A Conclusion to the Wrong Debate?

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While it seems that a deal is in place to raise the debt ceiling so that our country can pay its bills, we are missing the real problem facing our country: ECONOMIC GROWTH.  The debate and ultimate compromise only focuses on a symptom and ignores the real problem that our country is not growing and shows no significant indicators that it will change its course.

If the United States grew its GDP by 1% more over the next 3 years (than current projections), we would not have to worry about our spending on Social Security or other entitlement programs.  Significant economic growth combined with a decrease in our presence and subsequent funding for the wars in Iraq and Afghanistan would allow our country to pay for our commitments (social security, etc.) and a new stimulus (to improve our infrastructure, increase our human capital, and promote employment).

Stabilizing our economy for long-term growth should be our main concern.  The first step is always to acknowledge the problem and I have not heard our politicians in Washington or any of the 2012 candidates recognize that our main concern should be economic growth, not symptoms such as debt, health care, taxes, or entitlement programs.  Once our fiscal house is in order, solutions to our symptoms will fall into place.

2 thoughts on “A Conclusion to the Wrong Debate?

    Darren said:
    August 3, 2011 at 10:11 am

    I couldn’t agree more. I’d love to see some kind of “summit on innovation” or something that shows government orientation toward new businesses and job growth. Not only does innovation create jobs, it also presents new solutions to old problems (e.g. a solution to our reliance on fossil fuels) and has a positive snowball effect into other areas.

    Adam Lavallee responded:
    August 3, 2011 at 6:25 pm

    A “summit of innovation” is exactly what we need. How about a joint congressional committee to spur growth?

    I feel that the common response to the unemployment crisis has been that businesses were waiting for the uncertainty to clear in Washington before they began hiring and investing again. I don’t think this debt deal is what businesses were waiting for and I’m not sure I agree with those ideas. But I do agree with you that we need innovation in order to grow. New jobs will lead to lower unemployment, which will leed to more government revenue (the unemployed now paying taxes), which, ultimately would lower the debt.

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