Revisit the birth of the new economy policy.
First banks were not allowed to close; merger and acquisition took place as well as encouraged investment in government bonds. Next, Wall street equity value was maintained by earnings/share. Earnings are improved with computer efficiency. Wall street thus rebuilt American capital.
Supermarkets were then refocused and re-engineered to the 1960s marketing methods. However, the target for earnings were raised to 3% from 1% of revenue. The department stores were also revived. The automobile dealerships are still being rescued; to adjust to large cars for larger families. Population has since grown to need large cars and improved the economy.
This policy is based on obsolescence and replacement theory for demand side economy. The supply side economy is, in the mean time, to cut back on military spending. Due to job growth, collection of taxes can meet the yearly budgets. Social programs being mutual insurance in nature, can be administered only by the central government. As mutual insurance go, the policy owners pay into the program to balance the pay out. It is the new economy policy to provide jobs to social security recipients. With new jobs, the worker will pay more into the social program. The government surplus will eliminate the debts of past years, ultimately.
Inflation if any will be adjusted by supply and demand. Job growth is created by products and services to provide higher standards of living. Population growth will increase the base of the economy.
Was it easy to formulate this new economy? Yes. But the sequence of execution is done to perfection. Now, every morning, as we listen to news; we can correct any imbalance, on each day, if correction is needed. |
