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Rabu, 30 April 2014

Our Economic Woes and Their Cure

Our greatest economic woe is that not many people around the world are buying our goods like they were before 2008. The reason is that there is large-scale unemployment in most places. This coupled with a large amount of debt, carried by governments, pension funds, and individuals, have left people and governments searching for solutions. For individuals and families, financial austerity is the answer, but all too many governments around the world are applying this same logic by cutting services to their citizens. Businesses will not create jobs until they see customers. They won’t see enough customers until unemployment is reduced. This is a problem without a solution unless the federal government steps in and creates jobs. We all know that our infrastructure needs a makeover. Now, at a time when our government can borrow at 1.6% on a 10 year loan, we should put aside our debt fears and do a job that needs to be done. This will create jobs, then customers, then the expansion of other businesses, and finally greater tax revenue to pay off the debt.
I hope we can be smarter now by avoiding the war that some of our politicians are aching for, and instead replace our ailing infrastructure with new, innovative solutions. Some projects can be: installing fiber optic cables in all cities, building a countrywide high-speed rail system, reworking our electric grid, subsidizing green industries, etc. True some existing industries will suffer, but just like the buggy-whip makers of old, they will have to find ways to adapt to the changes or fade out of existence.

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