I know how to fix the economy in two simple steps and less than a year; but it will never happen. The same things that put this nation's economy on top are what can bring us out of this funk we're in now, and all we have to do is have the courage to bring them back. I am of course talking about capitalism, and competition. The trouble with our economy today is that we've gotten away from both capitalism and competition. You see, in order to get out of our economic funk, we have to get rid of some of the business regulations that are stifling the country. Now I'm not talking about the regulations they talk about needing to get rid of on the Rush Limbaugh radio show... no, I'm talking about the regulations that are barriers to entry for new entrepreneurs. It is after all, these start-up businesses that compete against existing businesses that has given this country its competitive edge in the world market. When any Tom, Dick or Harry could start up their own business to compete with the established businesses, the established businesses had to be at the top of their game to stay in business. Those that weren't at the top of their game got replaced by those that were, and so businesses in the US kept a competitive advantage. But that's just not the case anymore. Now it takes more start-up capital and know-how to launch a business than 99% of the population can muster. So existing businesses don't have to be the best to stay in business, and slowly we've been losing our competitive edge in the world economy. Furthermore by blocking these start-ups we've been stifling the innovation, motivation, and ultimately the capitalism that made this country what it once was.
So here's my simple two-step process for fixing the economy:
Step 1: Simplify the business tax code. You don't need to reduce business taxes; in fact, I know I for one could afford to pay even higher taxes if I didn't have to hire a CPA just to figure out what I do owe. Business taxes should be no more difficult than filing a form 1040-EZ.
Step 2: Eliminate licensing and bonding regulations. These regulations exist for no other purpose than to protect existing businesses from having to compete against more innovative startups.
It's really just that simple. With those two steps enough barriers to entry will be removed for enough people that we would see the biggest resurgence of the economy as has ever been recorded. Of course, it will never happen. Especially now that we have the recent SCOTUS decision that allows existing businesses even more influence over policymakers which will certainly be used to supress even more startup competition.