Critic and Solution For US Economy

Discussion in 'Economy' started by antoderman, May 6, 2010.

  1. antoderman
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    antoderman Rookie

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    The US economy as the biggest single nation economy in the world is now in serious problems. The problem is the market uncertainty to follow the ambiguity of the government policies. The policies of the government in public economic sector is so irrelevant to help the people of america whose are the one of biggest public economy and the biggest public consumption in the world. And the policies made by the government of USA are not reflect the tendency to support or even protect the main identity of USA economy.

    It can be said that the government now is practicing a wrong socialist or wrong economy democracy system. The system of economy is for the people of America. And the people of USA is commmonly structured from the public economy and consumer sector. The economic crises that had been hitten USA from the 2007 until now is because the wrong policies from the government itself. The Glass-Steagal act which prohibit the banks from practicing high risk financial instrument had been repelled successfully. This policy produced a very serious weak regulation in the USA itself. And thanks to the Fed, by the support of the low rate policy for years in America it created a ultra big volcano in USA economy and it has erupted from 2007 until now.

    And what is the support for the public sector and the consumer sector in the USA. The government take over so much financial industries thanks to the govermnment and the fed faults themselves. The financial industries who make faults thanks to the repelled Glass-Steagal are now declared very guilty by Obama. And the leader of the financial industries were made shameful in the us and international because of the weak financial regulation thanks once more repelled Glass-Steagal and the low rate fed policy for years.

    And next thing what Obama do is the worst thing the economist have ever seen in the world. A policies which be able to increase the debt to gdp ratio of USA to 110% in five years. A very wrong policy in the midst of crises of high laden debt of governemt, crises in public and consumer sector. I think it is so irrelevant for the government to make a very big spending in the condition the the us deficits and debt is in the top priority of restructuring. Make a big government spending in USA I think would not interfere a lot because US economy has run independently in a system indepently for a long time. And if we look at the ratio of public spending with the government spending I think it would be very wise if we increase the public spending which are structured in public sector and consumer sector.

    And with the issue of the VAT system to pay for US debt is the end of US economy. VAT system would be very seriusly impact the consumer sector. This stupid economy policy will make the consumer spending which are the biggest power of USA economy in a very serius threat. The little government spending in gdp is so overdose, make deficits and raise debts. And the government very seriously can not sacrifice the consumer spending for the ego or ambition of the government itself. This is even not a socialist. A good socialist of course does not spoil the society with the high ambisious unseful policy for todays economy. A good socialist is trying to make the society more independently or autonomous for the good of the society itself. And this even not a democracy. A democracy system would place the people interests in the first place. And the people interest of the USA is in the public and consumer sector. And the democracy system must place this in the first place and not sacrifice the people of america interest for the ambitious unuseful policy for todays economy.

    But there is a good sign of US economy. Thanks to Paul Volcker there is a policy to regulate the financial instution once more after Glass-Steagal act. The policy will increase watchdog in financial industry and the financial products which are offered to the people. I think this is a very good policy and should be placed in the first place among the policies which have been made by the government.

    I don't agree if the people of America who have work so hardly in todays economy to raise their income then be forced to pay higher tax in their income. And I even can not agree if the consumer sector which is the backbone of the US economy forced to sacrifice themselves to something wrong they don't do. The consumers are even the victims of this recessions especially in the housing sector. The consumers have been sacrificed a lot in this recession and we can not push the wrong to them by make the VAT for the consumer sector. It is a very wrong action to save the economy. The consumer have to be protected and even supported by the government.

    The government have to support public sector from the Small and Medium Enterprises until wealthiest financial instution. The government have to make incentives and reduce tax for this public sector so that the revenue from this sector could be reuse to make investment and absorb manpower as much as possible. It is better than make ambitious and spendthrift government spending which are no goodness in todays economy.

    The people of USA needed support and we can support them by reduce the ambitious and spendthrift government spending in todays economy and allocate them into make incentives and reduce tax for the public sector frim the Small and Medium Enterprises until wealthiest financial institution. And the consumer sector have to pe protected and even supported. We even can not blame the victimized consumer in todays economy by make the VAT. It is absolutely a very wrong way.

    We have to stand together to raise independency once more in USA by support the public and consumer sector - the biggest economy sector and to establish the good and right democracy for the goodness of USA people.
     
    Last edited: May 6, 2010
  2. antoderman
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    I dedicated this article for Sri Mulyani a great economic hero from Indonesia. She has been fighting for years not for herself but for her beloved people and beloved country. But shameful politics kill her character in her own country.

    I wish the best for Sri Mulyani and I hope she will be a great hero for the world in her career.
     
  3. antoderman
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    Obama plans for ultra deficit budget in health reforms, etc make the government have to choose : printing more much money which will raise inflation or raise tax which could bring us into nothing but socialist (unknown us).

    I think Obama will choose print more much money and sell them as bond to China and an option to raise tax or even make VAT into reality.

    Anyway, I mention us print more money here is the deficit of government that make the government print more much money and sold them as bonds to bond investor. It is more dangerous than todays very low rate fed policy (money printer too) thanks to the high laden debt Obama plans.
     
    Last edited: May 9, 2010

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