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Mr. President: This Is the Only Way You
Can Lift This Country Quickly Out of the
Recession
Every dollar that
is spent for “stimulus” should be evaluated and directed by one
overriding criterion: Does it make people more productive?
Here is why we need
to focus on productivity:
1.
Increased productivity is the only way to create new
wealth;
2.
Increased productivity is the only way to create new and
lasting jobs;
3.
Increased productivity is the only way to hold prices
steady, or lower them, when the excess liquidity, now frozen, finally
is used for spending;
4.
It is the only way to show investors that the government is
serious about creating new growth, new jobs and price stability in the
years to come.
5.
The private sector will respond by investing the savings that are
now idle. That will in turn accelerate your program for economic
recovery, Mr. President.
Applying any other
criterion but improved productivity will only postpone or impair the
recovery.
If you are serious
about universal health care, demand a plan for reforming the most
expensive health sector in the world that currently produces the
outcomes of a developing country. Ask for a plan that will turn the
negative productivity around. (Yes, Mr. President, the health sector is
getting worse each year, and if this sector had been as productive as
the average American worker over the last decade, our health care costs
would have been LESS today than they were a decade ago, we would
have given good healthcare to ALL of our citizens without
increasing the health care work force, and the health sector would still
have been the highest-paid sector in the economy.)
If you are serious
about education for all, ask the education sector to show how its
productivity should be improved as well, and ask that all students be
held accountable for the results that will make them highly paid,
productive citizens of this country.
All that said, the
highest returns on your investment in this economy will come from
investing in the only resource that is absolutely necessary for a bright
future: Americans young and old, urban and rural, male and female. It
is how Japan became the second largest economy in the world after World
War II with no other comparable resource available to her.
Job creation
happens in small businesses. Sixty to eighty percent of all new jobs
come from companies with fewer than 500 employees. If those companies
are helped with stimulus funds, their survival rate will increase from
20% over 5 years to more than eighty percent, and we shall have the full
employment you so strongly desire!
For
future earnings, nothing will yield higher returns than
increasing high school graduation rates, helping larger numbers of
people graduate from post-secondary schools and colleges, and
encouraging more people to enter graduate schools. We simply cannot
afford to waste our human resources any longer.
There
are economists who argue that throughout history, only wars
have brought about the stimulus effects that lift an economy
out of a recession. Military spending spawned the Internet,
satellite communications, nuclear energy development and
myriad other inventions and innovations that spurred
economic growth. |
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Mr. President, the
Second World War cost $288 billion; in today’s
money, about $3.1 trillion. According to Mr. Alan
Greenspan, we have expended or committed about $7
trillion to address and resolve the credit crisis.
That is more than twice what was required to win
WWII. But even this investment will not be enough
if the urgency of spending our money in the best
possible way does not push aside all other tempting
options. We should not direct money towards failing
companies that will never recover or to sectors of
the economy that must be reformed before
investments should be made. Nor should we
spend it on “shovel-ready” projects that will not
make us better contributors to the economy.
So, if you are
softhearted about all those who struggle in these
hard economic times, please be hardheaded about how
to best help them.
There is no greater
sense of pride than that derived from setting and
achieving challenging goals. So far, I have not
heard of any cogent plans for lifting the productive
contribution of every man, woman and child in this
country. But that should be the overriding —and
self-correcting — goal for this economy. Rest
assured that when and if that happens, jobs will be
plentiful, workers will be well paid, growth will
restore our belief in the future, and the ruinous
inflation that everyone predicts may be averted.
As a young
instructor at the University of Minnesota I trained
idealistic young people for the War on Poverty, and
I observed that only one strategy succeeded in that
war: Lifting the productive capacity of every man,
woman and child who were trapped in a system
designed to keep them poor. Subsequently, I have
had the privilege of working in China, Indonesia,
Malaysia, Norway and Sweden. In their disparate
cultures and economies, I found that
productivity-focused strategies always worked, and
that they were the quickest ways to create new
growth and new jobs.
I also had the
privilege of working with half a million children
and youth in 72 slums across this country for the
purpose of improving health. That was when I
learned about the importance of employment for heads
of families. It is where I learned to make use of
dedicated health professionals to improve health
with maximum effectiveness. That is why health
improvement teams had to include occupational
therapists, social workers, mental health workers
and nutritionists, in addition to physicians,
nurses, dentists, physical therapists and speech and
hearing professionals. The work of such
comprehensive health improvement teams helped
improve the health of the registrants in these
seventy-two projects every quarter for the seven
years I worked there, and also caused the
cost-per-year-per-registrant to fall,
as logic dictates it should. It was the most
successful federal project for improving the health
of children and youth in the history of this
country. Some 500 papers document how it was done.
We know how to make
people healthy. The VA knows it. Every thinking
health care professional knows it. Set the goal for
bringing this nation to health in your first term!
Believe me, it is possible, and it is doable.
It is crises that
bring about change, and opportunities for change.
Please do not waste this crisis — like a forest
fire, it has within its own destructive force the
power to create new and spectacular growth. We
need to burn off excess unproductive activities,
wasteful habits and the passive acceptance of the
destructive storm that is now raging across the
country.
We brought that
storm on ourselves.
We can still it.
Mr. President Barack
Obama, please, unite this nation under the dignity
of a common goal of recovery and provide the
resources we need to meet and exceed that noble
goal. It worked in World War II. It will work today.
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