I would start with a state of the union where I would announce that I am going to be doing some things that may be very unpopular with some people including some withing my own party.
The first order of business would be to put the social agenda issues on the backburner so that we could concentrate on the economy and not be distracted. (of course if I were elected the forces that helped me get elected would have a lot different outlook than the current administration)
Then I would order my financial team to start drawing up plans to allow the crippled institutions (Banks, AIG, GM, Etc) to go away (via some sort of controlled bankruptcy) and stop being a drain. Naturally I would encounter resistance but I would put my foot down and make it happen. The bleeding would stop, there would be no nationalization and the assets of these companies that are still worth something including the physical assets would be auctioned off with some sort of federal incentive for buying. The so called toxic assets would be eaten by the govt. if we are going to wind up paying for the entire thing anyway i would rather draw down the life of these companies, take the hit and start moving in the right direction. I'm sure that it wont be as simple as this but this is theoretical.
I would lower govt spending and eliminate wasteful programs and projects. Not talk about it and do the opposite like what is being done now. The artificial attempt at propping up job creation through govt is scary because we all know that very little govt ever goes away especially if it means losing jobs. If Bush had reduced spending as well as cutting taxes his plan would have worked much better. The environmental lobby would be told that there will be no cap and trade or other token programs that will simply be window dressing. Any changes that they wish to implement will need to be done slowly and on a small scale. If they want the bone of no off shore drilling to continue, I would give them that.
I would also try to keep the dollar strong which will help our businesses and consumers as the rest of the world struggles as well. This of course is a little trickier but steps would include the above reduction in govt spending to keep from having to print more money to pay when the US treasury market stalls. A tick UP in interest rates would probably be needed also. Not much but the almost free money being offered right now has less appeal to business because of the lack of tax incentive to get and use this money. The relative strength or weakness of the dollar is tricky in its effect but i believe that a strong dollar would help the consumer and strictly US based business in a positive manner.
I would give some radical tax breaks to certain segments. The current, non default home owner would get a special, one time tax credit of significant value, not $250 dollars or something like that. They are the backbone of the housing market and responsibility should be rewarded especially since we will almost assuredly have to do something for those in default. I would also give new home owners a sweetheart deal of some sort as long as they meet certain financial standards. I would run the risk of Dems calling me for the 'rich' and other bunk but forcing home ownership on the poor is a major reason why the housing market imploded regardless of how Barney Frank tries to deflect attention away from his actions. In order to stabilize the housing market, we need new, solid ownership and increased buying. Allowing and rewarding responsible consumers to upgrade their housing while the market is depressed and they can get a great interest rate (despite my inching up of rates) helps everyone except those who defaulted.
Wall street would need help but they also need supervision. I certainly wouldn't implement wage caps. This is a purely political move that can only serve to push the really strong minds to other sectors. Getting rid of mark to market accounting is one thing that would need to be done. I would have my justice dept draw up strict regulations that will deal with fraudulent practices and predatory lending. The tricky thing is that lots of regular people depend on the health of wall street for thier retirement accounts and with that in mind we will walk a fine line between regulation which will be enforceable and effective and punitive punishment which will add to market depression.
Unions would not like me.
I would reverse the stem cell policy of the previous administration just as Obama has done.
I would refrain from doing anything on iraq or Afganistan until I fully understood the situation as opposed to the general public's view.
I would begin to take steps to simplify the tax code. This would have to be done over an extended period and since my plan would work I would have at least 8 years.
I would increase the retirement age to begin to deal with the Social Security and medicare problem.
I would increase defense spending especially in areas where the modern warfare that we currently fight are strengthened as opposed to simply buying more nuke subs. Also included is a substantial pay raise for those already in the military. Why don't we pay these people more? If we are going to subsidize the lazy of our society, why not do the same with the brave? Defense spending is almost a 100% investment in American business and job creation. I would also create a program whereby recently retired police officers (many who are in their 40's or early 50's) are brought into the military and used to create a Military police that can be used more effectively than regular troops in places like Iraq in policing the population and specializes in teaching the forces of these areas to police themselves more effectively when we leave. Our soldiers are taught to kill not police.
I would absolutely NOT tax American income overseas as the research has shown that American firms overseas investments not only strengthen their domestic businesses but increase employee compensation. This goes hand in hand with the strengthening of the dollar strategy.
Infrastructure spending would be necessary not only as a job creation function but because our country needs it.
I'll have more later
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