The current state of affairs in the USA affirms the premise that good government is a prerequisite for a good economy. Since we have so many corrupt people at all levels of Government, we have a very bad economy in which corruption thrives. To truly prosper, industry and entrepreneurship require a peaceful, well functioning economic infrastructure. While entrepreneurship propels economic growth, the economic infrastructure for such growth must be provided by government. Economic growth and prosperity raise the standard of living. Good government provides quality of life in the form of public safety, a clean environment, and a well designed and well maintained infrastructure. Above all government must be the referee that makes sure the game of economic activity is being played fairly. Without the rule of law the bad apples among us gain the upper hand and nothing good happens. Governments creating laws and regulations that benefit special interests and monopolies is the costliest form of corruption because it has a severe negative impact on the economy. The bad apples among us have bought a large number of legislators that are ordered to create laws that give unfair advantage to monopolies owned and operated by the bad apples. We must undo the corrupt laws that are giving unfair advantage to special interests and we must prevent as much as possible any future attempts at corruption.
Many people have come to believe that less than 0.1% of people among us have near total control of our economy. They are most likely correct in that belief. These less than 0.1% have purchased for themselves the best governments that money can buy. They are primarely the special financial interests that spend many billions of dollars per year on lobbying all the members of Congress and the White House to get legislation passed that gives them the laws and regulations that enable them to legally steal billions, even trillions, from the 99.9% of all the rest of us. The yearly budget (2011) for lobbying Congress and the various Government Agencies and The White House amount to $80 billion dollars. The total money spent on lobbying all State and Local Governments is thought to be an even larger amount of money.
Read about "Lobbying in the United States" http://en.wikipedia.org/wiki/Lobbying_in_the_United_States
Breakthrough ideas in economics that will curb this gross corruption
Economies throughout human history have always gone through boom and bust cycles because they have never had the benefit of simple and reliable formulas with which to guide and finetune economies toward predictable and ever increasing levels of prosperity without boom and bust cycles.
The lack of clear and simple to understand economic guidelines have allowed the rulers of most economies throughout history to keep the people ignorant and confused. That is why they were, and still are today, able to steal the people blind. Yes, these 0.1% of people among us are stealing us blind. They do their theft quite legally because with lobbying the members of the governing bodies and the bureaucrats in charge of the government departments, they have created the laws and regulations they need to steal from all of us, legally. We know that it is going on and we feel it in our wallets, and we do not know how to stop them. But now finally, these here new ideas on economics will give us the tools to stop some of this legal theft and corruption. It must be an ongoing effort to curb corruption to a minimum. A whole army of the 0.1% rotten apples among us is constantly creating new clever ways to steal and bribe and creaming billions, actually trillions, from the national economies of most countries. The most effective way to curb the corruption is to limit the power of governments at all levels to the building and strengthening of the economic infrastructure. Creating of more freedom for the production of products and services and limiting government's power to an absolute minimum. The less power government has, the less of this power the corrupt politicians can "sell" to the highest bidders.
The first of these ideas will end any resession in record time and prevent any new recessions to ever develop in the first place.
Our present day rulers have done a fine job by making economics appear so complicated that a normal person does not even want to learn anything about economics. Most people are convinced that economics are far too complicated for them to ever understand anything about it. Wake up people, good economics is easy to understand and bad economics is deliberately made very complicated by the bad apples to keep the 99.99% of us from getting wise on them.
Lately there is hope. Currently in the last two decades with the vast increase in the spread of information through the Internet and social media, a small percentage of the people in several modern countries, have slowly become aware that they are being stolen blind by the people that rule their economies. This small enlightened group of people knows that the 99.99% of the population is being plundered by what they call the 0.01%. They are of course very frustarted because they are totally aware of the fact that they do not have the power and political influence to do anything about all this corruption by the 0.01%. The 0.01% pays for and owns the best government money can buy and controls most of the media and has bought the Congress. They control everything else they can buy with their check books. Governments are slowly gaining control of the Internet as well, but if the 99.99% can be made aware quickly enough, the 99.99% can prevent the 0.01% from gaining complete control of the Internet. Let's be vigilant and keep the internet out of the control of the 0.01%. If the bad apples get complete control of the internet we are enslaved to the 0.01% bad apples forever. So, let's be vigilant.
