My Economic Stimulus Plan
While Congress doles out billions of dollars of debt, to their pet projects, I would like to suggest an alternative approach. One that I believe would help the economy without too much political interference.
1. Increase domestic oil drilling. Energy is the life blood of the economy. The cheaper energy is the more competitive we are, and the lower the cost of living is. That means more disposible income for everyone, which means more spending which means more jobs. Oil is a commodity, it creates wealth. It creates well paying jobs. They may even be union jobs. The Democrats say it is not worth it because it will only be an increase of 1-3% of our oil needs. OK, in 2007 we produced about 8.5 million barrels per day. That is 3.1 billion barrels a year. The current price for a barrel of oil is about $40.00 dollars. So if we were to add 2% to the oil we produce, we would add another $620 million dollars per year to the economy and would reduce the amount of money we are giving to Opec by the same. Like most businesses most of that $620 million is going to pay salary, taxes, and equipment. That is a decent amount of new jobs, and other companies that supply materials for the oil industry will benefit, but most of all, the Oil companies have the money to start investing in more drilling. We don't have to give them a cent. Just open the places up and let them create jobs and wealth. But what is Congress doing? They are pulling back on oil drilling and not allowing anything to move forward. They would rather take from the workers we do have to pay others to not work. Not much stimulus there.
2. Invest in green energy, nuclear technology, and clean coal. OK this is where government can actually live up to their rhetoric and provide help. The cheaper our energy the better the economy. The more energy we produce ourselves, the smaller our trade deficit, The less pollution we produce the less health problems we have. We need green technology for the future, everyone agrees to that. So we need government investments to help get these emerging technologies to the market. There are plenty of creative places where we can use solar power to our advantage. Go to any mall in a "Sunny" state, and you will see acres of asphalt surrounding a massive building pumping tons of chilled air into the structure to create a comfortable shopping environment. Since I live in a sunny state I can tell you that after leaving that comfortable environment and getting into a car that has been exposed to 100+ degrees of heat is not fun. But you could create a canopy of solar panels in those enormous parking lots that would provide shade for the cars and provide for all the electricity to run the lights and air conditioning. You could probably produce enough to sell back to the utility companies. Lets see, more jobs in solar technology, reduced expenses for the stores that allow them to lure customers in with lower prices, and a more comfortable environment for shoppers. Why that would mean more spending and more jobs, with a small amount of government investment.
And then what about nuclear power? We know the Dems. only want to talk about wind and solar, and while these are important, they are ignoring the fact that we know nuclear energy very well. We know it is efficient and creates a lot of well paying jobs. Nuclear power should be on the table as well. The same goes for clean coal. The U.S. is the Saudi Arabia of coal, and if we can use coal and control the green house gases, then we have an abundant supply of domestic energy.
3. Build desalination plants. California and other Western states are facing water shortages. These shortages can affect how much food is produced in those regions as well as the populations of important food sources such as fish. Yet at the same time we have miles after miles of ocean shores in the West. Building desalination plants will produce fresh water to support agriculture and wildlife. Fresh water is a commodity that can be sold. It would create new jobs, and new sources of tax revenue. Increasing water flow in Western rivers will help protect important populations of salmon. More water for agricCut corporate taxesulture means more food can be grown domestically. That means more jobs and more money. Desalination plants can have a dual role. They can use tidal generators to power themselves and excess energy can be sold to power nearby cities. More fresh water, more jobs, more taxes, more green energy, less money to Opec. And what does the government need to do to build these plants? Probably nothing. They just need to open up some areas along the coasts to allow companies to build them. There are companies in the U.S. that have this technology. And there are companies that have money to invest in a profitable business. Just put out the bids to have them built and they will come.
4. Cut corporate taxes. For years upon years the government has hiddent their true cost on the U.S. economy by taxing corporations. This is one of their favorite ploys because it goes along with the screw the rich class envy that the Democrats use so well. But the true cost of these taxes are born as always, by the average American. The big companies pass these taxes on to us in the way of lower wages, higher cost of goods, and by moving jobs overseas. So I say we need to cut corporate taxes which are the second highest in the world. Cutting these taxes would make our goods and services more competitive here and overseas. That means more domestic consumption, and more exports to other countries. History has shown that the simplist way to jump start the economy is to reduce taxes. The problem is that doesn't fly with the Democratic program of wealth re-distribution, which is what most of the money in the so called economic recovery act is all about. If you must make a compromise to the Dems to get corporate taxes cut then I have a suggestion. Cut the taxes of those corporations that hire American workers the most. That may be an incentive to help keep jobs in America. Or you could make the tax cut a ratio of domestic to foreign workers. So if a companies work force is 60% domestic and 40% foreign, then tax 40% of their income at a higher rate, and tax 60% at a lower rate. Unlike many conservatives, I don't believe in a Lasse Faire economy. I know that for a corporation the most import thing is cutting cost, and they needs rules, and incentives to keep from trying to enslave their workforce which is their biggest cost by far.
