Fiscal Management and Responsibility: My Letter To Sen. Webb On the Economy
Recently there have been several purposals coming from Nancy Pelosie and the Democratic leadership (to me this is an oxymoron) on another stimulus package for the tax payer. To me in all honesty, a good Democrat this seems like cheap election pandering and does nothing for our financial situation except dig the whole a little deeper. We have such a huge defecit now and to increase it with monies we may need just to pay the interest on our debt, seems to be we are only digging ourselves into a deeper hole. We need to promote growth, but rather than promoting growth in intangible things such as offered by the service industry, we need to build and manufactor our own widgets so growth is based on a tangible product that will not disappear into the thin air created by intangibles, or in simpler terms, nothing.
First thank you for your response on the bailout proposal, I understand and appreciate your views and the final changes.
Recently I have been hearing from Speaker Pelosie and other Democratic Congress members, and Senators about another stimulus package for the population at large. While noble in its intent, it is erroneous and at this point irresponsible in the long term outcome for the economy as a whole and our increasing deficit. We need help yes but not in little checks that only go to truly help enlarge the federal budget, and in the long run up our tab to China.
Instead, use that money to encourage start up manufacturing businesses, not retail but manufacturing. Another suggestion is to start spending that money on infrastructure improvements but with this one difference in programs. Instead of putting out bids to private contractors which always seem to manage to cheat the taxpayer out of 1/3 to 1/2 of the funds with poor performance and workmanship. Isn't it about time to start that federal jobs program with one added bonus, access to the federal health care plans afforded to other civil servants.
This program should be under governmental oversight with a provision that forbids contractors from doing the oversight. Start modeling programs after the New Deal programs and include price gouging provisions. Furthermore, rather then benefits to small businesses that only start up as retail shops or small service industries, put an emphasis on companies that produce something. With the recent powdered milk scare, why can't an American plant open meeting our safety standards, as well as our ability to produce a fine product at a reasonable price? To be included in this which would once again spur new technology efforts would be green iniatives so that new manufacturing did not manufacture more carbon traces that contributed to global warming.
The current economic model we have been following is based on huge inflated pricing, for products we would not have accepted twenty years ago. Companies like Mattel and others export the manufacturing jobs to places we have no quality control over (i.e. lead paint in children’s toys) and the price for the product they receive goes way down yes, but is that decrease passed on to the consumer? No, it isn't, hence you have a huge increase in inflation that is not measured, because there is no visible increase in price, it's hidden. Where there is a more visible impact is the American worker is put out of work and that family's standard of living decreases, and you see a widening gap between rich and poor with members of the middle class being demoted to the lower class.
The other flaw in our economic system is related to the above. Where there is production in this country it is a production of intangibles. Service contracts, financial packages (i.e. the sub prime mortgage bundles traded), or so called management/production audits and training packages, specifically consultants. The problem with this product is that anyone can produce it, and it's so called product is nothing but air that can rapidly vanish. A possible future loss that may have a prolonging effect is that all of these management/consulting firms may have trouble marketing themselves, especially abroad seeing how miserably our industry in this area failed.
In summary, I would urge you and other Democratic leaders in the Senate and Congress to push for a stimulus package that will guarantee returns and products, promotes jobs and develops a degree of independence, pride, and a product that can be exported to off set the current trade imbalance.
Recently I have been hearing from Speaker Pelosie and other Democratic Congress members, and Senators about another stimulus package for the population at large. While noble in its intent, it is erroneous and at this point irresponsible in the long term outcome for the economy as a whole and our increasing deficit. We need help yes but not in little checks that only go to truly help enlarge the federal budget, and in the long run up our tab to China.
Instead, use that money to encourage start up manufacturing businesses, not retail but manufacturing. Another suggestion is to start spending that money on infrastructure improvements but with this one difference in programs. Instead of putting out bids to private contractors which always seem to manage to cheat the taxpayer out of 1/3 to 1/2 of the funds with poor performance and workmanship. Isn't it about time to start that federal jobs program with one added bonus, access to the federal health care plans afforded to other civil servants.
This program should be under governmental oversight with a provision that forbids contractors from doing the oversight. Start modeling programs after the New Deal programs and include price gouging provisions. Furthermore, rather then benefits to small businesses that only start up as retail shops or small service industries, put an emphasis on companies that produce something. With the recent powdered milk scare, why can't an American plant open meeting our safety standards, as well as our ability to produce a fine product at a reasonable price? To be included in this which would once again spur new technology efforts would be green iniatives so that new manufacturing did not manufacture more carbon traces that contributed to global warming.
The current economic model we have been following is based on huge inflated pricing, for products we would not have accepted twenty years ago. Companies like Mattel and others export the manufacturing jobs to places we have no quality control over (i.e. lead paint in children’s toys) and the price for the product they receive goes way down yes, but is that decrease passed on to the consumer? No, it isn't, hence you have a huge increase in inflation that is not measured, because there is no visible increase in price, it's hidden. Where there is a more visible impact is the American worker is put out of work and that family's standard of living decreases, and you see a widening gap between rich and poor with members of the middle class being demoted to the lower class.
The other flaw in our economic system is related to the above. Where there is production in this country it is a production of intangibles. Service contracts, financial packages (i.e. the sub prime mortgage bundles traded), or so called management/production audits and training packages, specifically consultants. The problem with this product is that anyone can produce it, and it's so called product is nothing but air that can rapidly vanish. A possible future loss that may have a prolonging effect is that all of these management/consulting firms may have trouble marketing themselves, especially abroad seeing how miserably our industry in this area failed.
In summary, I would urge you and other Democratic leaders in the Senate and Congress to push for a stimulus package that will guarantee returns and products, promotes jobs and develops a degree of independence, pride, and a product that can be exported to off set the current trade imbalance.
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