by Stephanie Kelton
- Admit that the real economy is powerless against a de-regulated and de-supervised financial system
- Recognize that the fiscal powers of the federal government can restore stability
- Ignore the debt-to-GDP ratio; allow it to drift to whatever value is consistent with an economic recovery and a return to high employment
- Enact a full payroll tax holiday by setting employer and employee FICA contributions to zero
- Provide $1,000 per resident to state governments to help them stabilize projected budget shortfalls
- Commit $2.5 trillion to restore our nation’s crumbling infrastructure and build a modern energy superhighway to facilitate expanded use of renewable energy, reduce greenhouse gas emissions and lessen our dependence on fossil fuels
- Downsize the financial system; reduce the size of banks to the point that they no longer pose systemic risk
- Ban the securitization of non-prime loans
- Determine the real worth of bank assets; instruct the U.S. Treasury to conduct a survey of the underlying loan tapes and require banks to aggressively mark-to-market
- Stabilize the housing market by creating a Home Owners’ Loan Corporation and bestow upon it a full range of powers, including renegotiation and rental-conversions, as deemed appropriate in each case
- Announce a job guarantee program (like the WPA) to provide employment and income to the millions of Americans who will not find jobs in the private sector even after the economy recovers
- Carry these messages to elected officials and urge them to practice these principles in all our affairs
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