Solving the Fiscal Cliff – Five Easy Steps

So much talk about the economy and what can be done to save us from the fiscal cliff. I’ve broken it down to the uber simple with these five steps.

The first problem: The Offshoring of Manufacturing Jobs

American companies that wish to offshore production should not get a free ride. This practice is dangerous because it causes a pile up of dollars with foreign countries which then purchase US assets and buy up the country. It also destroys the tax base, personal success and livlyhood, and in general is a very destructive practice. But these countries practice slave labor or have repressed populations that they use like cattle so what can be done?

The congress will not increase taxation on corporations a la Paul Craig Roberts. And we can’t mandate that companies simply produce here out of good will when they know a competitor can offshore. I think many companies do not so much offshore out of evil in their hearts as much as fear of competitors doing it. So we have to remove this incentive and fear. One way to do this is with tariffs but tariffs have a bad name. Instead we can simply set up a “Security Fee” on all imports, presumptively to prevent Al-ciaduh but practically it can be done and passed in congress. And raise this fee to match the financial outflows of dollars. With dollars balanced the country will reinflate our internal dollar circulation promoting the national success. This includes trucks, boats, and airplane cargo – anything which comes into the country. This is a JOBS BILL because all those new port inspectors are good respectable union jobs.

Finally we have to address the currency peg of the RMB to the dollar. The US should start pegging its currency to the RMB at a level which will neutralize the “BIG MAC EFFECT” where a big mac costs only one dollar in China but four dollars in America. So if 6 RMB are one dollar, then the US should begin exchanging one dollar for two RMB. What will china do print money? we will just print more. This circular currency peg has never happened before between two money printing nations and it will be interesting to see how it plays out. Either both countries will hyperinflate their currencies or China will back down on its currency peg. Another possibility is to force China to accept a fully floating currency with the threat of imposing a currency peg to them. We have to take this down.

Finally end the importing slave labor visas – the B1, the H-1B, the L-1 (reduce it to either 5 or 1/1000th a companies population per year)

The second problem: Illegal Immigration
30 Million Illegal Aliens have hunkered down with anchor baby American citizens. Each receives 60,000 a year in freebies from the government. Government welfare should be for citizens only and recognizing pregnant mexicans who make it across our borders as giving citizen babies is ridiculous.

We need to immediately state that the 14th amendment does not now nor ever intend that foreign peoples who come here and have babies be recognized as citizens. Furthermore, all children 12 years of age or younger who were incorrectly recognized as citizens WILL HAVE THIS REVOKED. We need to do this second part as well even though it will be hard because there are so many millions of them already here.

Finally, illegal immigration needs to result in hard jail time. Three months for a first offense, and then three years for a second. Finally if someone is so brash to do it a third time, thirty years. It can be a national campaign – Tres Meses, Tres Anos, Trenta Anos. Obey the law.

With tough prison and enforcement of the law, combined with no birth right benefits, the illegal alien flood will stop. At the same time we need to end chain immigration for those 14th amendment citizen anchor babies as well through legislation. While we will still have a huge population of hispanics, the pause in immigration will give them time to assimilate and stabilize.

Finally, all new immigrants should receive NO BENEFITS until they obtain citizenship.

The third problem: Endless Wars

Ending the wars is one of the hardest problems. They have bankrupted us and cost over five trillion dollars. We need to pass a law that says that all children of congressmen aged 18-21 will be drafted to serve in any war, skirmish, or foreign police action which requires more than a million dollars of budget expense, for a period of one year on the front lines. The wars will stop immediately.

