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The Wavering U.S. Economy and a Few Suggestions The U.S. Trade Gap narrows slightly to 64.8 billion dollars. The United States has the world’s largest economy with a GDP (Gross Domestic Product) 12.41 trillion dollars ($12,400,000,000,000.00). Being once one of the world’s largest creditors it is now debtor nation borrowing money from others. The period between 1930 and 1970 saw massive growth in the United States economy. People were making large amounts of money, the stock market was growing and life was good until somewhere around 1970 where stagnation occurred. Ronald Reagan implemented a concept call supply-side economics which states that higher taxes reduces trade, creates inefficiency in the market and reduces competitiveness. The government implemented this strategy and began to cut taxes wherever they could. Under Reagan’s administration GDP rose 31% and when Bill Clinton entered office another 38% increase was experienced. The economy moved forward until the dot-com bubble in 2000 and the terrorist attacks in 2001. The economy again took a dip and couldn’t recover quickly because of the competition from global markets. In the end America tried to salvage the loses and move more swiftly into the global market. The giant wavered against the world’s entrepreneurs. The American people have a responsibility to continue to provide a future for their children but are stuck in the culture of ethnocentrisms and urban blight. Yet not is all lost if the damage is minimized now and maturity is encouraged over “being cool”. There are a number of problems holding America back that include: 1.) Loss of the “American Work Ethic”: Yes Americans love to spend, look good and brag but few are devoted to a national cause. Unions, sense of entitlement and the “me” attitude have caused many American businesses to waver. The saving grace for the American economy with a higher business cost is to increase productivity. 2.) We don’t know how to save: In Europe house hold savings is around 9%, in Japan around 5% and in the U.S. around 2%. We Americans save almost no money and therefore do not have the debt-free resources for big ticket items like college, cars, and businesses. This lack of cash on hand is going to hurt us in the long-term as interest rates rise and the demand for money increases. Saving money allows us to push cash into the market when needed creating immediate value throughout the supply chain. 3.) Stop supporting war and stop supporting Israel: Truthfully, the war in Iraq and support for an illegal nation like Israel is costing Americans billions of dollars a year. Instead of spending the money on improving our economic condition we are flushing it down the toilet. The tax burden on the average American family is astounding. 4.) Business and productivity need to be our national identity: Americans need to get mobilized, put down their haughty images, and get to work. It is time that Americans associate their life with the greater cause of economic stability. This requires everyone to be as productive as possible and the brightest minds of business to be engaged. The more successful our business transactions are throughout the world the more successful we are. 5.) Kick out the bad politicians: Bad politicians start wars (i.e. Iraq), support welfare states that drain our economy (i.e. Israel) and make incorrect decisions (i.e. monitoring American citizens). All of this bad behavior results in poor decision making for our country, poor interracial relations, international political business fall-out where countries avoid us as business partners and poor moral. 6.) Tax breaks to business: Business relies on keeping costs down. When small businesses start they need as much advantage as possible. Large corporations have to have an incentive in order to build plants in the United States. Tax breaks reduce the cost of business, put more money into the market and keep government spending under control. 7.) Don’t forget the fundamentals to business: The fundamentals of business can be applied to the economics of any nations. If the United States is spending more than it makes on its exports than it is eventually going to go broke and default. We should only make trade agreements with countries that will give us an advantage. Murad Ali is the publisher and author of The Muslim Times at http://www.muslimtimes.com
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