy into embracing a new economic system that runs contrary to their culture, while us Americans sit back split over how to handle our own debt. Inaction is a malignant tumor, it fester and has effectively left the nation vulnerable to so many economic variables that we as a nation have accepted the culture in Washington D.C. without demanding a shift in the paradigm.

I have had many conversations with friends on both side of the aisle, men and women that have a world’s worth of valuable information on how to fix our growing debt over a matter of time. Economics is not a science but it does tap into studies that are exact sciences which can aid in curing what the Congressional Super Committee was sent out to achieve. In reality the amount of money they are arguing about is rather small; in terms of the big picture what we as a nation should be most concerned about is being downgraded further by Standard & Poors and Moody’s; our version of Europe’s Central Bank. Not being able to appease these two ratings standards will invariably cause the interest rates of our national loans to increase to dangerous levels.

Well how do we fix it?

It’s not simple and it is not easy and curing our debt debacle will not happen overnight but there is a bit of a catch 22 laid down in front of the nation that we must confront in a unified manner.

Before the simplified solutions I would like to present the statistical date we are currently facing. One in ten Americans are unemployed at the very least a quarter of the nation is what we call underemployed. That is they have jobs and make money but due to rising costs of basic goods; propped by regional inflationary rates, and working for wages that are not livable are forced to struggle in their day-to-day lives. I believe the statistic given is one in every six Americans struggle to find where their next meal is coming from.

Let us turn those ratios into numbers you can really wrap your mind around. At least thirty million Americans (30,000,000) are out of work and those are only the people who report to unemployment for government assistance. The actual number is probably around fifty to fifty-five million Americans as over time benefits run out and some people invariably quit their job hunt momentarily for a little emotional reprieve; which really puts to light how the statistic of one in six possible. This does not touch on the subject of children who struggle in what are known as government dependent families.

It is very difficult when you put a number to a statistic to suggest congress punish these people by virtue of being effected by a harsh economic climate. Though there are some who are just genuinely lazy and love to leech on the fed.

The one of a few viable social entitlement programs one could foresee there being room for deduction is in Social Security. The national retirement age has to be extended, while still appealing to those who are incredibly close to retirement and those who have already retired. Seniors are statistically proven out of all the demographics to come out and vote when they believe the entitlement programs they rely on are in jeopardy. The cruel fact is that Millenials cannot support Generation X or the latter end of the Baby Boomers who will anchor our economy into greater debt. Millenials are out of work and in debt and in this economy the work that is most appealing to them is work that is off the books. Why give back when there is so much owed to begin with?

Second of the entitlement programs is the pharmaceutical bill passed by the Bush administration of which we had no means to pay for due to a lack of revenue from annual tax collection and have been paying for it through loans from China. I’m sorry but congress has to allow the licensing of drug production to Canadian companies. Doing so will undercut the oligopoly currently control by Pfizer and the like and lower the market vastly improving the quality of life for every American suffering old and new to this economy.

To increase revenue collection we have to invest in new industry and not rely on the finance industry to buoy up our sinking ship. So where are the next bubbles at? Do they have to be bubbles at all?

They’re in tech, improving our nation’s communication networks to prevent cyber-attacks and overhaul our aging sewer and electric systems that are all controlled by software that has now proven to be hackable. A water plant in Springfield, Illinois was recently hacked possibly by the Russians; the details of the event have still yet to come to light however, preliminary signs are suggesting that with Putin returning to office one can place their money on that dark horse.

The other two tech industries that desperately need to grow are based off one unpredictable variable, oil. The automotive sector and the solar sector have huge opportunities for growth if it were not for this ridiculous push in fracking for natural gas, clean coal and the Alberta Sands Oil. Yes they can produce jobs now but in terms of sustainable long-term growth the United States has to focus on relatively green technology. We can lean on Arabian oil all we want but we cannot stand as a self-sufficient union of states so long as we are dependent on this import. This is a call for a practice in some form of American isolationism.

The Department of Defense the other big chuck of the pie that is constantly increasing our national debt needs to be cut down to. Many argue that because we live in the age of terrorism that is impossible but we have learned time and time again in the wars of our fathers and our own (Iraq and Afghanistan) that a large physical military presence is costly not just monetarily, but also measurable national morale. Drone warfare and clandestine covert operations are now at the forefront of our nation’s defense. To fund things like the Osprey; a failed hybrid deployment aircraft, just distracts from what we should be concerned about and that is that this Republic is at risk from within not over there.

We have to import less and export more and unfortunately for conservatives that means taxing corporations and incentivizing new production plants through federal development grants and embracing the American work force, something that is only more expensive than China’s because that nation artificially depreciates the value of its currency in an effort to break our economic might. The Chinese are rather aggressive when it comes to hurting Main Street USA.

This country is just one big knot that we have to untie carefully. We have to acknowledge that the federal government will have to increase some taxes and spend in order to propel our nation back into the black. Amending the Constitution will serve little value and notions that a flat tax while deemed “fair” by some would just hinder the government from responding adequately to our nation’s growing list of concerns in the long term. Norquist’s “Starve the beast” tactics are failing Americans across the board. If we had a well-managed tax system; the likes of which has been dismantled over a decade of cuts and protective clauses, I highly doubt our nation would be as deep in a recession as we are now.

These politicians in Washington are so hung up on getting re-elected they fail to see the error in their ways. It’s not about a ten-year legacy in congress it’s about the small votes and concessions made to affect change for this nation that provides generations with an opportunity to be more than a freelancer or an unpaid intern, to aspire beyond being a Wal-Mart manager or head sales at the Gap. Ego is this nation’s hubris we have to all be effective CEO’s and be able to look at America from the outside in and not be effected by images of America wrapped in glory, because there is no glory in poverty, no glory in not being able to put food on the table, or grinding it out for a job that may get out sourced or just completely vanish. If I had a high paying job I would be yelling tax me, because I cannot deal with the low aptitude and idiocy of our current college and high school graduates. For my protection I must have people around me who understand the difference between flammable and inflammable.


One response to “Congressional Super Committee Fails: What Needs to be Done to Fix Our Broken Economy

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