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Ideas to solve the American economic crisis

The continuing talk of economic recovery points directly to the heart of our economic woes. Pundit after pundit, expert after expert cites the need to restore consumer confidence in order to get people buying again. The problem with this line of thinking is that it accepts that the U.S. consumer is the key to unlocking this mess. While this belief may be true in the short term, the real problem lies in the fact that our economic health and well being violates the very foundation of that old saying, "Don't put all your eggs in one basket."

What our economy needs is a diversification into sectors that do not primarily rest upon a single pillar for strength. In the past,our financial health rested upon many factors, several pillars, so that when one grew weak, the others helped buoy the load, which in turn resulted in a lessening of an impact upon our economy.

Now more than ever, we need to look at this current crisis as an opportunity to restore older, tried and true financial and economic bases so that we are never faced with such a crisis again.

First, we need to reward the banks and financial institutions that showed wisdom and resisted the temptation of fast, high-rate returns on risky loan and credit practices. Why in the world would we want to spend our economic rescue money on bad debt? That money will not be re-injected into the economy, but will instead be used to offset losses from the financial institutions' horrid business and investment practices. We should instead use that same money and reward those institutions that showed restraint and common sense. By doing this, we are making that money, all of it, immediately available to loosen the credit crisis that consumers, businesses, municipalities, and states now face. Let the banks and financial geniuses that brought us to this precipice fail, as any business that practices bad judgment ultimately does.

Second, we desperately need to invest in developing business services and products that have a world-wide appeal. America grew strong upon our ability to export, and this is one pillar of our economy that has been allowed to crumble. Key to this is identifying products and services that everyone in the world will buy, and the obvious choice is energy. If we focus government investment into developing and manufacturing alternative energy sources and alternative energy source equipment and expertise, we can assure that future generations will reap the benefit. The world acknowledges the need, and we cannot


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Ideas to solve the American economic crisis

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    by J. Lee Kenser

    Keep in mind that all monetary policy is based loosely on the credit system - think of Monopoly and the promissory notes.

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    Applied Capitalism could save America's economy if the government were willing to make the citizens economic partners and

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    President Obama is open to suggestions as to how to solve the American economic crisis. It has taken many decades of inept

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    by Robert Sullivan

    Technology has always been capitalism's trump card. Since the Industrial Revolution began, every time the market economy

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    by Kenneth Boser II

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Ideas to solve the American economic crisis

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