(The speech I wish Obama would give on Thursday)
Good Evening fellow Americans,
Today we find ourselves in a situation that took decades and several presidents to make. From Ronald Reagan, who tripled the deficit during his term, to George H.W. Bush and Bill Clinton who presided over the death of the Glass-Steagall Act that placed a firewall between commercial banks and investment banks, and The Bank Holding Act of 1956 that put restrictions on bank holding companies, to George W. Bush who took an $86,422 Million budget surplus and, by 2008, turned it into a $450,945 Million deficit, with two ongoing wars whose costs were kept off-budget. There is blame enough to go around.
During the past 3 years, almost every initiative that either the president or Democrats have placed for consideration has been blocked, usually by Senate filibuster, by Republican Senators , whose leader has publically stated, several times, on the record, that his main agenda is to make this president a single term president, and has led his party in a systematic obstruction of any legislation that even seems a ‘victory’ or ‘accomplishment’ for this administration. This has resulted in precious little being accomplished.
For the security and health of this nation, for the welfare of it’s citizens, this needs to stop.
While petty games are being played, people are losing homes, losing jobs, scraping for funds to get food and medicines. Schools are crumbling and cutting essential studies. Bridges are falling and killing people. Businesses are stagnating, especially our small businesses that depend on local conditions being able to support them. Roads and infrastructure is old and failing.
Do we actually think that continuing on this way will preserve this nation?
All that has been loudly debated so far, seem to be directed at the symptom, not the cause.
Lower taxes won’t put people to work. They could drop to zero and not one person would be hired. Relaxing regulations won’t put people to work. They could disappear and very few would be hired.
A review of Business 100 would seem to be in order.
People go into business for ONLY one reason, and that is to make a profit. In order for a profit to be made, there needs to be DEMAND for what you intend to sell. If there is no demand, there is no reason to hire anyone, including yourself.
If there is demand, you start the business, usually by yourself, until you either meet the demand, or you run out of time. If you run out of time, you usually hire another person. If there still is demand to be filled, you continue to hire until you start to see people with free time, then fire or hire according to DEMAND.
Right now, there is a gigantic lack of demand here, and in the world. There are three segments that create demand, consumers, business, and government.
The U.S. is basically a consumer driven economy. It’s dependent on consumers, you and me, to have spare cash available after meeting our bills, to buy stuff. Due to past events, consumers don’t have spare cash to create demand. We need to look elsewhere.
Businesses. Problem here is that, being a consumer driven economy, if consumers can’t demand more, business won’t hire if their current workers are meeting the demand out there. If business isn’t producing more to meet consumer demand, business can’t increase it’s demand either.
That leaves government.
Yes, I realize that we need to reduce the federal debt, but that can’t be done overnight. It’s a gradual, long-term process.
Yes, I realize that anything government does to create demand will increase the debt. But as I stated, reducing taxes on those that don’t need it, doesn’t create demand. They are already spending what they will spend.
What is needed is a large, short-term boost, say over the next 2-4 years.
What I’m putting forth is an infrastructure bill that immediately greenlights all infrastructure repair requests. It takes bridges that have B ratings and below and greenlights repair or replacements. It gives cities funds to replace infrastructure over 30 years old, burying utilities such as electric, phone and cable, and separating sewers from storm drains for urban flood control. It provides funds for needed grade separations of rail and road.
As each project is approved, enough funds to see it to completion is placed in an account to fund that project. Any overruns will be the responsibility of states and cities.
There is $20 billion per state for rehiring first responders and fully funding education, from pre-school thru college to at least 40%.
School buildings over 25 years old will be funded for replacement in order to have all schools wired for the 21st century and able to provide a comfortable learning environment. This means proper heating and air conditioning as well as phys ed areas.
The Bush tax cuts will be repealed and four added tax levels will be added.
$250,000 – $1 million….37%
$1 million – $10 million….43%
$10 million $100 million….46%
$100 million +…. 48%
Capital gains tax will vanish and ALL investment income will be treated as basic income.
The Social Security tax cap will be done away with.
Discussions on decreasing the long-term debt will start.
I know those that opposed my initiatives in the past will be loud and strident about this as well. This is expected. I will insist that all of this be approved and that it lasts for 3 years with a trigger for a 4th year if unemployment is over 6%.
Let the nation see who is really working for the good of the nation and who is held in thrall of their corporate masters, working only to fill the coffers of the rich at the expense of the nation and it’s people.
Demand is what is needed to get people to work and our nation moving. Interest rates are low so now is the time to do this. And it is not just our nation that will be helped. Our expanding demand will spread through the world’s economies and ease their problems as well.
By doing this big thing, we not only raise ourselves, but all. This is a big problem. It needs a big solution. This is my solution and it will work.
The problem is a lack of demand. This creates demand by rebuilding and improving our nation, making it better able to compete in this world economy.
Thank you. God bless you and God bless the United States of America.
(Ah….if only)
Sidelined Buddah 