Michael Summerfield

No Fundamental Fiscal Change

Rut

How's Business

Until the Obama administration recognizes that the Fed has done all it can with monetary policy and that initiatives in fiscal policy are now required, we are in a rut. That doesn't mean we need to extend tax cuts for the rich or provide more additonal stimulus to for public works! It means we need to provide incentives for new business formation, research and development and retrain housing and construction workers in skills in other fields [the housing market will take a long time to recover]. The government needs to reduce military spending [see Cato Institute study], commit to energy independence at all costs and provide real tort reform to lower healthcare costs. Abandon the Federal pension program and move to 401k contributions, drop Congress’ health care and pension plans so they are on par with the rest of America. To help the consumer dig out of the hole, bring back tax deductions for credit card debt [along with a sunset clause] since financial firms won’t provide a break for their 29.9% rates though they are paying only 0.25% funding cost and give a tax break to those who cannot refinance their mortgages due to credit issues. We’ve bailed out Wall Street – but how about us consumers? Until we are healthy, this economy is going nowhere and we have been all but ignored!

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