Since I am still at the Holiday Inn Express, I will now give my opinion on fiscal policy. In its simplest form, fiscal policy is comprised of two levers: spending and taxes and you can raise the lower them independently. Pretty easy, eh? Not exactly. When the short term needs are completely opposite the long term objectives you have a problem. Today, we have an anemic economy that needs stimulus, but our long term objective is to reduce debt by cutting spending. Factor in that many of the necessary actions will be unpopular and you have a government that is unable, unwilling and ill prepared to do what is necessary. Since, I am not a politician, I’ll take a shot at it:
1) Extend Bush Tax cuts for everybody through 2012.
2) Initiate a 6 month payroll tax holiday
3) Accelerate foreclosures on the 2.5million homes that are in the process of repossession and the most serious of the 11 million others that are underwater. Government should not absorb the liabilities.
4) Cut unemployment benefits back to 26 weeks.
5) Cut defense spending by 5% year over year for the next 6 years.
6) Cut Social Security and Medicare benefits for individuals under 50.
7) All other government offices must come up with 10% cut in spending. The private sector does it all of the time, time for the public sector to get its act together.
8) Cut corporate tax rates to 20% BUT eliminate the tax break loopholes for R&D, capital investments, etc.
9) Increase federal grants and loans to develop alternative energy including nuclear power and fuel drop ins.
10) Match Singapore in economic freedom by allowing entrepreneurs a red tape-free process to getting a business of the ground.
11) Get real Healthcare reform that stops rewarding treatments and rewards prevention.
12) Legalize marijuana and prostitution.
13) Provide pathway to citizenship for illegal immigrants.
14) Regulate derivatives
15) Make the natural gas industry comply with the safe drinking water act.
16) If teachers unions don’t want to live in a world of pay for performance, then privatize the entire system.
17) Cut congressional salaries and benefits to match the same level of a cross section of white collar middle managers.
18) Shoot all lobbyists
19) Hire regulators that are competent.
20) Eliminate all ear marks
21) Pass a constitutional amendment that requires a balanced budget
22) Enact the line item veto
23) Pass true campaign finance reform.
24) Remove all reality shows from TV
25) Audit the fed
26) Senators have (2) four year terms and congressmen (3) two year terms
27) Government and academia individuals must disclose if they are being compensated for anything resembling an oral or written opinion.
28) Push education in STEM (Science Technology Engineering Mathematics) not Bullshit like ancient Druid Poetry
OK, it kind of spiraled beyond fiscal policy. Sue me.