1) Let energy prices crash. Don't meddle with any of it. The net stimulus over the next two years will probably be on the order of 350 billion plus. . .Remember, M_O_M was right about the credit crisis. So, read the whole thing.
2) Worry about lower income households. Increase WIC [the Federal supplemental nutrition program for Women, Infants, and Children] and food stamp allotments to redress some of the loss incurred through the high inflation of basic needs over the last few years.
3) Let the auto companies go bankrupt, and extend government loans to them as part of the bankruptcy workout. The unions and the dealers should have to make their claims in bankruptcy court. Those judges are often very good, and they will inevitably do better than a Congress which is bent on vote-garnering. If you leave the interest-balancing to Congress, they'll create a worse bust.
4) Consider addressing energy conservation by offering credits to utilities to do outreach energy conservation. Allow the utilities to sell subsidized conservation units to low income consumers with low monthly billing add-ons, and to use average savings from these measures as offsets against renewable energy mandates. . .
5) Don't try some massive medical policy change. Setting up group pools for small businesses and older individuals who have not yet qualified for Medicare would pay off the most.
Tuesday, December 09, 2008
Listen to M_O_M
MaxedOutMama's five fixes for the economy: