In addition to the depression, the major economic problems facing us are global warming, decrepit infrastructure and a dysfunctional healthcare system.
Global warming is definitely an economic problem. Complicated cap-and-trade systems will not solve the climate change problem. Regardless of what we do, Saudi Arabia and the other oil states will be selling oil, thus defeating our efforts. The best way to get us out of the looming global catastrophe is by finding and developing renewable energy resources that are cheaper than oil, gas or coal. If renewable resources are cheaper, the sale of fossil fuels will decrease.
Decrepit infrastructure is delaying production, increasing the price of goods and making the delivery of services inefficient. If the infrastructure is not rebuilt, our competitiveness will be reduced and it will be more difficult to get out of the depression.
Our healthcare system is more expensive and less effective than those in other industrial countries. The fact that 47 million are uninsured greatly reduces our economic efficiency.
Of course, solving the depression problem must be priority one. Without a decent economy we can't do anythig else. However, an excellent way to solve the depression problem is by solving our other economic problems - climate change, infrastructure and healthcare - at the same time. I believe that they are all related.
Let's look at the depression. Up to now, we have given bailouts to financial institutions with the hope that they will make loans to entrepreneurs that will increase economic activity that will eventually trickle down to the man on the street. Why not start from the other end by increasing the economic activity of people, which will trickle up to financial institutions. Let's give direct aid to investors and workers.
By far the most important area for investment is the development of renewable energy resources to beat the competition from fossil fuels. The government should give money directly to renewable energy entrepreneurs. To help workers, the government should invest directly in the rebuilding of our infrastructure. Healthcare may be considered to be part of the infrastructure: it is needed to increase the efficiency of the economy.
Bailouts of financial organizations helps primarily the fat cats that brought us to this sorry turn of events. By aiding investors and workers busy on renewable energy resources, infrastructure and healthcare we can solve all our major economic problems at the same time.
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