Right now the country has a case of Economic Colon Cancer, it is rotting from the inside and we're trying to cure it with ointment. The $700,000,000,000 bail out does little to cure the crisis without a fundamental change in our economic policy, of which I have seen little evidence. The past 8 years have seen the Dow Jones Industrial Average fall over 10%, or an average of over 125 points a year. Under Clinton, the DJIA went up 220+%, and increased an average of over 900 points a year! The difference is shocking, but not surprising. It sends a jolt through my system to see how the economy has contracted after such prosperity in the 1990s. So what got us into this mess? Well, poor oversight of the financial markets was one part, but out-of-control spending was the real reason for our peril. We spend on defense, spying, fighting in multiple countries and an incredibly costly war on drugs and ideals not in line with our own. So now that we're in this mess, what can be done to get us out? Simple, a change in the habits of our government would be the most important thing. To cure the crisis, the following actions must be taken: Opening trade with Cuba and all other "enemy" nations, Ending the war in Iraq and the "War on terror", and legalizing and taxing ALL drugs.
First of all, what better to facilitate economic activity than to open trade with our closest neighbor not called Canada or Mexico? For the past 50 years we have tried to force Cuba to conform to our own ideals and we have failed. Is the only reason the embargo continues is because the politicians don't want to admit their mistake? I've been to Cuba, felt safer there than in the US and saw many signs that it is a great, yet flawed, country. Castro isn't the best man in the world, but he's done a lot of great things for the country, including the improvement of education, health care and the elimination of ABJECT (homelessness) poverty. A lot of Cuba's problems are simply because of America's interference with Cuba's economy. If the embargo were to be lifted tomorrow, Castro would invest in the US and we'd invest there. Tourism in Miami would skyrocket, and the Cuban economy would flourish. Instead of having a remnant of the cold war 90 miles from our border, we'd have a Caribbean Norway, but with more beautiful women and better weather. Not only would trade help the economy, but it would help relations as well. After all, you don't want to get into a fight with someone who controls a significant portion of your economy, right? More trade means more economic activity, which means more jobs, which means a shorter depression. But it is not just about trade, economic activity between two nations creates a better motivation for positivie relations than an embargo. Cuban (and the others') leaders would be more receptive to American suggestions on how to bridge the gap between our ideals and theirs, and the enhanced wealth from the trade would give the Cuban government incentive to cooperate and compromise.
Name one major piece of the budget that has yet to accomplish anything. You guessed it, the "War on Terror". Terror is not a country, it is a tactic, a way of making yourself heard when the masses are not listening. Declaring war on terrorism is like declaring war on sarcasm. No matter how many sarcastic people you arrest and take out, new ones will develop in random places around the world. We could have declared war on Al-Qaeda and I would be in full support of that, but we just said that "we are going to hunt down all terrorists" like it was something that was possible. Many people we consider "Terrorists" are actually considered "Freedom Fighters" by millions of people, and that only serves to create more enemies. It has been over 7 years since 3000+ people were killed on 9-11, still we wait for the person who orchestrated the whole thing to be captured. When I left the Navy on 9-10-01 (yeah, the day before 9-11) I told my Captain that the reason I did not want to stay in the Navy was that "something is going to happen that will cause me to spend the next 10 years of my life in Iraq". I made the right decision, but many of my friends did not and are still stuck in Iraq. One thing Obama-Biden keep repeating is that we're spending $10,000,000,000 a month in Iraq when they have a $78,000,000,000 surplus. Why spend our money when they have it? Simply put, Iraq costs us so much money and brings us so little in return. Pulling out immediately would free up billions to stabilize markets and invest in new technology.
Where is one area of our economy that generates billions in economic activity without a penny paid in taxes? The black market for RX and "illegal" drugs and other "vices". If the Government came out tomorrow and said that all drugs can be purchased from a pharmacy, without a prescription, by anyone over the age of 18 and that it would be taxed at 25% if not prescribed by a doctor, the government would see billions in increased tax revenue. I do not spend any money on my health care because it is a hassle and it is not cheap. If I come home from my baseball game on Sunday and my back and shoulder are killing me (a weekly occurrence), my only legal option is Tylenol and that simply does not work. I have a high tolerance for medicine and require about 1,500 MGs (500 MGs is a typical dosage) of Vicodin just to have a minor effect. But even then, I cannot get the medicine unless I go to a doctor who is under my useless HMO insurance plan, pay $45 as a copay for him to tell me what I already know and then go to the pharmacy. Since most doctors keep very short hours (9-4, M-F), I have to take off of work. I am an adult who has been in my own body my entire life, I know it better than a doctor I have never met and know what kind of medication I need for pain. So why do I have to rely on a stranger to tell me what medicine I need? I live near Tijuana, so I can go over the border to get my medicine, but I can also find a crooked Dr. to write me prescriptions for Oxycontin or Vicodin. But what I cannot do is drive to Longs after my game, go to the counter and ask for the medicine I clearly need. So instead of going through all that trouble, I just medicate myself using illegal methods. Going through these illegal channels is not only dangerous for me (being arrested, not the danger of medicating myself), but dangerous for the economy. If I buy an ounce of pot or a bottle of pills, I may pay about $300 to my dealer. That $300 is then put into the hands of a criminal who does not pay taxes on his earnings. If all drugs were taxed at 10%, the economic windfall would be massive. But the legalization and regulation of all drugs would do more than just increase tax revenue, it would create legitimate jobs. Instead of the Mexican cartels, the drugs would be controlled by American companies who have oversight and who adhere to the laws set forth by the people. The sales of pharmaceuticals would also increase because of this plan. After all, I have not purchased a single Vicodin pill in years, but if it were sold over the counter tomorrow, I'd buy a small bottle for the house. Simply put, when something is illegal it does not vanish, it just eliminates the potential tax revenue and keeps people from being truly free. The same goes for Prostitution, legalize it and you take it out of the hands of shady pimps. Imagine if The Hilton had "staff prostitutes" on call at their hotels, think they wouldn't generate income? Prostitution is far more dangerous when illegal, simply because there is no testing or regulation and the prostitutes are in danger because they cannot go to the cops if something happens. If you take it off the black market and tax it, that can only help the economy. It's not like I couldn't find a hooker anytime, anywhere simply by using the internet. So why hurt the American economy because of some BS Puritan opinion?
So what have we learned from this? That our government is responsible for the global economic meltdown? Certainly, but the most important thing to remember is that it can be easily corrected through some minor changes in our policies and behaviours. As citizens we should realize that the low prices in the stock market represent a great opportunity to buy a lot more shares than you could in years. Instead of limiting your 401(k) contributions, you should increase them to help the economy recover. The increased contributions will put more money in the market and when it eventually rebounds you will stand to gain a lot more money. Any extra cash you have should immediately be sent directly into a stock or mutual fund (or many if you have more money). Unless you plan to retire in 2 years or less, your increased investment will pay off big in the end. The market will eventually rebound, even if it takes a decade, and anyone under 55 should not worry at all. In fact, young people should be excited because this is a chance to buy low. $50 would not have bought you much a few months ago, but today you can find some decent penny stocks (Sirius and Implant Sciences Corporation (IMX) come to mind) for $.50 or less that will clearly rebound at some point. Even if they don't, you can have 100 shares (like lottery tickets, but with a better chance to win) of Sirius for around $60 with commission, which is the same price as a PS3 game and the outside chance that it will go up. Even if it just makes it to $1.00, you've still made enough money to sell it, buy a PS3 game and have enough money left over for a pizza. Or you can just sit on your ass and watch our economy go down the drain.
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