It is totally impossible to fight the corrupt politicians and government officials that sell their votes and government services to the highest special interest bidders. The only way to get rid of them is to eliminate their power base. Do not be fooled by the seeming simplicity of this solution that will bring any economy swiftly out of recession and back toward a booming very well running economy within just a few months. Shift your brain in high gear and do some very anlytical thinking about this proposal. Unintelligent people dismiss new ideas or hypotheses when the ideas differ with their current beliefs. That is of course the dumbest way to evaluate new ideas. New ideas MUST DIFFER from what people and so called "experts" (economists) currently believe. If they would NOT differ from what is currently believed and held to be the truth, they would not be new ideas. So it borders on total insanity to dismiss new ideas by attacking them on the premise that they could not be valid or useful if they differ from what currently is believed by the "experts", many of whom are in the employ of the bad apples.
What happens right at the beginning of any recession?
No matter what the real initial cause is of any recession (housing bubble, banking crisis or any of other scapegoat reasons), as a result of whatever cause is identified, any recession always starts with a decline in consumption of goods and services. That initial drop in consumption of goods and services will create a spiraling down of successive downward spirals of alternating rounds of an increase in unemployment and a decrease in consumption of goods and services. The drop in consumption of goods and services is the sum of both the decline in consumer spending plus government spending on goods and services. If total consumption of goods and services (consumers and governments) drops for example by 20%, then the average money receipts by all businesses that sell goods and services will decline by 20%. Many businesses whose gross receipts decline by 20% cannot meet their overhead expenses any longer and must close their doors. The businesses that must close their doors will create unemployment and many remaining businesses have to reduce their overhead and will reduce their payrolls by letting a lot of employees go or putting them on part time employment. When sales of goods and services decrease, distribution and manufacturing businesses are similarly affected and will also have to let people go or close their doors, adding to unemployment.
The downward spiraling of the economy continnues
The newly unemployed people have less money to spend than when they were employed and that will mean an additional decline in consumer spending on goods and services with as a result that more businesses will have to close and/or downsize, resulting again in additional unemployment. This creates a spiraling down economy of successive rounds of more unemployment and less consumer spending. The result is ever increasing poverty and an increase in crime that places an additional burden on governments. When incomes of businesses decline by say 20% and unemployment relentlessly increases, then tax revenues of governments at all levels of jurisdiction decline by more than 20% because of the insane progressive systems of taxation most governments have instituted. These progressive systems of taxation will cause tax revenues to decline dramatically so that when the total Gross Domestic Product (GDP) declines by 3%, that the tax revenue declines by as much as 30%. On the other hand, if the GDP increases by 3%, the tax revenue increases by as much as 30%. That causes immediate and sharp budget shortfalls and also surplusses at all levels of government and it causes the boom and bust economic cycles that we have been plagued with for many decades.
And in yet another economic mistake, governments are persuaded to implement austerity measures to reduce the size of the budget shortfalls when they experience the drastic decreases in tax revenues. Governments will be forced into these austerity measures by the segment of the 80% of the population that has no clue of how economics work. These austerity measures are a huge economic blunder because they results in additional unemployment which also contributes to the downward spiraling economy. The way governments try to persuade the media and the public that they have slowed down the recession and have ended the recession, is by blatantly lying about unemployment figures and economic statistical indicators. Governments may be totally ignorant of the sure fire way in which a recession can be ended in record time and turned into a new economic boom in a minimum of time, or they deliberately follow the directives of their special interest banking handlers.
