It Really Is The Economy

What should be done to further spur economic growth in the United States. When most politicians especially the Republicans keep spouting that the business community if left alone without governmental intrusion will create the economic momentum needed to remedy our current economic crisis. Just recently there have been many articles that focus on the continuing plight so many Americans are still facing. That is the continued wage gap in relation to the rising cost of living. In too many instances those workers who have managed to rejoin the employment rolls still have yet to receive salaries that equate to living wages. When so many Americans still are grossly under paid it correlates directly with very slow consumer spending. All of which translates into a continuing downward spiral of our base economy. Prolong wage stagnation triggers personal incomes to fall over the long term. When we are faced with ever-increasing energy prices,  the recent  sub-prime mortgage mess resulting in the still continued foreclosure crisis, along with our government's trade and federal deficits it is no wonder we are still facing an uncertain future.

There is a way to rid ourselves of this clear and present danger of what the lack of prudent fiscal policies from business to our own government is doing to the United States Economy. In essence, what has happened through the federal governments refusal to lessen the burden on Americans by a disproportional tax system and corporate greed is an escalation of economic instability.

Most businesses today are in survival mode now and have been for the past 30 year becoming more self- focused and less interested in providing living wages to their employees. Whatever it takes to increase the bottom line. Gone is the motivation to produce quality, durable and reliable goods and services. Compounding all of this is the fact that the government's refusal to ease the financial burden on all Americans brought on by, again, corporate greed from our energy producing industries which brought us ever increasing fuel prices. The continued Mid-East crisis has only exasperated the situation where the price that we pay at the pump is only going to increase.This leads to the rising cost of living, the increase of personal debt, and a spiraling downward economic climate. If nothing is not done millions of Americans will undoubtedly face a very grim future.

In another recent report does not portray an accurate account of personal wealth in the country today. Personal incomes are continuing to fall by more than 7% annually. The majority of Americans earn far less than they did, say ten years ago, factoring in the cost of living today. An example is in Hillsborough County in Florida, where the majority of people earn less than $30,000 per year while the cost of living requires a salary of at least $45,000 per year.

With the ever increasing cost of doing business every where businesses are succumbing to the pressures of keeping up the profit margins. In doing so they contract, whether it be in the form of lay-offs, wage stagnation, or even wage reductions etc. This is very similar to the period of the early 1930's. Remember, "What we have to fear is fear itself." Franklin Roosevelt understood what fear in the business community will do. Only through bold initiatives could pull the United States out of the Depression. Passage of the New Deal was crucial in helping to bring about lasting economic growth. Today what is needed to bring about lasting economic growth is a partnership with our government and businesses to work together in conjunction to pull the United States out from further economic decline. This starts with revamping our trade agreements. It would suffice to say that our free trade assessments has only done the exact opposite by encouraging business to expand overseas instead of here in the United States. Instead of free trade we have to implement equal trade with other countries and impose a higher tariff on goods coming in from China, India and even Mexico.

Businesses now will be able instead of contracting, expand. One of the worst things that the United States is still doing is not providing opportunities for growth and expansion. This is essential for every one. Instead of waiting for an economic turn-around the United States has to create one. This is done by bracing new technologies, expanding product bases, and generating real living wages so that all workers will be able to purchase the goods and services that they produce and enable communities to have sufficient tax bases to support all the governmental mandates such as public education etc. where with out a sufficient tax base more economic contraction only continues. 

Implementing National Economic Reform with it's ten articles of confederation [ a similar proposal is scope and magnitude to the New Deal ] is essential to combine the resources that are needed to solidify economic growth. This along with a renewed effort by businesses to generate new products and expand existing ones will greater an economic expansion unparallel in our history. In doing so the United States will again usher in renewed economic growth, maintain a higher level of national security, restore our nations credibility in the world, and produce lasting prosperity for all Americans.