July 14, 2009

It's time to bail out the bailout!

By now I'm sure you've all heard pundits on both sides discussing the bailout. Well, the truth of the matter is we can never know how bad things would have gotten without it. My guess would be, had Bush not acted quickly to save the financial industry (hey, even a broken clock is right twice a day!) and had Obama not acted to pass the first stimulus package, we would be in a deep and dark depression. I would assert that today we'd have 25% unemployment, the financial markets would have ceased to function and we'd have absolute mass hysteria. Instead, we are left with almost 10% unemployment, financial markets that are recovering and yes, still mass hysteria. At this point, the primary problem we face is consumer confidence.

When the first bailout happened, nobody was writing about us being on the edge of a great depression. Nobody realized JUST how close to the edge we really were. So we reacted to avert a major recession. Because things were so bad, instead we GOT a major recession and averted a major depression. Now is the time to help aid our ascent out of this mess and to treat the real problem. Sitting back and doing nothing is negligence at best and absolute meanness at worst (people ARE suffering).

So, how do we do it? Well, we need to spend a bucket of money. On what, you may ask. Well, what's a big problem we are currently facing. Oh, ENERGY. The "cap and trade" bill that passed the House has been watered down so much it is currently USELESS. PLUS, and this is most important, it is a "free market" solution to the problem. However, some problems the state faces are "bigger" than the market can handle. What we need is a NEW solution. The government has the ability, if it so choses, to change the paradigm completely and create unlimited "free" energy. Here's how:

Step one: immediately build wind farms in as many locations as are feasiblle.

Step two: create a tax nullifying the price for businesses and people to install solar panels on their houses.

Step three: contemplate building nuclear facilities in places where wind and solar are not feasible.

Step four: massively upgrade the electric grid to allow for distributed power creation so people can feed into the grid as well as take and, hopefully, the grid can become 100% self sustaining without the use of coal OR natural gas plants.

Step five: GIVE THE ENERGY AWAY. Yes, you heard that right. It's the single biggest business AND consumer "tax cut" EVER. No more electric bill... EVER.

Furthermore, since we have a problem with car emmisions, let's build biofuel "farms" and refineries across this country. Our goal should be to allow algea to COMPLETELY replace oil. Again, GIVE THE STUFF AWAY. Not paying for gas would be the SECOND biggest "tax cut" for businesses and consumers ever.

This plan stimulates the economy now (can you imagine how many jobs would go into all of this building) PLUS gives us a MONUMENTAL comeptitive advantage in the global marketplace in years to come.

Uh oh, what about the boogy man, the national debt. I'll stipulate, it's a PROBLEM. HOWEVER, we will NOT fix the deficit in the short term or debt in the long term by allowing tax revenues to stay as low as they are now by prolonging this recession. If we do this plan, we will ensure in 5-10 years our tax revenues will SKYROCKET as people use this newfound energy independence to increase consumption AND productivity. Plus, combined with nationalized healthcare, we will once again become the single best place to make stuff in the WORLD, thus increasing export revenue. In short, we're taking out a loan today to create a return on investment that pays the loan off PLUS pays off all of the debt we had before. Oh, and it solves for the current Great Recession.

So, congress, DO THIS. DO IT NOW. Don't be wimps! It's time to be BOLD and think BIG. JFK and FDR both did! Why can't you!

Posted by MasterConsultant at July 14, 2009 09:49 AM

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Comments

Nicely put... I'm not so much for giving it away, but I do like subsidies for moving to biofuels and renewable electricity as it uses tax policy as a carrot instead of a stick.

One thing you left out that another poster wrote about years ago is R&D. We need about $50-100 dropped into advance solar and electricity storage. If you can crack the weight/storage density issue with batteries, you don't really need biofuels. If you can get solar above 50% efficiency and combine the two, you don't need anything else. Ever.

http://www.mcblogger.com/archives/2006/06/energy_policy_w.html

One other thing... not shipping hundreds of billions out of the country very year for energy will have a very real and very dramatic effect on our trade imbalance. Of course, it will also cause a depression in Mexico and a deep recession in Canada.

Posted by: mcblogger [TypeKey Profile Page] at July 14, 2009 12:47 PM

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