The way to end a recession
The downward recessionary spiral of less consumer demand and less employment can be very quickly reversed into an upward spiral of increased consumer spending and increased employment. But how exactly can you get consumers and governments to spend more money? The administration cannot go on television and tell people: "Open your wallets people and spend more money on products and services because that is good for the economy." Nothing will happen that way because most people do not have any money to spend and those that have money want to hold on to it because things might get worse in the future and they want to keep what they have as a nest egg. So what is the solution? The solution is very quick and simple. The Federal Government must immediately create 314 million Federal Debit cards (one Debit Card for each person in the USA, babies and small children included, their parents get the debit cards until the children have reached the age of 12). These Federal debit cards get funded by the government with varying amounts of money each month for as many months as needed for the recession to be back to normal (the amount is different according to how deep a recession has been allowed to sink while the governments were bumbling or sticking their heads in the sand). For the government bumbling since 2007 and the recession having massively destroyed much economic infrastructure the debit cards must be funded with an average of $475 per month for at least the next 12 months running. The funding of the $475 per month comes with the mandate that the money must be spent each month within 30 days (before next month's funding of another $475). That would increase consumer spending by a whopping $110 billion into the economy each month and of course the total circulation will grow from month to month because part of the $110 billion from the previous month will also again circulate in the next month. This will immediately create jobs in retailing, distribution and manufacturing and in the service sector. The gradual increase in employment will of course stimulate consumer spending some more which in turn will again create more jobs. An ever upward spiraling consumption and job creation spiral has been set into motion that will end the recession in record time and will propel it to new records of prosperity. This heating up of sales and consumption will set off inflation, so we will monitor inflation from month to month so that we can measure carefully whether we should decrease the funding of the debit cards accordingly when inflation gets outside acceptable limits. Part of the inflation will be offset with the deflation that is created by the greater production of goods and services.
Wait a minute, there must be something wrong here.
This is where most people stumble with this brilliantly simple idea. In fact, in most normal people's mind, there are many things wrong with this idea. First of all most people reason that if it was really so simple, that the government would have allready done it a long time ago, so it could not possibly be such a good idea, much too simple for pundits and economists. Well, you people are giving government far too much credit. Most people in government know little or nothing about economics. They would not be able to run a hot-dog stand with a profit. The only thing they know is how to get elected and take as much money as possible from all the lobbyists that buy their votes from politicians on behalf of their special interest handlers. Also, where does the money come from with which to fund the Federal Debit Cards? And why should every person get the same $475, including all the very rich people? I will explain: If it is really as simple as it is the government would have done nothing because governments never do anything simple, they start with spending millions on studies by economists who do not agree on much, except recommendations on having more studies done. They mostly complicate things as much as possible and get nothing ever done very quickly. And speeed is really of the essence so that the downward spiraling stops as soon as possible and is not allowed to destroy more of the economic infrastructure the longer a recession is allowed to rage.
So, tell us, where does the money come from?
The money comes from "We the People" because we are going to take the previledge of creating money out of thin air away from that crooked bad apple banker cabal that is the Federal Reserve (that is neither Federal, nor has it any reserves). We will print our own money and that way we will not have to borrow it from bad apple bankers and we will not have to pay interest on it and we will never have to pay it back because we printed it ourselves, it is our money. Yes, bringing extra money into circulation will create inflation, but it will create less inflation than bringing borrowed money into circulation that we would borrow from those slimy puppeteer bankers, because our own money costs nothing and no interest.
I must repeat these simple ideas because that improves learning by repetition. So here is the first repetition in a slightly different wording.
So, once more: How do recessions start?
All recessions start with a signifficant drop in spending for products and services. If spending drops for example by 20%, then all businesses that sell products and services will on average experience a drop in monthly receipts of 20%. Many of these businesses cannot survive a reduction in income of 20% because they cannot meet their overhead expenses and payrolls any longer and have to close their doors. Many other businesses have to cut their overhead expenses down by reducing the number of their employees and other such overhead cutting measures. The closing of businesses and the downsizing will of course create a lot of unemployment.
Next an additional drop in consumer spending results from the increase in unemployment because when people become unemployed, they will have less or no money to spend to purchase goods and services. This additional drop in consumer spending sets up an additional round of business closings and business downsizing and as a result even more unemployment. A downward spiral of successive rounds of less consumer spending and more unemployment is creating an ever worsening recession and may even deteriorate into a depression.
The ONLY WAY out of a recession/depression is to reverse the downward spiral of alternating reductions in consumer spending and increases in unemployment, by reversing that downward spiral into an upward spiral of ever increasing consumer spending and increasing employment. This upward spiral must be started by priming the pump with an increase in consumer spending which will cause an increase in employment. Most economists would want to increase employment instead in some clever way, because they think that increasing unemployment created the recession so that increasing employment will be the solution to end the recession. Sorry folks, poor illogical thinking. The main driver of an economy is CONSUMPTION, not production or employment.
