How to Improve the Economy
I see the simplest and most publicly supported ways of improving the economy are as follows:
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Continue increased public works projects through stimulus bills and support for growth of small businesses.
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Fix the banking system to ensure that all low rate loans given to banks by the Fed and the Government are directly loaned out to businesses and individuals and stop banks from investing in dividends like hedge funds making a quick buck while risking the future of the economy. It doesn’t make sense that banks got into the dividend and hedge fund market in the first place. Banks should be lending money, not conducting high risk gambles with low interest loans from the Feds and the US Government. If you have access to the lowest interest loans from the Feds and US Government, then your job as a bank is to loan money, not gamble. We need to stop hedge funds and investment brokers from getting their hands on low interest loans from the Fed and the US Government, it is crippling our economy. The moment that banks can only make money by loaning money is the moment that credit will start flowing again and the economy will return to how it originally is supposed to operated like in the 90’s before laws were passed by democrats and republicans that ended the divisions between hedge funds and banks. Now even Goldman Sacs is a bank, as long as we allow it to be. Goldman Sacs and many other hedge funds, and previously normal banks are now collecting huge sums of money from the US Government and the Feds at low interest rates an instead of loaning that money out and having available credit for the economy, they are risking that money on short term gains through wall street and dividend markets simply because it can be more profitable than lending to businesses and individuals to support the growth of the economy and keep families in their homes. The law to eliminate the division of banks and hedge funds in the late 90’s explains why for the first time in decades the economy has had absolutely no growth over the last ten years. Lets make this law in california now, why wait for the US Government.
Additional more extravagant ideas I support are as follows:
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Support development of local economies that buffer and support national and global economies. -
Create a financial parliament of representatives from organizations and businesses to help develop policies that manage the balance of the economy(s). Self organization is key to a thriving economy, and we have to trust businesses have great ideas of how to improve the economy. Give them a chance. Businesses are taxed, why not give them a vote to help create policy?
Also see ideas for these following issues which also relate to the economy:
Jobs
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