Chris Edwards at Cato makes some very important points regarding government spending as a form of "investment". As the public gains a better understanding of government spending, perhaps we'll move beyond superficial political games played in Washington to a more mature private sector economic awareness of what has to be done. Like most statist systems, ours has degenerated into cleverness, cronyism, propaganda and mediocrity. True vision, innovation and economic growth comes from the myriad supply and demand signals from private sector interaction released from the shackles of government intervention and central planning. Government intervention has misdirected capital to unproductive activity, and the private sector has to adjust to economic reality. A report today showed that savings are up, and this is a vital step in the economic re-adjustment. Once we can set stable rules of the game, estimate the costs of doing business, and stop the interventions which have investors frozen in uncertainty, long term investments by entrepreneurs in the private sector will begin and, slowly, employment will pick up.
Along with limiting government and preventing destabilizing interventions, education must be released to choice, private funding and innovation to meet 21st century demands -- just as immigration issues have to be dealt with so that we easily retain foreign students in America and attract talent from around the world. The great middle class need for good paying jobs in relation to prices can come about by making America a place of low costs for businesses, stable laws and freedom from irrational regulations. If we do it right, America will become an investment magnet, and with improvements in efficiency and productivity, we could see slow deflation of prices which will only place us in a better position to attract investment. This requires an elimination of the Fed and the development of free market banking based on something solid and dependable, not the counterfeiting and inflation-production that takes place now.
Private sector provision of assistance to the needy should also be a part of the transformation. Americans will eagerly give if they are confident in the future and the government system protecting their rights. Outside the needy, the majority of Americans can choose their own retirement and safety net plans from private insurance and saving/investment offerings. It's time to move past statist naysayers trying to prop up a dying system and who have demonized the private sector and free market principles, then take hold of our future and create it. It's time to move forward, not wait on the next government stimulus.