The American economy is doomed unless the Federal government finally:
1. deals with the crippling cost of private and public health insurance inflation by introducing government and employer financed health care debit cards as a substantially cheaper and more efficient alternative to the inherently inflationary Medicare, Medicaid, and private health insurance systems. Such a system empowers individuals and families to choose the best health care services from the doctors, hospitals and clinics of their choice at the lowest or most reasonable prices rather than having the government or private health insurance companies tell you what doctors, hospitals, or clinics you have to utilize:
How a real public option could reduce deficits, create jobs, and save the US economy
http://newpapyrusmagazine.blogspot.com/2001/11/how-real-public-option-could.html
2. Reduce Federal taxes or corporations from 35% down to 10% (which would be the lowest in the industrialized world) while making up for the loss revenue with a 0.5% transaction tax on stock trades. Such stock transaction taxes currently exist in Britain, Singapore, Hong Kong, Germany, and Japan and many other nations.
3. provide incentives for energy companies to start building more carbon neutral power plants (nuclear, solar, wind) and carbon neutral synfuel plants (urban and rural biowaste, CO2 from air combined with nuclear hydrogen, etc.) in the US (creating millions of jobs) by mandating that at least 50% of the electricity produced by a utility and 10% of the transportation fuel sold in the US come from carbon neutral resources by 2020, and 90% of electricity and 50% of transportation fuel by 2030. A 15% sin tax on energy production will be placed on all utilities that fail to reach these percentages and a similar tax would be placed of transportation fuel that failed to reach Federal percentage levels. By 2040, in should be mandated that 90% of all transportation fuel must come from carbon neutral resources with, again, the penalty of a 15% sin tax on fuels that don't reach this criteria.
4. Hire more Federal and local government employees. Yes. Hire more government workers!!! But do it by not increasing government expenditures but by reducing the work week for government employees from 40 hours per week to 32 hours (finally the 4 day work week).
That would mean a 20% increase in Federal and local government hiring without increasing government expenditures while also substantially reducing the cost of unemployment insurance (over $100 billion in unemployment insurance benefits were payed out in 2011, over $150 billion in 2010). Since government workers tend to make more than individuals in the private sector, the reduction in weekly income should not be too severe, (its a lot better than being an unemployed government worker). This could also lower the cost of overtime pay since individuals who worked an extra day per week are still not working more than 40 hours per week. Of course, any government worker who doesn't like a 32 hour work week could always take their chances trying to get a job with decent pay in the private sector.
5. Increase tariffs on nations that are not free and democratic (China, Saudi Arabia, etc) while lowering or eliminating tariffs on goods from nations that are free and democratic.
6. Increase government investment in space. The greatest amount of economic growth we've had in this country over the last 60 years was during the Kennedy-Johnson era when we were spending the most dollars developing new space technology. During the Kennedy-Johnson era, spending on our civilian space program reached nearly $34 billion annually. It is estimated that for every dollar spent during the Apollo era, an additional $7 of wealth was eventually created (over a trillion dollars of additional wealth!). Today we only half spend half as much on our space program (less than $18 billion annually) which represents less than 0.5% of total Federal spending. Spending Federal dollars for a Moon base and to help private companies to develop their own manned spaceflight capability may not be politically popular, but it would make us a lot richer. And that's why China is going to the Moon-- to make more money!