How do we fix the economy?
Answer:
The economy isn't doing all that poorly. The Clinton years were the result of a huge increase in productivity due to advances in computers and the internet itself.
What could help us would be to
1. Balance the budget deficit (Borrow less)
2. Fix the health-care system (To make the system simpler while keeping it private would be better for the economy. Public systems helped stifle economic growth in Europe for a long time)
3. Have a simpler and fairer tax code.
4. Build smaller homes in denser communities so that money and time aren't destroyed by long commutes. This money will eventually get invested back into the economy in places other than gas and cars where it will be more productive.
By the way in the 20s the economy was on the verge of disaster, it was booming mostly because of speculation. The 20s helped to create the Great Depression in the 30s.
get rid of bush...
Well the economy is doing fine. It can't get much better than it is right now. Unemployment is low, investment is high and America's output is on par. Aside from the massive budget deficit (which can crowd out investments) things are great.
I think it the fact that the economy is being overshadowed by the European and Chinese markets and the dollar has weaken that people think that the economy is going south. It's still doing fine.
This question implies two things that are clearly wrong. The first is that during the Clinton years we had a great economy. The second is that things need to be fixed.
Don't remember any stock crashes towards the end of the 20th century? How about the recession that started in Clinton's last term? Things were made even worse by the 9/11 attacks.
As for how we are doing since, we couldn't ask for a lot more. The Dow has been hovering around all time highs lately, employment is incredibly low (4.5%) and we have inflation below 2%. I would not be surprised if we see the Fed drop interest rates in the next six months to one year.
In the long run, you really do not want a "smokin' hot economy" all the time. Growth that is not sustainable leads to economic recession or worse. What is better is a more moderate growth rate, which we are currently headed for.
The main thing that can help us in the near future would be to get the deficit under control (by reducing entitlements, not increasing revenue) and make sure that we don't have any tax increases.
people are better at making their own decisions rather than the government making them for them. The government needs to become less beaurocratic by dismantling entitlement programs and cutting spending drastically. This will help our economy greatly. Energy independence can also greatly benefit our economy with a positive supply shock, although ethanol is clearly not the answer yet.
If anyone could answer this question, they'd win the Nobel Prize for economics.
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