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Over in Europe, they are going through another round of economic hardships. It was just announced that they are officially in recession, once again. This did not surprise me in the least. They have not taken any real steps to improve their economy. Why would anyone expect a better result ? You canít fix an economy with bank notes and empty promises. You can only fix an economy by letting businesses thrive so they can produce more valuable products.
Greece is at the leading edge of the economic troubles. They have been bailed out twice by the European Union, and International Monetary Fund. If they continue to have 25 percent of their working population working at government jobs, how can they possibly get out of this? They are, without a doubt, heading for their third bailout in a very short period of time. At what point will the other nations cut Greece off? After 20 bailouts ?
After looking at the results of our Nov. 6 election, I believe it is obvious that we are headed down the same path as Greece. When politicians on both sides tried to explain how urgent the debt crisis is, most people probably thought that they were speaking Greek ! How right they were.
It looked very good to see the newly re-elected president calling Speaker Boehner, Mitch McConnell, Harry Reed and Nancy Pelosi to the White House. I donít know how much progress was made, but it was good to see dialogue taking place. We are less than six weeks from a violent change in our economic system. The changes will be automatic if no agreement is reached.
Here are my top five suggestions for the leaders in our government, to avoid the ďFiscal Cliff:Ē
1. Cut domestic spending by 40 percent (eliminate some useless departments).
2. Cut all foreign aid (even for Israel).
3. Cut military spending by 30 percent. (The president was correct in the third debate. We donít need more ships).
4. Tell all of the states, that they will be sovereign, in all matters that were left to them in the Constitution, from now on.
5. Roll back all regulations that were put into place, over the last two years.
I know that many others are giving them, similar advice. I donít pretend to be the only one saying these things. If they take my advice, along with advice from other like minded economically oriented people, they will bring about a more subtle change to our past horrific money management. If they donít, business failures will skyrocket next year.
ďFor SaleĒ signs will be seen on every street in Chester County. All of our banks will be looking for another bailout to help ease their pain. It will get very ugly in Washington.
It is not about the taxes. We can certainly use some reasonable and easier ways to comply with tax forms, but that is not the problem. It all about the spending.
Cut the spending, and the economy will become healthier, in as little as three months.
Happy Thanksgiving to everyone in Chester County!
David Snyder is the flight training program manager for two Israeli business jets. He is a former pilot for PanAm and is the former chairman of the Bucks County Airport Authority.