Creative Ideas That May Contribute The Success of Obama’s central planning Economic Plan and Plan B:
First of all, Economy subject is not a pure science, in which you cannot duplicate its theory e.g. J.M. Keyence’s central government planning intervention or Adam Smith or Milton Friedman’s deregulated free market “conjecture” in experiment in Laboratory setting. Just like Philosophy is not a science too. If you believe Adam Smith’s free market can work well in any capitalistic society, you are dead wrong! Just like Ludwig Wittergenstein once innocently thought that he found the philosophy of “unified-field theory” and claimed, he solved the entire problem in philosophy. He was dead wrong. Alan Greenspan’s free-market with it’s invisible hand can regulate itself. He admitted, he was dead wrong too!
His long time critics, NYTIME Columnist and 2008 Nobel Prize winner in Economics, Paul Krugman rights this time! He had given lot warnings to this market and the deregulated economists, and bureaucratic like Mr. Alan Greenspan.
Now, most common people can know that tsunami recession is battering in America and the world! Again, Paul Krugman urged that big Government intervention is must in this extraordinary time! He stressed that more capital to bail out is better then less. Forget the federal deficit figure! Prudent is risk!
I totally agree with Paul Krugman, Government intervention or vast bail out is a must! And I coined the term for this kind government intervention in US as ”Central Planning Capitalism”! History cannot repeat and 1930 depression is not like this one. FDR’S New deal, cannot match to-days economic situation! “Central Planning Capitalism” is an agreeable term. The terms means that under the Capitalistic society, in certain abnormal situation, the central or federal government in order to enhance the trade, liquidity, job security, human health etc. Government can regulate the market with central planning until it become normal again!
Debate with the sudden-and- belated-deficit-conscience-aware GOP and Democratic Congressmen in the Tsunami economy time, will waste our time. We are still a country with Capitalism. However, it is possible in the extraordinary time, the Government execute the central planning intervention. Just like the Hong Kong Government executed it in 1998 and save HK economy successfully in a certain of time.
For most supporting Governmental regulated Economists: ignore the deficit, huge government bail out, lower interest rate and create jobs are their main measures to counter this tsunami recession! Other suggests that we can use the 1990 Sweden model or the learning of the horrible experience of 1980 Japanese meltdown to save to-day’s economy! Yes! THOUGH HISTORY CANNOT REPEAT, WE CAN LEARN FORM IT.
The all time greatest golfer, Tiger Wood said, “There is no one way to play this game!” Same! There is no one economic theory or hypothesis can dictate the “free- market” in capitalistic country! The simple truth is that there is no only one way to save this market or recession. Expect Paul Krugman’s big, quick bail out, ignore huge deficit…etc. We need some creative ideas.
Here are some:
1. Save the foreclosure first. No need to ask FDIC chief Sheila Blair and Harvard Law Prof. Elizabeth Warren, the most advocates for saving foreclosure. President Obama needs to strike the “root” of tsunami economy, Mortgages and foreclosures.
2. Universal health policy must be implemented. Let the main street Americans have a home to live well and health taken care. Then they shall fight for America in this recession time.
3. Special visa issued for foreigner, who can invest in the house market. For example, any one can afford to invest at least US$300,000, with a pass in security check; he or she can get a special visa to visit US multiple times within 5 yrs. After five year if she or he passes the security, they got the Green Card. If investors do not want the green card, they can still use the special visa another five year and keep the Green Card status, until they sell the house.
4. Share one job, one salary plus one unit of unemployment benefit with two people. For example, Company A has 100 people to work, in recession, Co A can use 50 people salary plus 50 unemployment benefits (provided by the federal Government) to share with its 100 employee. Co A needs not to fire 50 people, keep 100 people with 50-unit salary and 50-unit government-provided unemployment benefit. For further to save logistic resources, 100 people can rotate 50 to work and 50 to rest.
5. Low wage mentality. In depression time, worker needs to accept lower wage job. President Obama should give the incentives to the company that call back their out sourcing job in India or elsewhere to US.
6. Expend the tourist industry (a must!). Except the infrastructure, mining, construction, manufacturing, education and health services, transportation services and alternative fuel stimulus plan. Tourist industry need to be expended. More Tourists mean to stimulate the consumption and spend more in America by foreign visitor.
7. Need to keep excellent relationship with the emerging economy countries, e.g., BRIC and the traditional allies, Canada, England, Australia, Israel etc, and explore the business opportunity in South America and Arabic countries. Good diplomatic relation bring good business opportunities.
8. Plan B needed. There is no guarantee Obama ‘s economic stimulus plan will get succeeded. According to Romer and Bernstein’s Jan. 10, 2009 report. The Obama plan would have the maximum impact in the fourth quarter of 2010. After 2010, the effect of the economic plan would rapidly fade away (Jan 12, 09. NYT,Paul Prugman’s quotation). Whether its forecast is true or not. The Obama plan can help to buy time! Time is factor here. Obama needs use this an-near -trillion- dollar-bought-precious- time to make a PLAN B or before do anything to have a Plan B.
Prudent is risk, waiting is danger. We needs instant influx capital investment, special visa to Green Card route is the one way to attract foreigner to invest US’s slum house market. Sharing one job method can keep more people in employment and pay check while they are waiting the new job created. Lower wage mentality, means we still have job. Expand tourist industry, means increase capital. To save foreclosure and implement universal health means to give hope of the American Dream.
Plan B means precaution.
God bless America!