Effective Economic Stimulus
February 3, 2009
By Stephen Pidgeon
It has become clear that the Obama administration is completely without rational guidance when it comes to steering the economy to recovery. As much as I don’t want to do it, because I don’t like the leaders in Congress and what they intend to do to the United States, I fear if I don’t speak, the OA won’t get anything right.
Here is the quick formula for economic stimulus:
- Repeal Sarbanes-Oxley. Newt Gingrich moped about “mark to market” (one repressive aspect of SOX), but a return to NSMIA is absolutely necessary to spur entrepreneurial zeal sufficient to create new jobs.
- Create a federal corporations act. Federal incorporation should be required for all companies seeking to export into the United States. The statute should require strict compliance with all federal employment regulations and the Foreign Corrupt Practices Act.
- Consolidate Fannie Mae and Freddie Mac into the Federal Mortgage Authority, into which mortgage lenders and home owners can place abandoned and foreclosed homes for resale, refurbishment, and rental. (Premises must be vacated prior to placement).
- Open Accelerated Cost Recovery (ACRS) to $1 million per year to encourage immediate investment for domestic production.
- Create the Federal Bonding Authority to purchase state issued bonds for targeted infrastructural development, including nuclear power plants, alternative energy creation, broadband expansion, and existing infrastructural refurbishment based on developed criteria.
These are the first priorities toward reestablishing viable markets and job creation. In the first instance, IPOs would again be revived; in the second instance, trade imbalances would be adjusted and American jobs in manufacturing and industry would be reestablished; in the third instance, the housing price collapse would be arrested and people would not become homeless; and the fourth instance, companies with capital would retool; and finally, states would take care of macro-infrastructural responsibilities, while hiring a substantial labor force.
These are good ideas, which is why I am suggesting them.
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