Governments around the World and all their "expert" economists have not figured out how to reverse the downward spiral into an upward spiraling economy. They do as if they try their best to reverse the recessions into upward spiraling economies, but either their lack of understanding economics or their special interest masters keep them from accomplishing it. Lots of talk and no action and lots of lying about economic indicators. In the United States they gave $700 billion to the bankers and told the bankers to get that money into the economy by making loans to small and big businesses and so hopefully increasing production and employment. Of course the bankers just took the money and never made any loans, beause businesses in a recession do not need loans, they need customers consuming their products and services. They do not need and would not want any loans to increase the size of their restaurant or buy new machinery to expand their factory or production facilities. Their restaurant has already more room than they need and their factory already can manufacture more products than they can sell.
How to end a recession and prevent all future recessions:
The following idea explains in detail the method with which any recession will be turned into an economic boom in record time. Read it slowly and carefully all the way to the end before coming up with clever observations with which you would like to invalidate this excellent idea. Do not walk into the trap of evaluating new ideas with "common sense" or "gut feeling" or "intuition" because you will kill the most brilliant ideas in the process. You cannot come to proper conclusions without engaging your brain in analytical reasoning and to draw carefully reasoned conclusions.
Most people will compare new ideas to their own current beliefs and body of knowledge they have created from currently accepted old ideas and belief and they will very quickly dismiss new ideas after they have read only a few lines or listened only to a few sentences. Their gut feeling and common sense will kick in and they will shift their brain into high gear to explain their current belief. Some of them will actually lower themselves to the use of ridicule in their arrogant display of ignorance.
If the new ideas conflict with their current belief, they will quickly reject them as nonsense. They are totally oblivious to the reality that new ideas HAVE TO DIFFER from what people and "experts" currently believe, else these new ideas could not be NEW ideas. The more that new ideas differ with what people currently believe in, the more they will be rejected and that is why the most brilliant ideas are the hardest to explain and to be accepted by the general public. Mankind loses the most brilliant ideas this way and progress is stifled and even reversed.
So here is my request to you: Do not evaluate this brilliant idea by using "common sense", "gut feelings" and "intuition" and certainly do not rely on "experts" to do the thinking for you. Read this idea to the end before drawing any conclusions and use your own brain and not your gut to do the thinking. To learn my analysis on "experts" and expertise read www.GuardiansOfTheStatusQuo.com
Of course a recession will drastically decrease tax revenues at all levels of government and that will cause enormous budget deficits for governments at all levels of jurisdiction (Federal, State, County, City etc). The elected officials and their "expert" advisers now will immediately feel forced into austerity measures of cutting government employment by cutting services and also reducing all manner of government spending. That of course increases overall unemployment some more and as a result less consumer spending and more businesses failing. And unfortunately the general public loves reductions in government wasteful spending because they also do not understand how economics work. They believe that governments should have to live within their means just like everybody else must do. Well, that is a terrible mistake, because governments should do the exact opposite than implementing austerity measures. When a recession starts, governments should start spending like drunken sailors. But that sounds so wrong to most people because they have difficulty understanding that wasting money on frivolous government spending will actually increase employment and consumer spending which in turn will again increase employment some more in an upward spiral of more employment, more consumer spending and ever continnuing upward spiraling of the economy.
The only things that governments think will end a recession is cutting government spending and at the same time they dream up half baked stimulus ideas to increase employment. So how ludicrous is that, because cutting government spending will of course increase unemployment and as such will decrease consumer spending. So they really do not know what to do and are sticking their heads in the sand and do nothing. That will drag the recession out at least another 5 years with massive budget deficits of maybe $1.5 trillion per year that will add to the National Debt to the great joy of the bankers that are the owners of the Federal Reserve. So all of this is OK as far as the Federal Reserve is concerned and the Bankers that own the Federal Reserve. That fact alone must be changed by totally closing down the Federal Reserve, which is neither anything Federal nor has it any reserves. It is a big corrupt hoax which the general public is slowly starting to realize 100 years after this Federal Reserve hoax was created on December 22-23 of 1913 by a small group of corrupt members of Congress that had not yet gone home for the Christmas recess, like all the others. The timing of this vote to create the Federal Reserve and the vote to create the Federal Income Tax was deliberately set for the dates that all the members of Congress that were not in on the criminal scheme had already left for the Christmas recess.
