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Unstimulating the stimulus package: Ways to balance the budget and stimulate the economy.

Posted on: 26-Feb-2009

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There are ways to balance the budget and stimulate the economy at the same.  But the politics make them very controversial.  The reason is that you have to drive the benefits to companies, not consumers.  Consumers need more money to consume more. This can come from greater corporate efficiency – such as outsourcing -- which lowers the prices of goods and if business grows they employ more . . . Or the Government can spend more and/or lower taxes. But even if the Government gives them more money, there is a high likelihood that it will go to repay previous debt, having little stimulative effect.

So how can the government stimulate the economy without making its deficit worse?

The primary tactical approaches are

A) Change laws and regulations so that make it easier and/or cheaper to business in your country

B) Drive change in laws and regulations of foreign countries that raise their costs, and thus level the playing field.

The objective is to grow business so that they employ more, without resorting to fiscal stimulus spending.  A good example if A would be to repeal Sarbanes-Oxley. Another is reducing permitting costs and standardizing construction regulations. A good example of B would be to drive global pollution and worker safety standards. 

Neither cost anything. There are plenty of others, you just have to think creatively.

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About weQuest:
weQuest's are written by G Dan Hutcheson, his career spans more than thirty years, in which he became a well-known as a visionary for helping companies make businesses out of technology. This includes hundreds of successful programs involving product development, positioning, and launch in Semiconductor, Technology, Medicine, Energy, Business, High Tech, Enviorntment, Electronics, healthcare and Business devisions.

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