How to Turn Around the US Economy

[Prosperity]

I would like to know what your thoughts are on teh US Economy and what you think will help turn it around....?

I beleive that bringing back American Innovation and the US Small Business Entrepreneur is the solution.

[SendBlast]

Obama wont let that happen

[JohnGalt]

Redesigning the K-12 education system to regain our human capital advantage and offering more tax incentives to encourage entrepreneurship and innovation.

[Anca]

Managers have to do their best to increase employee productivity and reduce unnecessary costs.

[ExecPro]

I would like to know what your thoughts are on teh US Economy and what you think will help turn it around....?

I beleive that bringing back American Innovation and the US Small Business Entrepreneur is the solution.

Your solution is rather vague.

American innovation and the small business entrepreneur hasn't disappeared, I'm not sure what you are referring by your comment. Would you care to explain what you mean?

Perhaps you should provide more than a one sentence response to an extremely complex question, rather than a generic "solution".

The economy cycles, recession is a natural part of that cycle. It is not good, but it is unavoidable.

Remember, the economy didn't "break" because it was missing 2 trillion dollars, it was broke because of a multitude of reasons that formed an apex. The housing market played a big part, people were foolish with their money (eyes bigger than their checkbooks), and financial institutions were to arrogant to say NO to them.

It's actually amazing that something so simple (subprime loans & credit default swaps) were able to cause so much havoc. Initially, I didn't think to much of the situation until I check my 401 (K) and saw the large hit I took. I didn't have a subprime loan, no home equity loans, I live in a home I can afford, drive cars that I can afford, yet because of a bunch of idiots, I took a $15,000 hit in a matter of days.

So, in my opinion, to fix the economy, we need to first fix what broke it. That being 1) Not over-loaning (my own term) perspective homeowners, 2) STOP GIVING LOANS to people who don't qualify (this was a big problem and the reason it started is extremely complex, yet very simple).

After you fix that issue, you can move into other areas, but it is an endless discussing and I could never address everything.

*Remember, this is not just an American issue. This is a global recession. Iceland was nearly bankrupt, but got a loan from the IMF. England, Indonesia, Russia, Japan, India, China, and France are all facing the same issues as we are.

[chuff1026]

ok
first of all, let me say that other economies were hit harder by buying the securities created through that horrible time
but as for the US economy
the country has to get out of debt
we say that we should stop lending to people who cannot or wont pay but the US as a country borrowed money that we will never repay
they will fix that by getting rid of the dollar
ok
i know many people are going to call me crazy
and thats ok
but are we gonna repay China?
lol
i doubt that
bankruptcy and defaults are built into the system as well..all the money we use are based in debt..thats teh bottom line...once that isnt fixed, we will keep running into this cycle
i think we simply need to position ourselves as individuals and stop looking for answers from the people who caused the problem

[BusinessAdviser]

It's all cyclical. How to turn it around? Sit back and watch.

[The Stealthy One]

It's all cyclical. How to turn it around? Sit back and watch.

Really? Perhaps if our government did not insist on constantly manipulating our currency in circulation and debasing its value, we wouldn't know what a cycle is.

[BusinessAdviser]

Really? Perhaps if our government did not insist on constantly manipulating our currency in circulation and debasing its value, we wouldn't know what a cycle is.

Yes we would. Even in a completely free market, cycles happen. Look at what happens during Christmas. It's cyclical. The government manipulating it is a big problem, but that's not the cause of the cyclical nature.

[The Stealthy One]

I respectfully disagree.

[millionaire]

what ever happen surround you, the simple answer for financial problem may be, creating new opportunity!

[jonathanfigaro]

I dont think it matters. Because you can become rich in any economy!

[pboychuk]

Well according to my calculations if the government keeps taking all my money, ill be broke and wont go out buying new suburbans and HDTVs, so hopefully that gives some insight

[Ruman]

I believe with Galt in that a revamping of our education system is in order. We teach very little to no financial literacy. I took one or two classes in high school(graduated in '03) on money and financial literacy. They were HORRIBLE. People do not realize how damaging spending a fortune on a new car, financing furniture in a house(electronics or otherwise), etc is to your financial situation.

Paying $300 extra per month on a $1000 mortgage will take your 30 yr mortgage down to 15 yrs and save you ~$80,000 in interest. Buying a $15k car every 5 years, selling it for $5k and buying another $15k car, etc. for 15 years will cost you upwards of $36k over 15 years, for a net loss of $116,000 in 15 years, or almost $8,000 per year, $666/mo, or $300 every paycheck, for having a nicer car instead of paying on your house.

Of course, thats using $300/mo, which can be low for many people for a car payment, and also doesn't include insurance differences for the nicer car. Take this times 2 cars + 1 toy for a normal family, makes perfect sense why we are in the economic climate we are in.

[Bugman]

The best way to promote economic growth is to not tax the dog out of everyone. Of course when spending goes up by a few trillion dollars without any known exit strategy the default exit strategy for that kind of spending is to tax the last breath out of everyone which causes economic downturn.