Solution to the debt problem and a stronger economy.

Discussion in 'Politics, Religion, Social Issues' started by TSE, Nov 28, 2008.

  1. TSE macrumors 68030

    Jun 25, 2007
    St. Paul, Minnesota
    I have researched a lot of political analysts views, ideas, etc. I have heard Obama's views and ideas, I have heard George Bush's views and ideas, I have heard Ron Paul's views and ideas, I have heard and researched a lot about this. Why? Because I am a loser and politics is one of my hobbies. I combined some ideas, I have taken some ideas out, I have created some new ones. I don't know if this would work 100%, but I just want to know what MacRumors thought.

    Right now our foreign debt is in the trillions, and our economy is down the tube. One of the main reasons for this is because of countries giving America the cold shoulder because we owe them. Another reason for this is because a lot of American jobs are going across seas or to foreigners who work harder for what they want because their parents push them more because they know America truly is the land of opportunity, except in fine print it says,"You need to work your ass off for that opportunity".

    My plan that I came up with would hopefully fix that idea, and maybe even fix some social issues as well.

    My plan is to make a new currency and share it with some of our closest allies, Japan, Israel, Canada, Puerto Rico, Mexico, Columbia, and of course ourselves, the US. This would make our closest Allies and us share the same currency, and it would also make it so that the US picks up some of the slack and raises some of the poorer countries economical-wise such as Mexico and Puerto Rico. This would be very similar to the Euro.

    This would also make it so that the US would look a lot more open and friendly to other countries. Most countries view the US as very enclosed and not open to other countries.

    One of the reason why their are so many illegal immigrants in America is because our currency is worth more then other countries' and lack of jobs in other countries, mainly Mexico. Instead of taking and taking from China, a country that treats their lower-class population horribly, and is starting to become a threat, we can move the jobs to Mexico and Puerto Rico. This could end a lot of illegal immigration problems, and would also end a lot of the poverty that is in both countries.

    Since we aren't taking and taking from China, our foreign debt with them will also stop right in it's tracks. This could then lead to us going in the right direction and start to pay off the debt with other countries.

    Of course, to get to a better economy we need to stop going into even more debt by the $700,000,000,000 bailout plan, the bailout plans for auto-motor companies that make stupid decisions, and endless wars. If our economy was based off true conservative capitalism, this would make companies not make stupid decisions such as GM, it would make it so countries become more competitive lowering the prices, which would make people buy more, which would make it so companies produce more which makes it so they provide more jobs.

    Another thing I might add to the mix is ending the war on drugs, which is costing us a lot. If we ended the war on drugs, and made marijuana and other drugs legal with certain restrictions, this could make it so Mexico, Israel, and Puerto Rico could start making it which would lead to more jobs and more money through the system. It would be a whole new industry.

    Tell me what you guys think, and what you guys think wouldn't work with the plan.
  2. Desertrat macrumors newbie

    Jul 4, 2003
    Terlingua, Texas
    Well, there are solutions, and then there are politically viable solutions...

    New currency? You'd have to persuade the rest of the world that it's actually better than the present currencies, or better than the USD. So far, the best currency going seems to be the renmimbi...Sure, China has problems, but their GDP growth rate is said to be on the order of 7.5%, down from 12%. 7.5%? What other country comes close?

    I don't know of any way for the U.S. to struggle back other than to quit being consumers and the world's marketplace. We gotta get back to making things which can be sold at competitive prices.

    The only way you can sell at competitive prices is to have some near-even overhead per unit produced, compared to the competition. Why else are our car manufacturers in trouble? It costs GM more per car to produce anything, whether SUV or Econobox.
  3. CalBoy macrumors 604


    May 21, 2007
    First off, this doesn't make you a loser. Most kids your age wouldn't bother to be even half as interested in the very problems they will face within the coming decades.

    Ten years from now when you're a responsible citizen, no one will think you're the loser. :)

    Puerto Rico's currency is already the US Dollar, as it's a US Territory.
    The Euro's success is really only a part of the reason why those economies are able to do well. The "common market" allows Europeans to sell to each other with very low tariffs (in many cases none at all). NAFTA largely achieved this result many years ago with Canada and Mexico.

    It would be much more difficult to convince nations like Japan (or South Korea) to agree to such a treaty, because these economies were largely built on very large government protection and subsidies. Japan may be willing to sell cars in the US, but that doesn't mean that the Japanese are equally as willing to let Americans sell cars in Japan.
    Contrary to popular belief, the US does trade with most of the world's countries (with the possible exception of Cuba :p).

    The problem really isn't whether or not America trades with other nations, but rather that we don't make enough of what other nations want to buy.
    Mexico already received a lot of American outsourcing during the early 1990s. The Big 3 famously sent a great deal of parts production into Mexico.

    In essence, the scale of labor expense goes like so:


    Mexico's labor costs have always been higher than those of China, so it would not behoove manufacturers to move basic production into Mexico.

    Also, Puerto Rico is already part of the US, so no one can really be "illegal" if they are from Puerto Rico.
    This is certainly a very crucial point. The cost of enforcing anti-marijuana laws is enormous, and the sheer size of the marijuana market is massive. Taxing it at even 2% would yield enormous benefits for state and local governments and probably reduce the incidence of drug violence. Plus, production would mostly be domestic, since the US already produces so much marijuana domestically (and many other drugs as well).

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