The only way out of our fiscal hole may be to make more money…

January 4, 2013

With our aversion to raising taxes or cutting government spending there seems only one way out of our fiscal hole. Make more money.

I don’t mean roll the government printing presses.

What I mean is get more productive. I have written it and so have so have many others, but we must get the United States of America producing things in more quantity — real things that people need or even think that they need.

If there are barriers to starting or expanding business then they need to be removed. And I know that is the tricky part. Certainly I am not talking about removing reasonable health and safety and environmental  regulations. And tax breaks are problematic because they end up being tax shifts to someone else. Also I suspect tax breaks are often given out unwisely due to political pressure (lobbying). But in some cases tax breaks as an incentive might be appropriate.

One phenomenon we are facing within this context is mechanization and technological advances that are destroying jobs. That is probably inevitable but then again, if there was a labor force to handle things there in many cases would not be quite the incentive to do away with many jobs. Of course a whole host of jobs are gone forever too.

Why don’t we produce more textiles in this nation? We used to have a strong textile industry. We certainly have the resources for the raw product, such as cotton.

I presume the answer is cheap labor offered by other countries where the standard of living is lower than ours.

While we don’t want to bring down our own standard of living it would seem that it would make sense to find a way to offer employment to so many who are chronically unemployed. I don’t mean grab people off the street and put them at a sewing machine. But if work was the only way to get by, many people would opt for gainful employment.

The way it is now, what with unemployment payments and perhaps sometimes too liberal disability awards and the much-abused Aid to Families with Dependent Children (AFDC) siphoned off by adults, there is a large and I think ever-growing population of idle people.

And there is a large population of quite willing to work and talented able people for which there does not seem to be employment or at least adequate employment.

We need industry and we need to find a way to limit the restrictions on it to those that are really necessary and we need to cut the red tape.

Unemployment insurance and disability insurance are a must for a stable society, and certainly we do not want any children to go hungry (no matter the reason). And we don’t want to lower our standard of living. But we have to do something or we will go broke for real.

Sometimes prudent families take stock and figure out what lifestyle is acceptable to them and then they realize that the only way to pay for it is to — make more money. I think that is where we are as a nation.