Common Sense: No problem can be fixed before a solution is formed. No solution can be formed until the underlying problems are clearly identified.
The officials in charge of fixing the economy have not articulated the underlying problems. Worse, many of these officials - directly or indirectly - created or contributed the underlying problems.
It is shear lunacy to expect that the people who screwed up the economy have any chance at fixing what they destroyed.
Identification of the Underlying Problems
Income: Average Real Weekly Earnings, (read: incomes adjusted for inflation), are below what what what they were in 1973. Income wise the average American family is worse off now than they were 37 years (4 decades) ago.
The Dollar’s Value: And it isn’t like we have a stronger dollar now. If we did perhaps we could get buy with less money. No, Uncle Buck is worth 95% less than he was 84 years ago when the “Creature From Jeckyll Island” (read: the “Fed”) came into existence.
Money is supposed to be a store of value. When you boil economics down to it’s core you are left with one law: Supply and demand. Increase the supply of anything and it’s value goes down. Our monetary system is flawed because if it isn’t expanded it collapses and when it is expanded the store of value is obliterated. The Fractional Reserve System is another example of a moronic idea created by greedy lunatics, It was doomed to failure upon inception. Debasing a currency only creates an addiction to debt.
Employment: In 2008 there were about 150 million workers. Today (U3-U6) unemployment is at 22%. The largest problem plaguing unemployment is the fact that most of the jobs lost were jobs that were created because of consumers binging on credit. For instance, in 2008 Americans tapped their home equity for stupid purchases. The best example of this is from Jim Quinn's 2008 article: Consumers borrowed $9,000,000,000.00 (9 billion) dollars (from home equity loans) JUST to blow it on 4 dollar coffees at Starbucks, which has since closed 900 stores. Debt to expand a business or debt to purchase a home is sound debt for an economy. Debt to buy expensive coffees at “Fourbucks” won’t be economically sustainable (as proved by 900 closed stores).
We had a booming economy that was built on a foundation of sand.
Drof/Globalization: (Read: packaging up factories and off-shoring them and the manufacturing jobs that went with them) equated to workers here competing against some poor individuals who make $2 bucks a day in some emerging country that has no work rules or standards). Globalization was an asinine idea. A blueprint for lowering standards here and raising standards there. We can capitalize the “a” in asinine if we consider the ramifications of high oil prices caused by Peak Oil (read: 80 - 150+ dollar a barrel oil).
Backwards: In 1914 Henry Ford helped spur the middle class by paying Ford workers $5 bucks a day (double what the average wage was then). Ford increased the demand for what he was manufacturing by creating a class of workers (read: the middle class) who could afford his product.
Drof: Ford’s plan spelled backwards. Drof is globalization. Removing manufacturing jobs. Borrowing from China et al to replace the lost manufacturing surplus and sticking the tab (read: tax bill for the deficit) on the class you are screwing all while blasting wages backwards by four decades and expecting to have any semblance of a strong economy is an entirely moronic idea dreamed up by lunes.