by Darrell Udelhoven
If I were in a position of economic policy making I would be looking at the following policy moves or changes.The core economic problem we have is an extreme imbalance in the distribution of real per capita earnings to the broad-based mass consuming demand-side sectors of our economy here in America and globally.
The spread between the capital owners' profits and the real earnings of small producers and business operators, family farmers and most employees must be addressed.
Tax cuts skewed to benefit the wealthy will do little for the demand-side of America's economy and would probably go largely towards foreign investments. We don't need an over indulgence in "supply-side economics" investment as we did under President Reagan, those office building factories etc., ended up getting boarded up and were a waste of investment money. All that kind of tax cut will foster is the buying up of farms and other holdings that will be lost by the less well-to-do debtors.
- Work to help free Microsoft from the antitrust law suit. The computer sector has taken far too big a hit already and it is time to reverse those forces. I just heard Microsoft is talking about settling to get out of the legal mill. Policy Makers need to give the stock markets all the support they can.
- Work with Greenspan and the Federal Reserve Board to get the necessary interest rates cuts, by not pushing for a huge tax cut skewed towards the wealthy sector. Though Greenspan went too far with six interest rate hikes, he and the Board are needed to get a soft landing.
- Abandon Free Trade for Fair Trade as well as for Fair homeland and foreign Investment Policies. This includes the use of tariffs and import quotas where needed. Develop policies that encourage Homeland investments and that will improve the economic distribution of all wealth production.
- All of our elected representatives need to work towards developing incentives to create a giant new renewable energy resources industry that will create an economic boon and solve our energy and pollution problems at the same time.
- Incentives should also be created to develop the needed technologies to conquer existing pollution sources at home and globally. These technology must be domiciled in America, --not exported to foreign countries.
The only thing that can save this economy is a major change in national and global economic policies that will help shore-up and build-up a broad-based per capita increase in real earnings on the Demand Side of America's, and the entire global economy.
If President Elect Bush is for the same Voo Doo Reagan Trickle Down Economics that has already failed, he is likely to fail, as well. Greenspan will not tolerate such policy making behaviors.
The Republicans that are for Bush obviously don't understand National or Global Economics or they would realize Trickle Down economic policies are proven failures! Raising the real earnings of hourly wage earners and the earnings of small business operators will solve the tax and any fiscal deficit problems by balancing out the Demand Side earnings sector of the economy with the more narrowly based Supply Side big time winners.
As we pay down the debt we will be enabled to reduce interest rates and reduce taxes as we expand the economy without causing inflation or producing economic downturns.
Yes, Ralph Nader was right on the larger policy issues but couldn't get 5% of the vote. Of course, that is why we need campaign finance reform and more inclusion in the presidential debates, but will President Elect Bush support support it? Wouldn't it be great if he would be his own man, --support the right things and tell the party to take a hike!
My Real Political Issues and Economic People Empowerment Pages
My People Empowerment PagesThe Real Political Issues and People Empowerment
Empowerment Communications © 2000
Darrell Udelhoven
"Demand Side Economics verses Supply Side Economics."
Posted: 12/27/00