Now it’s 2017 but it was back in November 2012 that the two things needed to avoid the so-called Fiscal Cliff being a problem were blogged here:
1.) Share out the jobs
2.) Cease trading at a deficit
Neither Republicans nor Democrats seem to have any idea of this solution, it’s detail or value. Only small measures were taken to reduce the government deficit and so there has been no fall from a cliff (well! USA government shutdown with nearly 1M workers not paid 1 Oct – 16 Oct 2013). Debt continues to grow, USA government still spends more than it gets in. Total USA government debt is about $15,000,000,000,000. But that’s not all Americans owe, private debt on top is estimated at $40,000,000,000,000! Supposedly only $5,000,000,000,00 owed to China. Chinese now enjoy spending the most as international tourists – of course these are not the low paid Chinese workers. What about the cliff? Will the debt make it crumble, and the dollar plummet? Who do the rich and powerful of China care more about, their American customers or their poor Chinese workers? Will creditors be allowed to lose out or will future generations of USA citizens be held to account? If the latter will China use the money to pays its workers more? There is another solution to the wage disparity, can you work out what it is?
Part of the solution that will end the economic mess and provide long term stability is to share out jobs. Doing this provides greater scope for change and therefore options to achieve an averaged out trading balance (imports equal to exports) and fiscal neutrality (government spending within what it collects in tax) or as close to it as is necessary to avoid economic ill effects including inflation and very low interest rates. Currently governments try to create jobs, ineffectively, and do not know how to equalise pay. The Trump administration, for example, has woolly ideas to repatriate jobs, and is pursuing the flawed idea of economic growth to create more work fuelled by abandoning climate change concerns, oh dear.
If you can help get our solutions looked at, perhaps have contact with a genuine philanthropist, responsible senator, congressman, newspaper or tv station, email: email@example.com