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Abstract
The economy is stagnating today because everyone is waiting
for someone else to restart the recovery. Consumers are deferring
major purchases until job prospects are rosier. Businesses are
pushing down their inventories and payrolls until their order books
surge. In essence the economic fundamentals are sound, but at
this point, we need a new catalyst for recovery.
It is time to implement policies that directly stimulate investment
including a self-financing equipment tax credit for productive
equipment purchases, adjustment of Federal Reserve and Treasury
market activities in order to lower bond rates, initiation of a
bounty for scrapping old cars, and the channeling of a higher proportion
of public funds to public investment in health, education,
sCience, and advanced infrastructures.