What is our biggest economic problem and which one can we address the fastest?

[isle-hawg]

Sort of ignores all the other taxes people do pay, but whatever helps you sleep at night...

So do these taxes that we all pay balance the current budget?

[twa]

making capital available creates jobs, not simply possessing money

Like the healthreform mess just mentioned you are hitting the wrong target...... but he can keep his coverage if he likes it

I'm done with this mess

[SpringfieldSkins]

You have a what's in it for me attitude , and dislike it in employers?

people need a reason to work or to hire

Not at all. My line of reasoning is that if lowering taxes on the rich doesn't give them an incentive to hire then why bother. Maybe we should do the reverse and offer a tax break for people who are out of work that find a job. Seems just as asinine of an incentive to me. Unemployment is the most difficult to solve in my opinion because all of these "job creators" have learned that they can make just as much money with less people. Sure the service that you get sucks but they're still making money.

[HeluCopter29]

That is not our mistakes, that is the GOP talking point. That the wealthy and the job creators are one in the same.

Exactly this. The main GOP talking point has been that we need to protect the rich and keep their tax rates low because those are the ones who are creating jobs. If this is not the case (as you've pointed out it is not) then that argument is flawed.

[Duckus]

Well, based on the poll this is not going to be popular.

Our biggest threat is the misplaced fear and obession on national debt in the short term during recovery.

Screw cuts. We need to be spending more. A lot more. Huge infrastructure, education, training, and jobs programs.

When done recovering we can focus on reducing debt through program cuts, slashing the military, reforming social programs, and tax increased.

[deejaydana]

Well, based on the poll this is not going to be popular.

Our biggest threat is the misplaced fear and obession on national debt in the short term during recovery.

Screw cuts. We need to be spending more. A lot more. Huge infrastructure, education, training, and jobs programs.

When done recovering we can focus on reducing debt through program cuts, slashing the military, reforming social programs, and tax increased.

When I read this post/sentiment I think of Milton Friedman when he was told that "make work" jobs programs were the answer to escaping economic hard times. He was looking at a group of men with shovels working and brilliantly quipped, just use smaller shovels.

[Renegade7]

Biggest economic threat is infrastructure. It's falling apart, and in many cases will directly threaten lives and the national/local economy the longer we ignore it.

Even though investing in our failing infrastructure would be an immediate shot in the arm in creating jobs and demand for American-made construction products, it's not the easiest way to help fix the economy. That would be moving the emphasis of higher education away from expensive-*** 4-year degrees that aren't getting people hired and shifting towards more jobs skill training.

Keep seeing articles about 12 million people out of work, but there's at least 3 million jobs in this country that can't be filled because there aren't enough people with the skill-set. A prime example is high-tech industrial plants that rely heavily on computer-programmed machinery. Hi-Tech industry is the way for us to rebuild our manufacturing base, but there aren't enough people that know how to do it.

Even if we fix the tax code to help keep manufacturing in the US or help bring it back, we still need people to have the education to run these hi-tech factories. This will also help lower the individual debt among individuals getting degrees then turn around and can't get jobs in their field.

But that's just my opinion...

[PeterMP]

When I read this post/sentiment I think of Milton Friedman when he was told that "make work" jobs programs were the answer to escaping economic hard times. He was looking at a group of men with shovels working and brilliantly quipped, just use smaller shovels.

You don't think that the things he listed can have long term economic positive results in terms of growth?

For the people that answered government debt, would we have such a debt if we didn't have a trade deficeit? Would we have a trade defeciet if we consumed less?

What is the horse and what is the cart? Can the cart be more important than the horse?

[deejaydana]

You don't think that the things he listed can have long term economic positive results in terms of growth?

For the people that answered government debt, would we have such a debt if we didn't have a trade deficeit? Would we have a trade defeciet if we consumed less?

What is the horse and what is the cart? Can the cart be more important than the horse?

Of course those things improve efficiency but they don't necessarily make an economy come roaring back and they're also a one time shot on the jobs front. Frankly I think we'd be much better served looking into privatizing education because if this country's proven anything the past 40 or so years, it's the fact that throwing money at education does not improve results. We also don't have "a lot more" money to spend at this point. We're the brokest nation in the world's history.

[PeterMP]

We also don't have "a lot more" money to spend at this point. We're the brokest nation in the world's history.

The global credit market seems to disagree.

Are the markets wrong?

[Duckus]

We also don't have "a lot more" money to spend at this point. We're the brokest nation in the world's history.

Says who? The global markets certainly are not treating us like we are broke.