Increasing employment would instantly make things better. There are two very effective ways in which employment can be increased and they should both be done simultaneously to get the economy out of recession in the fastest way possible. Both of these methods will unfortunately be met with immediate and strong opposition by corrupt or ignorant politicians on both sides of the isle (conservatives and socialists or liberals) because they know as little about economics as the public, that they supposedly represent. The only way we can get out of this recession mess is to carefully and slowly educate the public about the simple workings of economics and to undo the lies and falsehoods that are spread by the 0.1% of the people that control the economies of most Countries with their checkbooks. The politicians are royally rewarded for the corrupt laws and regulations they create for the benefit of the special banking interests and at the expense of the general public that they supposedly represent. There are over 2500 lobbyists for the 535 members of Congress and their total budget for lobbying exceeds $80 billion per year. If they were to only take $10 billion of that loot and divide it over the 535 members of Congress, each member of Congress would receive over $18 million per year. The rest of the money goes for bribing bureacrats and other people in positions op power at all lower levels of government (states, Counties, Cities etc.).
So this is what must happen to end the recession and create a prosperous economy:
1. Dramatically increasing consumer purchases of consumer products and consumer services by giving all 314 million people in the United States on a monthly basis money to spend on products and services.
2. Reversing all government spending cutbacks that have been implemented since beginning of 2007 by all governments at all levels of jurisdiction. And additionally hiring the same number government employees that were let go since the beginning of 2007. It really does not matter if all these government hires are completely useless people, because it is only a means to get money in the hands of consumers. We employ equally unproductive people in the private sector in that we pile many people up in highrise offices and let them create unconsumable paperwork or even worse with creating economy destroying lawsuits.
3. After the economy has come out of recession and has recovered into a prosperous economy, that is the time to slowly reduce the wasteful spending of governments at all levels and to stimulate manufacturing and service businesses.
Well, you can see now that most people in their right mind would stop reading right about here after having read these three points above because "common sense" and their "gut feeling" will tell them immediately that this supposedly "BRILLIANT" idea of "Ending Recession" must be complete nonsense and that reading any further would be a waste of their time. But they are completely wrong because the explanation that follows is totally outside the box BRILLIANT economic thought that will end the current recession in record time, and can prevent any and all recessions in the future and will guide the economy to new levels of ever increasing prosperity. "Common sense" is what most people and their governments have always used and it has gotten us nowhere fast because it is ordinary low grade below par dull common sense. What we need for unprescedented human progress in prosperity is extra-ordinary brilliant uncommon sense. But sadly such brilliant uncommon sense makes no sense to the below par common sensers which are in the vast majority in Congress and all governments at lower levels and sadly also among the general public. We are after all big champions of "DEMOCRACY" where each person has an equal vote and that makes perfect "Common Sense" but in reality Democracy is one of the biggest disasters for any country that adopts it as its form of government. Democracy is guaranteed to lead to control by the very few enormously rich checkbook puppeteers that rule any democracy by buying all the politicians they need to control the government. Democracy leads to an electorate that is very easy to manipulate to give their vote to the politicians that promise them the things they want from their government for free. Basically to take from everybody who pays taxes "the Rich" and give it to those that pay no taxes "the Poor", the government punishes success and rewards failure. If you punish success and reward failure, you must not be surprised that it leads to creating less success and more failure. Democracy makes for a majority vote of less intelligent people whose vote can be bough with cheap promises from the rotten apples that rule the whole World with their checkbook puppeteering.
So calm down and suppress your gut feeling "common sense" and emotional intuition and read the following to learn the brilliantly simple solution to ending this recession and the ever increasing prosperity created through implementation of these brilliantly simple ideas. At the same time it would take a lot of power away from the checkbook puppeteers and it would try to shift people slowly into the direction of less failure and more succes and more prosperity.
Any recession can be reversed in 2 months or less
Recessions can be halted and reversed within 2 months or less if acted upon immediately after a mild recession has been identified and enough money is quickly infused into a sagging economy. The longer a recession is ignored the more economic infrastructure is destroyed and the longer it will take to rebuild the destroyed economic infrastructure and bring the economy back to prosperity.
Economic infrastructure is destroyed in recessions
Businesses and factories are dismantled and their fixed assets are sold at auction at 20% of their replacement cost. It takes alot of capital and time to rebuild economic infrastructure and to find the former employees that have been scattered to all directions.
Try to spread this website to as many people as you can, because I cannot do it alone. “We the People” need all the help we can get. Do what you can.
By Alf Temme, Suggestions and comments to firstname.lastname@example.org