Thursday, August 4, 2011
A Two Part Solution To Our Economic Problems
The economy of the United States can be fixed, and it can be done probably without firing a single shot.
My Economic Plan.
Inform Saudi Arabia that they will start pumping more oil. They will continue to pump oil until the price of a barrel of oil is below $50 a barrel. Then with the planet awash in oil, the price of gasoline, diesel and jet fuel will go down. It will no longer cost $70 to buy 20 gallons of gas. The "savings" that millions of motorists will have will go to buy goods and services. This will create a demand for more products and services.
The second part of My Economic Plan is to talk with China about spending money in the United States to educate our children. This money is needed to hire teachers, buy school supplies and fill up our universities.
I do not expect American consumers to stop buying cheaper Chinese made goods, but I do expect China to take an interest in keeping our demand so their economy does not go into the tank.
So, in review, My Economic Plan has 2 Parts: Part One is to tell Saudi Arabia to pump more oil and flood the world markets with oil or else we will pump the oil for them, and then the U.S. Government will keep the proceeds. Saudi Arabia should be happy to accept this generous offer, and it should only be made once.
Part Two is to ask the Chinese Government to invest in the education of America's children. Their education is future demand for Chinese made products. This is a better investment in the future than buying U.S. Treasury debt certificates.
Within a few months the U.S. economy will come around, and as our economy improves, so will the economies of the rest of the world.