How to fix the U.S Economy

Before I say a single word regarding economic policy, allow me to get a few things out on the table.  I am not a professor of economics, presidential candidate, or Wall Street analyst.  In fact, part of the reason I choose Marketing as a career is because Cost Accounting was boring and tough in college.

That said, I have a couple of thoughts on how our country can dig ourselves out of the current recession (that's right GW, it's time to come clean about the cold hard facts: the U.S. Economy is in a recession or a downward period in the cycle.)  

Issue #1

We must, I repeat must, do whatever it takes to drastically reduce and eventually eliminate deficit spending in Washington.  Ronald Reagan was a great leader, but he majored in economics from Eureka College.  Ever heard of it?  Me neither.  The point is, he came up with the idea that our country could spend its way out of a recession.  Not true. 

Instead we have managed to rack up the largest debt in U.S. history (and consequently devaluing the dollar for decades to come.)  As of March 2008, federal debt in the U.S hit $9.4 Trillion.  Congrats to us!  Our grandchildren's dollar should be worth about a quarter.

Issue #2

Personal debt.  While I'm on the issue of federal budget deficit, I should perhaps bring this issue to a more local level.  Namely, you and me.  We have contributed to, indeed created, the burgeoning debt crisis in this country.  In fact, we need the help of every American to reverse this trend.

Every time you or I spend just a little beyond our means and "cover it" by delaying the payments on our favorite piece of plastic we are elevating the problem.  In fact, another way to look at it is that our country has one giant credit card and one day our financiers (Japan, China, Middle East, and others) are going to want to collect. Either that or they're going to cut us off from the global cookie jar, forcing us into a depression.

Issue #3

Without getting into to a political debate, I think the third issue our country needs to address in order to fix the economy is Iraq.  Not just the war efforts, but the rebuilding of the entire country's infrastructure.   We are just now beginning to understand what Colin Powell meant when he said "We broke it, we bought it."  

And boy are we ever "buying" it at $200 Million dollars a day!   This year we surpassed the $1 Trillion mark and some have even estimated that we'll be close to $2 Trillion within the next year!  We must greatly reduce that level of spending or get used to the thought of our current recession lasting much longer than it should.  Enough said.

My Conclusion:

Good luck with whoever we place in the White House in 2009.  I sure hope they're bright and also know how to exercise a good dose of common sense.  In the meantime, the other 300 Million of us need to stop, I repeat STOP, spending more than we have in our wallets.

Please, do your part to help.