Long term I agree with reducing the debt. Now is not the time. We have created a false panic.

[twa]

If you're charging less than you can then you aren't a very good businessman... Curious how you go about limiting competition, that seems like it's a successful business model.

But that wasn't the question was it? I'll try again.

As a business owner, you would hire more people to keep up with a greater demand in order to maximize profits, correct?

A good businessman is not predatory imo, but there are certainly those that differ in opinion there.

as to limiting competition, there are numerous ways
http://www.heritage.org/research/rep...nomic-recovery
Fixed Costs
Why would business start-ups fade in a period of booming corporate profits? After all, the last two peaks of corporate profitability were both followed by peaks in start-up job creation in 1998 and 2006. And why are corporate profits so strong when the economy is weak?
A simple explanation is that fixed costs are high.
With new regulations[3] and business requirements in health insurance, small-business finance, environment, energy, and tax compliance,[4] not to mention the ever-expanding reach of state licensure boards,[5] it is expensive to open a business.
High fixed costs and onerous regulation are textbook “barriers to entry.” Incumbent firms favor many of these barriers because they keep competitors out of the market, which keeps profits high. In banking, the stringent regulations of the Dodd–Frank Act not only make it hard for small or start-up banks to survive; they discourage banks from lending to borrowers who do not have a strong track record. Less credit for unknown borrowers means fewer start-up jobs created.

...
A Bad Environment for Jobs
Entrepreneurs have proven their willingness and ability to start new firms and hire new workers in every economic environment. Only since 2007, in a policy environment that puts government first and people second, has their creativity been slowed. Washington should reverse this trend immediately.

[NLC1054]

Of course those things improve efficiency but they don't necessarily make an economy come roaring back and they're also a one time shot on the jobs front. Frankly I think we'd be much better served looking into privatizing education because if this country's proven anything the past 40 or so years, it's the fact that throwing money at education does not improve results. We also don't have "a lot more" money to spend at this point. We're the brokest nation in the world's history.

Privatizing education is a great way to make sure less people are educated and poorer parts of the country are left in the dark. It'd create a macro problem of the issue with education we have now; the richest counties in the country get the best education, the poorer counties get worse education, and no one actually learns anything that helps them in their adult lives.

The problem with education isn't that we keep throwing money at it, the problem is that we keep investing in standardized testing and cruddy teacher evaluation instead of making schools more skill oriented.

---------- Post added October-6th-2012 at 10:44 PM ----------

...You know, my ex-stepdad actually works at the Heritage Foundation. I worked a couple days in the mailroom at the Heritage Foundation.


I learned pretty quickly that everything the Heritage Foundation puts out is bull****.

[HeluCopter29]

A good businessman is not predatory imo, but there are certainly those that differ in opinion there.

as to limiting competition, there are numerous ways
http://www.heritage.org/research/rep...nomic-recovery
Fixed Costs
Why would business start-ups fade in a period of booming corporate profits? After all, the last two peaks of corporate profitability were both followed by peaks in start-up job creation in 1998 and 2006. And why are corporate profits so strong when the economy is weak?
A simple explanation is that fixed costs are high.
With new regulations[3] and business requirements in health insurance, small-business finance, environment, energy, and tax compliance,[4] not to mention the ever-expanding reach of state licensure boards,[5] it is expensive to open a business.
High fixed costs and onerous regulation are textbook “barriers to entry.” Incumbent firms favor many of these barriers because they keep competitors out of the market, which keeps profits high. In banking, the stringent regulations of the Dodd–Frank Act not only make it hard for small or start-up banks to survive; they discourage banks from lending to borrowers who do not have a strong track record. Less credit for unknown borrowers means fewer start-up jobs created.

...
A Bad Environment for Jobs
Entrepreneurs have proven their willingness and ability to start new firms and hire new workers in every economic environment. Only since 2007, in a policy environment that puts government first and people second, has their creativity been slowed. Washington should reverse this trend immediately.

So let me ask you this. If corporations are doing extremely well but start up companies aren't, do you think it would be fair to outline different rules for each?

[GSF]

unemployment
you can address it by the regulatory system

we have created a atmosphere that does not encourage hiring and blame the businesses

Unemployment isn't an economic problem, it's a result of a bad economy. I know you love to blame the economy on Obama's over-regulation, but unemployment began to skyrocket before Obama took office. Bush otoh of course was a big fan of deregulation which is 1 part of the reason we are in this mess.

Over-regulation is a problem in th US, but it sure as hell isn't our biggest problem right now. There are no easy fixes right now, contrary what Romney and co want us all to believe.