Ideas for Economic Recovery

economic recovery

Targeting of spending means putting the money directly into the hands of those who can use it to develop the economy and create jobs.

Propping up state and local governments, while not an entirely bad idea, does little to create jobs and can be left for later. In the meantime, the states should be allowed to operate at a deficit, issuing bonds to keep them going, and making up the debt with increased income and fiscal austerity once tax revenues have come back.

The money needs to be placed in the hands of small and medium-size businesses, in the form of grants or low-interest loans,.This would allow these businesses to expand, innovate, develop new products, and put people to work. Bailing out an already sick industry is not the answer. We see now that Chrysler will not be able to introduce new models based on Fiat products for several years. We also see that GM has not been successful in selling the Saturn brand, and will now abandon it. Despite the bailouts, the ship continues to the bottom. Read more