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  • What Should Congress Do to Help the Economy?

    Following the testimony this morning of Federal Reserve Chairman Ben Bernanke, the House Budget Committee turned to three economists for their recommendations. Bill Beach, director of Heritage’s Center for Data Analysis, outlined his views on crafting a long-term, pro-growth economic policy. Here’s video of his opening statement:

    [youtube]http://www.youtube.com/watch?v=LIfVkAL55ck[/youtube]

    Posted in Scribe [slideshow_deploy]

    6 Responses to What Should Congress Do to Help the Economy?

    1. Austin, Provo, UT says:

      As an undergraduate in economics, this video is fantastic. This is what Congress should do to help spur the economy, AT ANY POINT IN TIME, let alone during this financial crisis.

      The Heritage Foundation is truly a wonderful organization, promoting the principles that spur economic growth to raise the standard of living in our nation. I'm tempted, only slightly, to get a Ph.D. in Economics, then help join your cause!

    2. Bruce David, Queen C says:

      Bruce’s Instant Stimulus Package

      The economy is fueled by consumers but as Wall Street exported most middle class jobs; burger flippers can't afford $40,000 cars…

      1. Revamp the tax system whereby the 1st $25,000 of income of individual taxpayers is exempt from any kind of taxes, state or federal. People need every cent to survive and this would provide an instant ‘raise’ which would help the economy. After $25K, a flat rate of 12% and all non-profits, foreign corporations, domestic corporations would have to pay 12% if they’re doing business in the US.

      2. The government would begin selling off unused assets, especially land and buildings. A modern version of the homestead act would take place whereby average citizens would have 1st dibs on small plots of land, homes and buildings. Speculators and investors would be next.

      3. I would initiate an immediate across the board 10% pay cut for all federal politicians and cabinet holders. Government workers would have fewer federal days off and would have to contribute at least 25% of their pay toward health benefits.

      4. Immediate tort reform – no more stupid lawsuits. If you file a frivolous lawsuit and lose, you pay the legal expenses for all.

      5. A national health insurance plan, covering at least the basics, would be funded via an additional premium on auto and/or home owners insurance based on a sliding scale. This would create a very large pool of health subscribers and keep costs down.

      6. Massive cuts in military operations overseas. We don’t need soldiers stationed in 140 countries.

      7. Like the Manhattan Project of WWII, the government would devote significant resources to putting people back to work in decent jobs by way of making the US energy independent…jobs in creating a national rail service, energy alternatives and rebuilding of our infrastructure (perhaps like the CCC of the Depression era) would be implemented.

      8. For a 10-year period, I’d suspend Congress. Eliminate their high pay and perks. The governors from each state would be used; appointing non-partisan representatives to help with decision-making.

      9. I would decriminalize marijuana. We spend too much money incarcerating people for a non-narcotic weed and despite government propaganda, it’s never been proven to lead to hard drug use. Its sale would be regulated and taxed, adding more revenue while decreasing expenses on law enforcement and prisons.

      10. Finally, my mother would become the National Budget Manager…as a Depression-era woman, she knows how to squeeze a dollar from a dime!

    3. Pingback: What Should Congress Do to Help the Economy?

    4. Tom Minneapolis says:

      Securitize the Banking industry bad loans! Creating a new good class of asset/equity for the banks and economy

      The government should not give out stimlus checks or buy Bad Loans ! Free market is what I believe in, goverment should step in to slowly let the air out of this deal so it doesn’t pop..but ultimately market needs to suck it up

      Alternative:

      Give institutions 30 days to identify a class of “bad Loans” The govt will guarantee these loans ( to a certain level) the govt guarantee provides an asset that can be borrowed against, at a great rate. Liquidity is provided to the system . The loan is still the institutions problems and they will work to limit their losses. Basically letting the institution “Finance” its loss over a longer time period.
      Bankers don’t want this because they want a clean slate so they are heros next year and will get a bonus. This way they will basically be breking even for some time until they suck up their losses
      Benefits:
      -Regulators look at this asset as now good ,boosting the stability of te bank
      -Cheaper money for bank to earn back the losses
      -For mortgages that they put in the group BANK must convert to FIXED at low rate ( why not US govt guarantees it ( With no Fees to owner..maybe a little put on the mortgage)
      -Management won’t get their bonuses until losses sucked up
      -Sorry but the investors in the institutions lose out ( but the reality is that their institution was sunk anyway if it survives..they actually may get something
      -Govt guaranteed loans “Trump” other securred creditors. ALL bank assets go to fix the problems no selling off he good stuff at bargain basemen prices

      So What’s wrong with this proposal

    5. Spencer, North Carol says:

      I think the goverment needs to take a look at making some changes taht can get us out of the crisis, such as temporarily suspending mark to market accounting, which is causing a lot of this mess. http://democracy-inaction.blogspot.com/

    6. Pingback: The Rise and Fall of the American Empire |

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