The primary cause of U.S. structural unemployment, economic stagnation, adverse balance of trade, shrinking revenues, and expanding debt is the export of our high and low tech manufacturing, services, and R&D. This also empowers our global competitors at our expense. However, there is a simple, bipartisan solution: REINDUSTRIALIZATION and its multiplier effect on service and supplier job creation together with relevant skill and apprenticeship training partnerships reinforced by more technical/commercial high schools and community colleges.
HERE'S HOW COST FREE: require all recipients and beneficiaries of government research, development grants, and tax or other R&D incentives to produce the created products and their components in the USA for 3 to 5 years. After that period, these goods would likely become generic and could be offshored through patent, copyright, and/or joint venture or other arrangements. This would make room for the next generation of innovation, maintain full employment, and avoid protectionism. Non-compliance would result in the imposition of duties on such goods produced overseas in whole or in part. All research and development would be required to be done in the U.S. Innovative high tech (our strength) creates its own demand and markets in all economic cycles. Sovereign and foreign investment in U.S. high tech companies must be strictly regulated to protect against industrial theft and to strengthen national security.
ROADMAP TO ENSURE ECONOMIC RECOVERY, GROWTH, AND PROSPERITY:
(1) Change our immigration and citizenship regulations to attract and keep the world's leading scientists, engineers, researchers, and skilled workers and grant automatic green cards to qualified foreign graduates of American and overseas universities in select disciplines. This would make the U.S. a magnet for the best and brightest and ensure our innovation leadership.
(2) Promote domestic insourcing by incentivizing skill training, and automation for low tech manufacturing and routine services to reduce dependency on the importation of low tech goods. This would help achieve a favorable balance of trade, produce jobs for the unskilled, increase revenues, and reduce the national debt; (3) Restructure and convert Obamacare into Universal Healthcare (by expanding Medicare and eliminating Medicaid) and provide livable Social Security. Both systems would be made affordable by enacting a new flat tax code (graduated above the poverty levels for individuals and with a single flat tax on consolidated business profits - with all deductions eliminated and expensing of corporate investment in new plant and equipment) There would be surcharges for actual costs of these Federal entitlements (and/or by increasing FICA). This would create a taxpayer watchdog effect on the cost containment and operational efficiency of said entitlement programs; make our businesses more competitive in the global economy; save our cities, states, public authorities, and education unions from default by relieving them of their unsustainable financial burdens of healthcare and pensions; and stop corporate tax avoidance (inversion, domestic earnings stripping, borrowing to pay dividends, and encourage overseas profit repatriation), (4) Convert existing pension fund, traditional IRA, and 401k accounts into Roth IRA accounts and/or a special inflation protected government bond issue on a pro rata basis (with continued sponsor entity liability for their program contribution shortfalls). Social Security would be the only pension allowed for every citizen (no restrictions on personal savings, retirement accounts, and private investments); (5) Impose a global dedicated fractional (>1%)
securities & derivative transaction tax to help finance universal healthcare, Social Security, and free public education through college (FSB set and regulated); (6) Require reciprocal market access, set labor and environmental standards, and ban currency manipulation with all global trade partners; (7) Permit only government campaign financing for qualified candidates.
Harry L. Langer 212-517-5942