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Monday, June 25, 2012

Recovery : Cost, Benefit Analysis

Barry, My Liege :

It is time to summarize the costs and benefits to the Economic National Security of the United States of all of the 13 specific proposals made in this space to remedy economic maladies facing the United States today.

1. Strengthen Unions

Costs - Some companies will face higher wage and benefit costs.

Benefits - Middle class wages and benefits will rise thereby increasing aggregate demand and GDP.

2. Stop Union Busting

Costs - Some companies will face higher wage and benefit costs.

Benefits - Middle class wages and benefits will rise thereby increasing aggregate demand and GDP.

3. Destroy Monopolies

Costs - Some monopolies and oligopolistic firms will lose monopoly profits.

Benefits - Consumer surplus and economic welfare will increase thereby increasing aggregate demand and job creation.

4. End Free Trade

Costs - Tariffs and protections will raise retail prices of some goods, slightly reducing consumer surplus.

Benefits - GDP will increase by about $ 1 trillion per year by eliminating Balance of Payments deficit, domestic employment will increase.

5. Tax Away Great Fortunes, Great Incomes

Costs - Taxing away great fortunes and incomes will harm the rich.

Benefits - Wealth redistribution will increase aggregate demand and job creation.

6. Create National Industrial Policy

Costs - Some companies which are not chosen as worthy of protection will face increased competition and may fail.

Benefits - By targeting growth industries, our economic future will be more secure.

7. Extend Utility Regulation

Costs - Some companies will no longer enjoy monopoly profits.

Benefits - Consumer costs will decrease, thereby raising aggregate demand and GDP.

8. Install Punitive Bank Regulation

Costs - Some banks will be harmed although depositors will not.

Benefits - Consumers and the economy will benefit from a stable financial system.

9. Keep Social Security and Medicare as they are

Costs - Some additional borrowing may result and some formulae may be adjusted.

Benefits - Keep aggregate demand at current levels; provide secure future for elderly and infirm.

10. Single Payer Health Care

Costs - Some insurance companies will fail.

Benefits - We will provide health care to all and save about 9% of $ 2 trillion per year, or $200 billion, compared to what we spend now on total health care.

11. Follow Keynesian Fiscal Policy

Costs - We will borrow more in a recession.

Benefits - We will have less drastic recessions and lower unemployment rates.

12. Require Media Provide Free Political Ads

Costs - Some media companies will receive less income.

Benefits - Reduce amount political candidates raise, reduce corruption.

13. Encourage Occupy Movement Protests

Costs - Several deaths may result from protest over-reaction by authorities, costs for policing demonstrations will be high.

Benefits - If peaceful political actions fail to provide leadership, it will be the last chance to save the political future of the United States of America.

There you are, My Liege.

That is the list of economic maladies together with proposed remedies and the costs and benefits of each.

We pray you choose your actions wisely.

Your faithful servant,

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