Economic Recovery: The Next Steps

Everybody knows that the economy is not doing well. We are in a deep recession. Credit markets are still largely frozen. Companies and consumers that are lucky enough to have cash are sitting on it. No one is sure where the bottom is.

We have cause for concern, but not despair. We can emerge from this crisis stronger than before--if we keep our cool, act swiftly but thoughtfully, focus on solutions that really work, and not get distracted by political rhetoric that sounds good and feels good, but won't create a single American job.

The first step toward recovery is to implement the stimulus bill signed by President Obama last week. It is not perfect, but the tax cuts and some of the spending measures will help create jobs and jolt the economy. Despite significant reservations, the U.S. Chamber supported this legislation because doing nothing would be irresponsible. With the markets functioning so poorly, the government is the only entity capable of jump-starting the economy.

Once the economy improves, we will work hard to return government to its traditional role and put our nation back on a path toward fiscal responsibility.

But a stimulus bill is only the beginning. The second step is the revival of key industries.

In recent days, new proposals have been put forth to give U.S. automakers a better chance of surviving a steep decline in global auto sales and to keep responsible mortgage holders in their homes. These proposals should be carefully scrutinized to ensure that they would be fair to all parties (including the taxpayers!) and work as intended. But there can be no doubt that healthy auto and housing sectors are critical to jobs and economic vitality.

The third step is restoring credit and confidence to the economy. We need a solid plan to fix what went wrong in the financial markets and restore them to full vitality. There is no silver bullet, and it won't be easy.

The fourth step is to maintain our role as a global leader. Economic slowdowns have always bred isolationism and always with devastating results. In 1930, for example, America sharply raised tariffs, which helped turn a severe recession into the Great Depression. We must not make the same mistake today.

Finally, we need to remain positive and confident. It may be hard to believe, but we really can talk ourselves into an even worse economy. These are tough times, and we face enormous challenges. But these challenges aren't nearly as big as the will, determination, and ingenuity of the American people.

Comments

[familydamato]

End the foreclosure & auto crisis quickly, cheaply and painlessly.
Forget about government tax and spend!
Let Americans invest in America!
Encourage Americans 60 and over to use their retirement funds to buy foreclosures or autos made in America. As an incentive and to make up some of their Wall Street losses, tax these retirement funds at no more than 15%.
Set a cap of $250,000 - $450,000 for foreclosed homes to prevent the ultra rich from buying tax subsidized mansions and $35,000 for autos - AN ALL CASH DEAL.
All the government would have to do is require that foreclosures purchased at the 15% tax rate be held at least 3 years (to avoid flipping).
Benefits include:
1. Vacant foreclosures disappear.
2. Banks get cash for these foreclosures (a/k/a toxic assets) and can extend consumer credit.
3. The auto industry receives much needed cash and becomes solvent.
4. Neighborhood blight decreases as previously vacant homes are repaired and maintained. The building tradesmen are kept working.
5. Home values increase.
6. Consumer confidence increases and our economy grows.
7. The United States does not have to take on more foreign debt.
8. Taxpayers do not have to absorb the cost of borrowing.

[tompoe]

We've had eight years of tax cuts, and 4 million jobs created. Just how many jobs does the author think the tax cuts in the stimulus bill will create? Maybe he thinks the Huffington Post audience is mostly Bush fans.

[Rule Of Law]

He's hopin'...

[Rule Of Law]

Rreminds me of that scene in "Oh, Bother--Where Art Thou," when Pappy O'daniel's braintrust tell him that they, "Need to get us some of that "Reform," too!"

They had no idea what they were talking about, just as you gave us four talking points and not one solution!

How typical of the Chamber of Commerce.