The fourth problem: Welfare and Disability Growth: Section 8 Housing and Having Large Numbers of Kids to get Priority Housing in our Welfare System
We do not want to breed like rabbits the dumbest and worst of us but that is exactly what American welfare policy does. Because you cannot get free section 8 housing easily the more kids the better. Downtrodden illiterate teens start having kids at fourteen and by the time they are on their own at eighteen they have the requisite four babies to get them free housing. But our best and brightest are forced into hard collegiate programs then demanding corporate jobs, no time for kids until at least thirty years old. This dysgenic effect will destroy our nation. We need to reverse the incentive and we can stop by ending the section 8 housing program all together. It’s a bad program and its also very destructive because no matter how huge housing prices are the state pays for it. Instead, the state should build very meager tiny low cost housing out of solid concrete. Simple shelter rooms ten feet by four feet. A minimal kitchen. Pop out beds from wall. A basic humble shelter but nothing to be proud of. This will encourage people to get off the welfare rolls as soon as they are able to, yet not be cruel or harmful like putting people into the streets. We need to incentivize industry to build these offering them guaranteed profit levels for doing so and each city should simply count up their section 8 numbers, double that, and build that level of housing. Yes crime will be bad around these units, so they need to be spread out and not be the high density high rises of times past. Since the units themselves are small, forty of them can be built in a small space. Have a design competition for the most interesting efficiency housing using solid concrete and molds for low cost construction. They can even include 40 inch tv sets, safely placed behind solid plastic theft barriers. As a modern nation, not guaranteeing housing for all people is a disgrace and throwing our veterans and single males into the streets while those who have many children they can’t afford get housing makes no sense. It’s time to address the section 8 housing issue correctly. These small units will incentivise people that there IS an advantage to going to work and getting into nicer housing. What is the incentive for them to do so if they already get to live in a nice modern house?

That takes care of the section 8 madness, now what to do about getting our college kids to have kids? We need to REQUIRE colleges to offer reduced course loads and acceptance of women who take a year to have a child, housing for married students, and additional tax credits for those in college who have kids so they have the money to do so. Let’s show them that it is the priority of the government that they have children and keep having children. We should follow the policies of other countries which guarantee a job to return to after having a baby, and support for the husband to take time off as well to help with the difficult first year. And start a media blitz that tells our best and brightest that it is a great thing to have kids and as young as possible and that it wont sidetrack their careers. Pass bills requiring big corporations to provide for on site child care nurseries. We need a pro baby culture and today we are quite backwards.

Congress seems flummoxed about the huge rise in people on disablity. Age, workplace conditions, nothing seems to account for it. Until you factor in race. Then there’s a perfect correlation. Also states have to pay into welfare roles but not disability roles so they are hiring counselors to push welfare people onto disability claims if at all possible. Solution? Have states pay THE SAME whether people are on disablity or welfare!

Look again at the medicare chart at the top of the article. Prices are going up dramatically because doctors REFUSE the middle class pay cut that the rest of us have been forced to swallow. They still drive their porsches and look at some of the salaries that doctors make – $540,000 for a cardiologist, $670,000 for a neuralsurgeon. Is it any wonder that our medicare costs go up? If doctors are playing the we demand our porsches game, because they are paid for by insurance NOT by people, we need to reset this and give people direct checks to pay out of their insurance accounts, let people benefit from choosing the best doctors for the price we need to get price dynamics BACK into health care. I recently called five doctors asking them how much an office visit would be and none could give an answer they all said “Up to one thousand dollars” thats the best we can do? Come on! Someone we have to return the sense of spending REAL DOLLARS to patients. So that hospitals will stop charging us 200 dollars for a cottonball. And also we need to stop the huge onslaught of illegal aliens at hospitals that send costs through the roof. We need LAWS that going to the emergency room for the sniffles results in ARREST. Emergency rooms are for emergencies not the sniffles. And somehow we have to make that very very clear to our illegal invaders.

Step 5: Promote Entrepreneurship:
Finally, a fifth step, would be to offer assistance to entrepreneurs for two years as they try to start a company, similar to unemployment insurance but perhaps a bit better paid, a kind of sabbatical to innovate. We need to push innovation and without capital investment, this has gotten ever harder. Such a program would require approvals and reviews of the company proposal and work, but then, that would give the SBA something real to do rather than simply offer courses on remedial accounting for the dumb. Obama’s matching investment program is a good first step, but also needed are provisions so that people can get SBA loans without having to put their house on the chopping block.

If these steps are enacted, and they can ALL be done even in a negative political environment, the country will turn around within five years. And a new age of propserity will ensue. And a new unity. And once again we will pull together as Americans. And if they are not, then states will secede, our best and brightest will leave for better countries, and we will be in a heck of a mess.

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2 comments

  1. Let the states secede. We’ll never get the kind of change you propose because that would require honest politicians. Enough said.

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