Monday, November 3, 2008

My economic recovery platform

Today I had an epiphany on how either of the presidential candidates could pull the US out of this economic freeze we're in. Ready?

Gather and store

It starts by recommending that American individuals and families begin gathering and storing food and other household items.*

Why do I think that would that work?
  • Gets people buying. Economies are made simply of people producing things that other people want, getting paid, and then buying things that others have made. Initiating a nationwide program like this gets lots of people buying food and other goods, much of which is produced here in the US, therefore encouraging movement of money around in the US again.
  • It's stuff they need anyway. Encourage people to only buy things that they need, things they're going to need eventually anyway. It's insurance against future shortages, especially in times of plenty.
  • Leverage the fear. Economies spiral downward because people who are scared stop buying stuff and start holding onto their money. However, if fear can prompt people to buy goods, especially ones they will soon need anyway, we should use it to improve the economy, instead of letting their fear drag it down.
  • Real value. If the economy were to really go sour (which I doubt it will), people will be very glad for the things they had bought.
  • Real bargain. As people start to hold on to their money more, inventories will go up in the short-term, which will cause prices to drop. That's the time we should encourage people to buy, when prices are somewhat lowered. If not, the factories will begin to lower production rates and we'll end up with fewer (and pricier) goods, and fewer jobs.**
Note I said "begin" up there, if we induce panic there'll be a run on the stores and it'll just make a mess. It has to have a gentle kickoff, then persistent, steady pressure to continue.

Don't forget to vote tomorrow. We'd hate to find out that the goose that lays golden eggs just tastes like chicken.

* Just like a years supply.

** I'm not an economist, but I play one in my office sometimes.

Does anyone read this thing?

views since Feb. 9, 2008