When President-elect Biden proposed his latest economic recovery plan, the intentions of which are sound, but therein lies potential setbacks to genuine economic stabilization of our economy. We have to point out that any increase in basic wages may sound like a dream come true for millions, but on the contrary, consumer goods have always increased proportionally to any increase in income. Case in point: When the Alaska Pipeline was being built, wages for the average construction worker were around $80,000 per year. What was not easily explained was the fact that rent, food, and even gasoline for commuting also rose correspondingly. The bottom line is the fact that these construction workers barely had enough disposable income to actually have a net gain on their financial situation.

After years of bogus policies coming out of Washington, it has been these policies that have greatly curtailed most of America’s ability to achieve the American Dream. Even before this pandemic, the public’s ability to keep pace with inflation was greatly hampered by economic policies that have favored and continue to favor the 1%. The results are amazing. The largest wealth disparity gap in history continues to widen. Every city across the country is facing budget deficits at record levels. The tax base has already been reduced to its lowest level in history. And we should all know what all this means. The safety nets that millions of Americans cling to are also letting more and more people drown in a sea of ​​despair.

When you put in what has happened to the once-great American economy due to a history of trickle-down economic policies, the takeaways are: we have record foreclosures every year, more people falling below the poverty line, more acute hunger, more disease and that’s not counting this pandemic, and more homeless people. These are all the results of what has been allowed to happen over the years because of the failure of our governments to stand up for the American public.

Now when we have a new president who seems to realize the pathetic state of our nation, it should be a good sign of things to come. But, this new Administration must understand that this $1.9 trillion stimulus proposal is short-sighted. One of the main focal points is the increase in the federal minimum wage. This is like putting the cart before the horse analogy. There must be policies in place prior to the approval of any increase in the federal minimum wage. When wages are rising and the goal is to lift people out of poverty and help them become financially stable, we need to realize that consumer prices have risen and, in fact, rise proportionally to wages. The net gain for individuals amounts to zero if we do not address this vital fact.

To improve the ability to increase net income gains after wage increases, there has to be a moratorium on price increases for consumer goods, rents and interest rates. Not only to improve financial stature, this policy must be implemented during the next 12 months. This is until the majority of Americans can finally catch up with the escalating rate of inflation that has and will continue to subject more and more of our population to near-irreversible financial damage if we don’t understand the consequences of not addressing this fact. .

The United States, under this new administration, has a golden opportunity to restructure the entire American economy. One that works for the people and not just the 1% either. This $1.9 trillion stimulus proposal is a good start. But, it is only a beginning. What is needed beyond this is a comprehensive national economic reform agenda. A definitive plan of direction that propels America into the future. This is something this nation has not had in over 60 years. The Ten Articles of Confederation of the National Economic Reform is that plan. A Biden presidency could be one that leaves a nation well placed and poised to once again regain its stature as a leader on global affairs. It all depends on the health, economic growth, and financial stability of all Americans. That is the understanding that will occur if we act today and implement this concise management plan.

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