The Economy Needs Cures And Not More Remedies
This self defeating activities are not limited to credit. We have immigration laws. Why? Because illegal immigrants do the same to our labor pool as counterfeit money and credit do to our wealth. Drugs are legal that are worse for our health then the ones that are illegal are encouraged and fined at the same time. On and on the paradoxes continue.
To cure our economy, instead of just remedy, and the current crises two things must happen. First, the legislators must realize controlling who gets credit and how freely it is distributed is as much a part of their job as it is to control the Fed’s printing presses. In reality, that is what credit distributing companies are doing, allowing counterfeit money to enter the system. There is a reason every dollar bill has, “property of the US government” written in it. Because money is a function of the system. It is not a right of the citizens as many conservative minded people seem to think.
The second is that the legislators need to stop indirectly trying to influence wages in the system and take a more direct, but free market, approach to minimum wage. The current static number needs to be replaced with a dynamic “minimum percentage”. This free market symbiotic method of setting a wage floor would be more effective. If the economy needs to increase circulation, the legislators could simply increase the minimum percentage. That would hold the top in check, while delivering market stimulation to the bottom and most immediate participants in the economy.
Credit should be a tool, like printing more money, in order to influence and tweak the system. Want to stimulate the economy? Release a few billion in credit to the financial institutions. They can "bid" on the credit by offering the terms in which they will be extending the credit. The best terms for the public will be allotted their desired amount of credit. If the prices are getting out of hand, a recall could be issued to the financial companies to reduce their credit lines. This would inherently force financial companies to consider the risk they are getting involved with.
The US economy doesn’t need more remedies. It needs cures. Those cures are going to require that the American people give up on these ideals of entitlements that were never part of the original promises.