Policies
Policies should respect cultural diversity, human rights, environmental sustainability, and have a social focus to better the quality of lives of all people, regardless of their age, orientation, race, region, religion, or sex.
Faith based policies wrongfully impose religious standards on, alienate, and discriminate those that have different faiths, are a violation of Separation of Church & State, and or thus a violation of the Constitution.
Domestic policies should have a Social focus, such that they reduce the extreme income and resource disparities. Domestic policies should address the essential needs of the many.
Trade policies should contain and enforce Human Rights & Environmental Regulations to protect the people of emerging nations and their environment. Current WTO policies legitimize Human Rights & Environmental exploitation, protect exploiters from persecution, and give exploiters a comparative advantage over those that would prefer not to exploit.
Fiscal policies should be Fiscally Responsible, such that they don’t negligently instate Tax Cuts, which benefit very few at the expense of many; and overburden future generations with excessive debt. Current US Fiscal policies are Fiscally & Socially negligent, such that they overburden future generations with excessive debt, and reduce essential revenues which are necessary to provide essential social services.
Tax polices should be used to address the extreme income and resource disparities, which are evident and ever increasing. Current US Tax policies are Fiscally & Socially negligent, such that they amplify these disparities, are the least effective means of stimulating the economy, overburden future generations with excessive debt, and reduce essential revenues which are necessary to provide essential social services.
Foreign polices should be proactive and should promote and nurture global peace and stability. Foreign policy should be respectful of other nations and consistent with International Law.
Foreign Industries & Products have Significant Comparative Advantages, resulting in a High Propensity to Consume Foreign Products (HPCFP). Causing a high level of cash flow to be diverted away from the domestic economy in each cycle, and resulting in a Trade Deficit, which is averaging about $450 Billion a year, with a net cash flow loss of over $1 Trillion a year.
And the high profitability of Foreign Industry & Products, results in a High Propensity to Invest in Foreign industry (HPIFI). This can be seen in the Net Foreign Direct Investment overseas.
And the HPIFI is followed by Relocation of Regionally Independent Industries and Jobs (RRIIJ) from highly industrialized regions to emerging regions. The extent to this can be seen in how Corporations continuously relocate their production or reassign their service contracts to regions of the world where they are able to maximize their profit (ex. shoe industry, software, and call centers services).
As RRIIJ continues, there will be is Ever Increasing Competition for Jobs (EICJ) within highly industrialized nations, due to continuous cross training, ever decreasing supply of jobs, and ever increased demand for jobs. This will lead to a Convergence of Real Wages Internationally, a contraction of the Multiplier Effect, and of the Global Economy.
The core problem is Emerging Nations are Not Free Economies. Often their governments are not democracies, they are highly influenced by Corporations, they fail to enforce Human Rights & Environmental Regulations, and often Corporations choose to maximize profit at the expense of Human Rights & the Environment.
With regard to Trade Policy, the deregulation of trade as can be seen in the "Free Trade" policies of NAFTA, GATT, and the WTO, has allowed the HPCFP, HPIFI, and RRIIJ to run out of control, and it has legitimized maximized profit at the expense of sustainability. Which can be seen in the massive and non-sustainable Trade Deficits, Industrial & Service Relocation, and Job Losses across all sectors.
Trade is essential; but, trade policies need to promote mutually beneficial and sustainable trade. What we have today is extremely exploitive and non-sustainable trade, which will lead to a Convergence of Real Wages Internationally, a decrease in Regional & Global Multipliers, and a contraction of the Global Economy.
Convergence of Real Wages Internationally is inevitable.
If we neglect to standardize and enforce Human Rights & Environmental Regulations Internationally, Real Wages Internationally will converge more drastically, to lower levels, of greater instability & non-sustainability.
But, if we standardize and enforce Human Rights & Environmental Regulations Internationally, Real Wages Internationally will converge less drastically, with greater stability & sustainability.
With regard to Monetary Policy, the Fed has cut Interest Rates 13 times. Certainly it has benefited Home, Auto, and Capital Fixture Sales; but due to the HPCFP, HPIFI, and RRIIJ, most Corporations find it significantly more profitable to invest overseas. So the benefits in the first cycle are significantly limited due to the percentage of the Corporations, which will take advantage of it. And, due to HPCFP, HPIFI, and RRIIJ, we can expect a high percentage of cash flow to be diverted away from the domestic economy.
With regard to Fiscal Policy, the benefits in the first cycle will be determined by the industry to which it is focused, the number of jobs created, the income disparity within the industry, and the degree to which the produced product is utilized by society. Comparing Non-military vs. Military Industry. With Non-military, there are more jobs with a lower income disparity; recurring sales, with greater utilization & benefit; and a higher resulting economic stimulus (ex: alternative energy, it has recurring sales, and it reduces the trade deficit and oil dependency). With Military, there are fewer jobs with higher income disparity; fewer recurring sales, less utilization & benefit; and a lower resulting economic stimulus (ex: Fighter Jets, have fewer recurring sales, and are only utilized during times of war). And again, due to HPCFP, HPIFI, and RRIIJ, we can expect a high percentage of cash flow to be diverted away from the domestic economy.
With regard to Tax Policy, and Tax Cuts, the benefits in the first cycle will be determined by how the Tax Cut is distributed across the population, and the populations corresponding HPCFP & HPIFI. Due to the disparity of the benefits to the higher income levels, HPCFP & HPIFI, we can expect a high percentage of cash flow to be diverted away from the domestic economy. And because the Government choose to give a Tax break and forgo paying off the Budget Deficit, we can expect increasing Budget Deficits.
With regard to Foreign Policy, the detrimental effects of negligent statements, actions, in-actions, and positions have on Geo-political, Trade, Consumer, Corporate, and Investor Confidence in the United States and the World; can be seen in the degree to which the US dollar has lost significant value.