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By XMFBreakerTinker
July 8, 2009

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The solution is not higher taxes, greater government regulation, or triple up economics in which temporary jobs are created at the cost of $500,000 per job.

The solution is to stimulate with some fiscal stimulus, for immediate needs (not needs down the road when the stimulus is now.) The way to do it is a payroll cut for every American who WORKS.

The stimulus effect would have been immediate; it would have put extra money into the pocket of every working American, so that they could indeed pay down their debts, their mortgages, etc., and provide incentive for investment and economic activity for America to, once again, lead the way to world economic recovery.

But instead...we have this $787 billion stimulus package that is 7 months out, only 5% has been spent, and that mostly on Medicaid and Medicare to the States. This spending will continue to roll out to a good portion of wasteful spending, in low skilled jobs, that are temporary jobs.

Ever hear of the phrase you don't give a man a fish, you teach him to fish?

Well, you don't finance a temporary job and hope that other temporary jobs pop up thereafter. Instead you put into place an environment that enables people to see economic returns if they do invest their money and pull it out of their mattresses.

We can't manufacture stuff as cheaply as the rest of the world, so what are we going to do? Our service industries are extremely expensive because the cost of labor is so high, so what are we going to do about that? We're no longer better educated than the rest of the world, so what are we going to do about that?

Funny how Toyota can manufacture in Tennessee with low skilled, good paying jobs, but Detroit cannot even come close. So this explanation is a misnomer. Unions put a rut into that plan in Detroit.

This aside, we do what we always do, we innovate and stay on the top of the food chain. Microsoft, Cisco, Google, IBM, McDonald's, Nike, Under Armour, you name it, produce more money and higher paying jobs than do the Chinese manufacturers that produce the low paying jobs that build the sneakers. The real value is in designing and marketing the sneakers and that is where the high paying jobs are.

The current economic policies are designed to encourage these low paying, low skilled jobs, and then to do it inefficiently through unionization.

It is utterly backward to moving forward into the modern economy. Low cost labor is a commodity. High cost management talent and sales and design, and invention, and technology, and marketing are not.

Do you want to design and market and sell the car, or work on the assembly line and build the car? Looks like Toyota can do both in the U.S., but GM cannot.

Tinker