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Ways the Next President Can Fix the Economy

with one comment

Many talking heads have said that the economy will be a major issue this election cycle. When electing a President–in my book–the economy should always be a big issue. James Pethokoukis, writing at his Capital Commerce blog, notes a Time magazine article prescribing what the next President should do to fix the economy. He summarized the Time article (by Justin Fox) saying:

Insecure Americans want higher taxes and more regulation. Government should spend more on infrastructure to combat income inequality. Get rid of the Bush tax cuts even if it weakens the economy. Raise energy taxes. Increase regulation on Wall Street. Nationalize healthcare, pretty much.

Then he adds five ideas of his own, which he thinks are more agreeable to the free-market liberals and conservatives:

  1. Eliminate corporate income taxes, especially if you are also going to hit companies with all these energy taxes.
  2. Get companies out of the business of providing healthcare benefits.
  3. Index Social Security benefits to inflation, and extend the retirement age, allowing a big cut in payroll taxes for the middle class.
  4. Create government-funded “innovation prizes” for key technology challenges.
  5. Give universities incentives to create more science geeks, and offer grad students free-floating fellowships to choose whatever field they see as the best market match for their skills.

The key thing that all free-market folk will agree with is maintaining American competitiveness. This idea is not new to this cycle and is well publicized through books such as Thomas Friedman’s The World Is Flat. As developed nations continue to move towards service-based economies, it is important that the U.S. government do whatever it can to foster the development of ideas, intelligence and technologies that are of high value in the global market. A government that impedes the development of those and fosters Americans’ satisfaction with their status quo will bring about the downfall of the country as a world market leader.

Do readers have any suggestions other than the ones given by Mr. Pethokoukis? I would support a fair tax, but in light of the current political situation, that is basically impossible. Some simplification of individual taxes would be helpful to all, though.


Written by walonline

May 19, 2008 at 12:13 pm

One Response

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  1. […] So, without further delay, here is the comment from “Vincent” regarding the post “Ways the Next President Can Fix the Economy“: increase the retirement age??? are you nuts??? when I will be able to enjoy the steak I […]

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