5. Bail out the auto industry. This is a hard pill to swallow for most conservatives, but in this instance I think it takes on strategic importance. The U.S. auto industry and General Motors in particular are two years away from turning the auto industry on it's head with revolutionary electric vehicles. These vehicles are going to create a dramatic drop in our oil consumption and green house gases. That is as long as we build up our nuclear, clean coal, and green energy supplies. This drop in oil consumption will have a far reaching and lasting affect on the price of oil. It will drive down our need for foriegn oil which will ensure a lower price per barrel. The technology will rely on high powered lithium-ion batteries for now, but it will produce a surge in battery technology that can and should be produced domestically. These cars will go 40 miles on a charge. Industry studies show the vast majority of drivers drive less than that each day. So for most people on most days, they will not use a drop of gas. On the occaision that they need to go farther, a small generator kicks in to charge the battery as you drive for unlimited range. The current technology calls for internal combustion engines (ICE) that use regular gas or e85 gas. In the future they could be changed out to use hydrogen and eliminate the use of gas completely. But even with the ICE engines, the average fuel economy for someone who drives beyond the 40 mile range will be around 100 MPG. How is that for economy? This technology has too much potential to improve our environment, and our economy to let it slip away due to partisan politics.
6. Do not nationalize the banks. Politicians are great at blowing hot air. And they are great at taking credit for things they didn't do, but they are not particularly good at managing money or businesses. The governments job is to regulate commerce, not participate in it.
So there is my economic stimulus plan, create jobs by drilling oil, invest in clean energy, nuclear energy, and clean coal. Build desalination plants to help the Western states, cut corporate taxes, and help the auto industry bring revolutionary technologies to the market. And do not nationalize the banks.
It seems like a simple proposal, that doesn't involve a lot of government pork for Democratic pet projects. That is what we need now, common sense, and practical solutions that go beyond just reducing taxes.
- Thomas Paine 2
1. Increase domestic oil drilling. Energy is the life blood of the economy. The cheaper energy is the more competitive we are, and the lower the cost of living is. That means more disposible income for everyone, which means more spending which means more jobs. Oil is a commodity, it creates wealth. It creates well paying jobs. They may even be union jobs. The Democrats say it is not worth it because it will only be an increase of 1-3% of our oil needs. OK, in 2007 we produced about 8.5 million barrels per day. That is 3.1 billion barrels a year. The current price for a barrel of oil is about $40.00 dollars. So if we were to add 2% to the oil we produce, we would add another $620 million dollars per year to the economy and would reduce the amount of money we are giving to Opec by the same. Like most businesses most of that $620 million is going to pay salary, taxes, and equipment. That is a decent amount of new jobs, and other companies that supply materials for the oil industry will benefit, but most of all, the Oil companies have the money to start investing in more drilling. We don't have to give them a cent. Just open the places up and let them create jobs and wealth. But what is Congress doing? They are pulling back on oil drilling and not allowing anything to move forward. They would rather take from the workers we do have to pay others to not work. Not much stimulus there.
2. Invest in green energy, nuclear technology, and clean coal. OK this is where government can actually live up to their rhetoric and provide help. The cheaper our energy the better the economy. The more energy we produce ourselves, the smaller our trade deficit, The less pollution we produce the less health problems we have. We need green technology for the future, everyone agrees to that. So we need government investments to help get these emerging technologies to the market. There are plenty of creative places where we can use solar power to our advantage. Go to any mall in a "Sunny" state, and you will see acres of asphalt surrounding a massive building pumping tons of chilled air into the structure to create a comfortable shopping environment. Since I live in a sunny state I can tell you that after leaving that comfortable environment and getting into a car that has been exposed to 100+ degrees of heat is not fun. But you could create a canopy of solar panels in those enormous parking lots that would provide shade for the cars and provide for all the electricity to run the lights and air conditioning. You could probably produce enough to sell back to the utility companies. Lets see, more jobs in solar technology, reduced expenses for the stores that allow them to lure customers in with lower prices, and a more comfortable environment for shoppers. Why that would mean more spending and more jobs, with a small amount of government investment.
