PROGRESSIVE ECONOMIC PRINCIPLES: Creating a Quality Economy
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VISION FOR A PROGRESSIVE ECONOMIC FUTURE
The conflict between business and social interests does not arise from the entire capitalistic system itself but from it’s four major flaws:
- Inadequate Recirculation of Money
- Failure to Create Quality Customers
- Lack of Long-Term Planning
- Under-diversified Monetary System
In order to create a quality economy we must commit ourselves to overcoming the flaws of capitalism, while steadfastly following the essential Progressive Economic Principles. Conservative Economic Policy has run into a dead end. Progressive Economic Principles can rescue America and the world from this calamity and lead us into a future where wealth is created and enjoyed by every citizen in a quality economy by creating a new framework of economic decision-making.
Capitalism and social well being are not antithetical but are both enhanced when the government is run with sound progressive economic policies.
A properly empowered government with an intelligent mandate, both monetary and fiscal, can accomplish these objectives for the 21st century. However, the current structure of a significantly unbalanced budget and an expansive single monetary distribution channel – banking – does not completely meet the needs of the economy and usually causes excess or hyperinflation. Any government policy that combines the opposite, both a constrictive fiscal and monetary policy, can only lead to a disastrous recession or depression.
The current structure does not make common sense for long-term growth. Keep in mind though, that changing a major structure and operational system is very difficult to accomplish, especially in good times let alone bad. Change has to be slow and gradual to reduce economic turbulence.
One of the major structural changes should be to continually increase investment by diversifying the monetary delivery systems. The major problem with capitalism is that governments do not increase the monetary supply in an efficient manner. The best doctrine is an expansive fiscal policy with no deficits and an expansive monetary policy with multiple delivery channels under the central bank – Federal Reserve.
In an economy guided by Progressive economic principles the legislatures will continue to fight over how much to tax, regulate and where to spend. What is eliminated is the economic philosophical debate that the government should not be involved in the economy and the death of laissez-faire-libertarian economics, forever. The legislatures should also debate over the best policies to increase competition and promote growth in our economic environment.
Another major challenge for future governments is; how do we combat the flaws of capitalism in a globalized economy, where enterprises move from country to country to avoid regulation and the flaws? Eventually, in a Century or so, they are going to run out of countries! It is also very important in the debate on reducing the negative effects of globalization to include suggestions on creating a global level playing field and promoting growth in the entire global economy. Remember that increased growth brings in more tax revenues, without increasing rates, for our favored fiscal long-range programs, which advance the human condition. Economic logic is circular. It is not linear. Everything affects everything else
With this economic blueprint I have endeavored to provide the Democratic Party with an outline that charts a path to the future. My hope is that Democratic and Republican elected officials as well as candidates and economists will study these concepts and implement them at every level of our government.
We can expand the economy by reducing the flaws of capitalism and encouraging the favorable factors of commerce. This increases the standard of living for all, while eliminating poverty. Thus, capitalism becomes a system that provides for all even though many have more. Diversity of ownership further enhances this growing sustainable economic possibility for the entire globe.
Creating long-term wealth for the maximum number of quality consumers is the direct product of creating a quality economy. Creating a quality economy requires a more reasoned knowledge of and application of Progressive Economic Principles, which create the quality customer and entrepreneurial opportunity for the greatest number of citizens. Economic well being for all requires a balance between business and community needs that work together in everyone’s best interests.
We need to explore the solar system, the seas, cure diseases, stop poverty and urban blight, and promote democracy and capitalism in the old Soviet bloc and Third World nations. We are capable of accomplishing most of these tasks. The only thing stopping us is macroeconomics.
Macroeconomic policy based on Progressive Economic principles will offset the flaws of capitalism creating an adequate standard of living and community for all. By raising overall business growth through competition and diversity we will foster local, sustainable, renewable and humane communities living in a quality economy.