Responding to the Economic Crisis
The Second Edition of Ideas for
America 1 has about sixty ideas that can be
useful in this economy. Twenty of those are highlighted in Chapter
Twelve, "Responding to
the Economic Crisis." Here we have ten of them in short
form, each of which could be the subject of a great book.
We have this little chart on federal spending, which I
hope is of interest to you.
Federal Revenue, Spending, Deficit and Debt Numbers
(in billions)
| Year |
Revenue |
Spending |
Surplus or Deficit |
Total Federal Debt |
| 1980 |
517.1 |
590.9 |
-73.8 |
909.0 |
| 1990 |
1,032.0 |
1,253.2 |
-221.2 |
3,206.3 |
| 2000 |
2,025.5 |
1,789.2 |
+236.2 |
5,628.7 |
| 2008 |
1,880.3 |
2,800.0 |
-344.0 |
9,300 |
| 2010 |
2,1645 |
3,720 |
-1,555 |
14,456 |
| 2015 |
3,633 |
4,385 |
-759.0 (projected) |
19,863 (projected) |
Note: You may notice the significant reduction in
the projected deficit between 2010 and 2015. Whether
this is fantasy or reality, I have not yet been able to
determine. What is true is that basing private or
public spending on
optimistic projections of revenue is a slippery slope.
Sources:
U.S.
Government Spending,
New York Times World Almanac.
1. Annual Reports
There may be no better opportunity to effectively deal with
the economic crisis than high quality annual reports
from our state and federal government, sent to every
household. That is, five to ten page reports, complete
with graphics, that break down increases and decreases
in revenue and spending. Twenty or thirty years ago this
may not have been necessary, but with the government
involved in every aspect of our lives now, we need it.
At the very least, taxpayers could ask
for annual reports on government health care spending.
2. Energy We can take steps
forward in every way from good energy policy, which you
can read about on the
Energy Page. A better approach to energy at the
local and national should be part of our collective
response to a down economy.
3. Promote the Timebank
Model One of exciting new model I'd like to
introduce is that of
The Hour
Exchange in Portland. In a "timebank," members
donate work hour to the "bank" from which they can then
withdraw hours back in different services. For example,
is a carpenter spends five hours getting one members
home ready for winter, he could then :borrow back" five
hours of a different service from a different group
member. This system, is currently and successfully being
used in six locations in Massachusetts, including Lynn,
Cambridge and Northampton. Interesting to me is
exploring whether this concept could be used for summer
jobs for young people. Myself, I'm capping my income on
my book at that of the average American and using the
rest for good causes, and supporting the expansion of
these time exchange models is one area I hope to put
money toward. In my view every community should have one
of these, although they do need a good administrator to
make it really work. That is, to do background checks,
orientations and answer the phones.
4. Fitness for Older Americans
Chapter 8, "Fitness for Older Americans" in Ideas
for America 1 outlines some basics of the good
effects of exercise can have on the bones, tendons,
heart and other parts of the body. In any financial
situation, maintaining strength and flexibility is key
to feeling good and maintaining independence. I'm always
looking for ways for people to feel better, and you can
more about that on the site blog. I'm also looking for new
ways to help people
maintain balance and athleticism. Any thoughts or ideas? Let me know on the
Contact page.
5. Four Education Points
Education is of prime importance in dealing with the
current financial times. The four main principles in
education that this site has always advocated are;
1. Greater
utilization and expansion of vocational education. More
need the
opportunity to acquire skills that can assure
employability for life. Some of my clarity on this
subject comes from experience, but also from the work of
MassInc..
The core principle is that there are enough slots in
each area of study (plumbing, carpentry, electricity)
for all students to have an opportunity to acquire
skills they'll need to survive.
2.
Education for basic financial literacy, including
knowledge of mortgage loans. This is necessary knowledge
that students should be acquiring in school.
Understanding the opportunities for young people on the "multiple mortgage payer"
chart of the Tools page of this site is just one
potential benefit.
3.
High
quality physical education classes
can go a long way to help students relax and feel better
in their learning environment. Students are more
effective when they're comfortable, and quality
physical education classes can help many reach that
place.
4.
Better learning materials and specific goals for
language classes, similar to those found in language
schools, to ensure that students who took a language for
five years will actually be able to speak it. These
steps could also send English as a Second Language
programs light years forward, which will allow us to
integrate immigrant populations more effectively.
The
best policies in housing and health care can also
encourage young people to stay in school. The
emphasis might best be on acquiring the tools to
survive.
6. High Quality Public
Facilities High quality semi-public
recreational
facilities. That is, a good "in between" alternative
to the duality of extremes found in much of New England;
expensive country clubs and run down public facilities.
This idea stems from
the German municipal model. The hope is to develop
quality locations where people can pay three or four
dollars for entry, which could be a real boon to
individuals and families without anywhere to go in
summer.
7. Health Care/Medical
Malpractice Reform One of the nine causes of the
increase in the price of health care, medical malpractice reform
is necessary to reverse that trend. Some doctors pay as
much as $100,000 per year for malpractice insurance, and
of course the costs are passed on to the consumer.
Another aspect of this is that the current laws
and culture doctors are discouraged
from disclosing case information, lest it lead to a lawsuit,
which in practice means that doctors can't tell the
truth. Dealing with this issue is important not only for
getting down the price of health care, but also changing
the current culture, which encourages dishonesty and
deception. Additionally, dealing with the current crisis
is going to require courage, and so dealing with this
situation head on can be a good exercise.
8. Health Care Comparison
Shopping Nine causes of
the increases in health care costs are detailed in
Chapter 11 of Ideas for America 1, as are ways of
dealing with those individual factors. The most powerful
tool to keep prices down is effective comparison
shopping, and that is also explored in the book. Much of health
also has to do with lifestyle rather than health care,
and so we link
Natural Approaches to Health. These a a few of the
ideas developed in Chapter Eleven.
9. Humane Society Goals The
way we treat animals is an abomination and there's
absolutely no need for it. Improving the situation only
requires being thoughtful, coming up with a plan and
executing it. This is the same thing we need to do for
ourselves in this country; use our head and figure it
out, In the meantime check out the goals of
The Humane
Society. Taking the time to figure out a plan for
improving the lot of animals is a good exercise for us
and them in every way.
10. Produce a Citizen's
Handbook
"Every
person needs to understand his or her government, and
nowhere is this more important than in a representative
democracy like the United States of America. Far too
many Americans live in ignorance of the fundamental way
their country works. But things don't have to be this
way. What if we could give everyone a user's manual for
America? This is exactly what we can and should do by
providing every American with a "Citizen's Handbook"
that explains all aspects of government spending,
complete with in-depth text and detailed graphics.....This is especially important
in the current economic times since the flexibility
and effectiveness of monetary spending is extremely important
in dealing with unfolding crises. The first step to addressing
this situation must be to establish an effective process
of public dialogue and analysis, and this would be accomplished
directly with a Citizen's Handbook." Ideas for America 1, page 80.
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