And then what about nuclear power? We know the Dems. only want to talk about wind and solar, and while these are important, they are ignoring the fact that we know nuclear energy very well. We know it is efficient and creates a lot of well paying jobs. Nuclear power should be on the table as well. The same goes for clean coal. The U.S. is the Saudi Arabia of coal, and if we can use coal and control the green house gases, then we have an abundant supply of domestic energy.
3. Build desalination plants. California and other Western states are facing water shortages. These shortages can affect how much food is produced in those regions as well as the populations of important food sources such as fish. Yet at the same time we have miles after miles of ocean shores in the West. Building desalination plants will produce fresh water to support agriculture and wildlife. Fresh water is a commodity that can be sold. It would create new jobs, and new sources of tax revenue. Increasing water flow in Western rivers will help protect important populations of salmon. More water for agricCut corporate taxesulture means more food can be grown domestically. That means more jobs and more money. Desalination plants can have a dual role. They can use tidal generators to power themselves and excess energy can be sold to power nearby cities. More fresh water, more jobs, more taxes, more green energy, less money to Opec. And what does the government need to do to build these plants? Probably nothing. They just need to open up some areas along the coasts to allow companies to build them. There are companies in the U.S. that have this technology. And there are companies that have money to invest in a profitable business. Just put out the bids to have them built and they will come.
4. Cut corporate taxes. For years upon years the government has hiddent their true cost on the U.S. economy by taxing corporations. This is one of their favorite ploys because it goes along with the screw the rich class envy that the Democrats use so well. But the true cost of these taxes are born as always, by the average American. The big companies pass these taxes on to us in the way of lower wages, higher cost of goods, and by moving jobs overseas. So I say we need to cut corporate taxes which are the second highest in the world. Cutting these taxes would make our goods and services more competitive here and overseas. That means more domestic consumption, and more exports to other countries. History has shown that the simplist way to jump start the economy is to reduce taxes. The problem is that doesn't fly with the Democratic program of wealth re-distribution, which is what most of the money in the so called economic recovery act is all about. If you must make a compromise to the Dems to get corporate taxes cut then I have a suggestion. Cut the taxes of those corporations that hire American workers the most. That may be an incentive to help keep jobs in America. Or you could make the tax cut a ratio of domestic to foreign workers. So if a companies work force is 60% domestic and 40% foreign, then tax 40% of their income at a higher rate, and tax 60% at a lower rate. Unlike many conservatives, I don't believe in a Lasse Faire economy. I know that for a corporation the most import thing is cutting cost, and they needs rules, and incentives to keep from trying to enslave their workforce which is their biggest cost by far.
5. Bail out the auto industry. This is a hard pill to swallow for most conservatives, but in this instance I think it takes on strategic importance. The U.S. auto industry and General Motors in particular are two years away from turning the auto industry on it's head with revolutionary electric vehicles. These vehicles are going to create a dramatic drop in our oil consumption and green house gases. That is as long as we build up our nuclear, clean coal, and green energy supplies. This drop in oil consumption will have a far reaching and lasting affect on the price of oil. It will drive down our need for foriegn oil which will ensure a lower price per barrel. The technology will rely on high powered lithium-ion batteries for now, but it will produce a surge in battery technology that can and should be produced domestically. These cars will go 40 miles on a charge. Industry studies show the vast majority of drivers drive less than that each day. So for most people on most days, they will not use a drop of gas. On the occaision that they need to go farther, a small generator kicks in to charge the battery as you drive for unlimited range. The current technology calls for internal combustion engines (ICE) that use regular gas or e85 gas. In the future they could be changed out to use hydrogen and eliminate the use of gas completely. But even with the ICE engines, the average fuel economy for someone who drives beyond the 40 mile range will be around 100 MPG. How is that for economy? This technology has too much potential to improve our environment, and our economy to let it slip away due to partisan politics.
6. Do not nationalize the banks. Politicians are great at blowing hot air. And they are great at taking credit for things they didn't do, but they are not particularly good at managing money or businesses. The governments job is to regulate commerce, not participate in it.
So there is my economic stimulus plan, create jobs by drilling oil, invest in clean energy, nuclear energy, and clean coal. Build desalination plants to help the Western states, cut corporate taxes, and help the auto industry bring revolutionary technologies to the market. And do not nationalize the banks.
It seems like a simple proposal, that doesn't involve a lot of government pork for Democratic pet projects. That is what we need now, common sense, and practical solutions that go beyond just reducing taxes.
- Thomas Paine 2
Economic Recovery, Economic Recovery Act, stimulus plan, economy, Obama economic policy
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