The One Percent Fix for the U.S. Economy

By Patricia L Johnson

The National Journal article 11 Ways to Jump-Start Economic Growth: Not Increasing the Deficit Edition has a couple of super ideas for jump-starting the economy without spending any money. The first one that caught my eye was the proposal by Representative Connie Mack IV, 14th District, Florida.

Representative Mack suggested a flat one percent, across the board, cut on all expenditures which he claims would balance the budget by 2019.

The primary advantage to this plan is the fact that everyone feels the impact of the knife slicing away at their dollars. The ability of the individual department heads to make their own cuts is extremely attractive. When it comes to budget cutting, there is no one better qualified to make decisions on the cuts than the individuals originally responsible for preparing the budget. They know where the padding is in their particular budget and can make effective cuts without creating major hardships. The one percent across the board cut is also a fair and balanced approach to the problem that has been dividing our country for months.

Another excellent idea was presented by Dennis Kelleher, President and CEO of Better Markets. Mr. Kelleher suggested putting Federal Reserve Chairman Ben Bernanke in charge of job growth and lowering the unemployment rate. According to Kelleher “There was no more creative person in the world when he had to save the financial system in 2008…That’s what we need now to combat the catastrophic unemployment crisis. It is every bit as serious as the crisis we faced in 2008, and it deserves the same massive response”.

I couldn’t agree more, if it wasn’t for Chairman Bernanke most of us would be standing in soup lines right about now. Unfortunately his plate is full so he is probably not a viable option at this time.

Ed Gresser, Director of the Progressive Economy project at Global Works Foundation thought eliminating the debt ceiling was a step in the right direction. Based on what recently transpired with Congress and the debt-ceiling fiasco, and the subsequent downgrade by Standard & Poor’s resulting in a non-stop roller coaster ride for the Dow Jones Industrials, it would be difficult to do anything other than agree with him. The debt ceiling is redundant and should definitely be eliminated.

© 2011 Patricia L Johnson

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