I think the problem is that the government doesn’t know HOW to PROPERLY regulate the economy to help spur growth. Sometimes the government just needs to learn when to back off. Cutting taxes isn’t going to do anything anymore. You cant really lower interest rates because they are practically zero as is.
What about letting loose of the arbitrary reins of control the government has hold of. For instance, legalize marijuana. The drug, in of itself, is no worse than tobacco and alcohol. Legalization would do many things. It would open up an entirely new market to legitimate tax paying citizens. It would create thousands of jobs. Portugal has had great success with it. They also saw a substantial decrease in the consumption of hard drugs after they legalized marijuana.
Thats just one example of how we can get the economy going again. We just need to reevaluate why we make certain things illegal or off limits. If there is no good reason for it, then legalize it, tax it, and regulate it. We cant try and create a fake demand like FDR did in the New Deal. We just need to satisfy actual demands.
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Andrew: The issue of marajuana legalization may be one to consider but I believe we have a short-term and long-term structural problem in the country. Too many oung people are not being trained to have the skills necessary to compete in the globally connected, telecommunications oriented society of the 21st century. Why doesn’t the government start a training program, coordinate it through businesses, and teach those who are unemployed a usable skill. We need to significasntly reduce the unemployment rate and training with targeted jobs would help. We can’t keep extending unemployment benefits far into the future without considering the long-term financial and economic consequences.
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Andrew, It would indeed be nice if all or most government regulation was not necessary. It does create a barrier to economic growth. Unfortunately, there are too many bad actors in the corporate world who act out of their own self-interests and not in the moral way Adam Smith conceived of when he put forth the concept of a capitalistic economic system. We need the regulations to insure the public is protected from the Enrons, WorldComs, Madoffs and financial institutions that must be held legally (and morally) accountable for their actions.
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