Moving Beyond Interest Rates for a Renewed Economy
6. Tax Incentives for Targeted Groups
The federal government can offer tax incentives to certain target groups. The government should choose those groups that invest in research for new products and/or expand their current operations to create more products that will have a significant positive impact on the economy.
7. Create Federal Work Projects
In the past, when business couldn’t or wouldn’t expand, the federal government instituted its own work programs. The government found projects that needed to be done (i.e., road building, dam building, cleanup of federal properties, etc.). The government hired people to do the job, and the people worked, got paid, felt good, and spent money, thus having a positive effect on the economy.
8. Negotiate More Favored Trade Agreements for American Products
There are restrictions on exporting our products to and selling our products in many countries. An effort can be made to lift these restrictions to make American-made products more attractive to overseas buyers. Lifting restrictions will increase revenue and profits and cause businesses to expand by hiring, etc. Well, you get the message by now.
9. Read America’s Current Economic Downturn and the Solution.
Summary
The preceding essay describes eight ways to motivate the economy in addition to the Fed lowering interest rates. There are numerous variations of each method plus an unlimited number of additions that bright government minds can think up.
There is no guarantee that these programs will turn a poor economy around. Two ingredients are necessary to ensure an economic rebound: (1) The ability and conviction to start, manage, and conclude each program. These are economic fixes, not societal changes. (2) These programs require a well-educated society, and won’t work in an illiterate society. Consequently, the government’s commitment to education of the program’s reason should be at the highest level.
Conclusion
Since World War II, there have been nine recessions. Since World War II, there have been nine economic recoveries. That’s a 1000 batting average. These recoveries were mostly encouraged through the federal government’s management of monetary policies by changing interest rates. These successes by the government were accomplished without using many of the other options available to stimulate the economy. Given this track record, it’s not wise to bet against the future success of the American economy.
A healthy, happy seasons greetings, and a happy new year to all!
