What Business Has To Do To Improve The Economy
Tim Williams
October 26, 2008
What should be done to spur economic growth in the United States.
A recent article on stagnating wages is a direct correlation with consumer spending, 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 sub-prime mortgage crises, and our government's trade and federal deficits running up to imaginable amounts. It is no wonder we are faced with 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. This leads to the rising cost of living, the increase of personal debt, and a spiraling downward economic climate. If nothing is not done, we will be thrust into an era much worse than the 1930's.
The 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 or closing divisions 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 bringing 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.
Businesses instead of contracting must expand. The worst thing they are doing is not providing opportunities for growth and expansion. This is essential for every one. Instead of waiting for an economic turn-around we have 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.
The United States Govenment must pass National Economic Reform. A similar proposal in scope and magnitude to the New Deal of the 1930's only updated for the 20th century. This along with a renewed effort by businesses to generate new products and expand existing ones will greate an economic expansion unparrelled in our history and in doing so will bring about economic and national securtiy, restore our nations credibility in the world, and produce lasting prosperity for all Americans.
A recent article on stagnating wages is a direct correlation with consumer spending, 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 sub-prime mortgage crises, and our government's trade and federal deficits running up to imaginable amounts. It is no wonder we are faced with 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. This leads to the rising cost of living, the increase of personal debt, and a spiraling downward economic climate. If nothing is not done, we will be thrust into an era much worse than the 1930's.
The 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 or closing divisions 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 bringing 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.
Businesses instead of contracting must expand. The worst thing they are doing is not providing opportunities for growth and expansion. This is essential for every one. Instead of waiting for an economic turn-around we have 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.
The United States Govenment must pass National Economic Reform. A similar proposal in scope and magnitude to the New Deal of the 1930's only updated for the 20th century. This along with a renewed effort by businesses to generate new products and expand existing ones will greate an economic expansion unparrelled in our history and in doing so will bring about economic and national securtiy, restore our nations credibility in the world, and produce lasting prosperity for all Americans.
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