How to fix America's economy & create jobs & prosperity again

Barack Obama and the GOP have done the exact opposite of what is required to fix the economy.
Here is what is needed to be done.


Cut over $1.3tn a year of Corporate Welfare.  
Use that money for massive tax cuts for middle earners and below to increase people's disposable incomes and get bottom up spending going again.
  
Use some of the money for tax cuts for small & medium sized businesses. 

The two above will get recruitment going again. 
Small and medium sized businesses are the true jobs and wealth creators - not large corporations.

Stop bailing out the big banks to the tune of $1.2 tn a year.  
This is increasing the price of things like food & gas, lowering ordinary people's disposable incomes and thus lowering GDP growth.

Break up the Corporate cartels that now operate in each major industry.

Reinstate the Rule of Law in America 
Little guys get long jail terms for minor offenses, while the crimes of Corporate America go unpunished.
  
Scrap Obamacare, which is the worst possible scheme for expanding healthcare coverage and will cost millions of American jobs and make healthcare even less efficient. 
Healthcare premiums are set to rise by between 30 and 100% with the full implementation of Obamacare (it varies a lot by State).

Completely reverse the current policy of sending more and more people to college when they increasingly end up in jobs that do not need a college degree or they have no job at all. 
It is just loading young people up with debt. 

Completely reform the current education system so that people learn how to make a decent living. 

America's Current Death Spiral 

Corporate profits are at record levels. 
So is poverty. 
Real wages are at record lows and continue to decline. 
This trend needs a dramatic reversal and soon. 

Cut Corporate Welfare by over $1.3tn a year. 
Use that money for massive tax cuts for middle earners and below. 
Raising the tax thresh hold from $8,700 to $45,000 would cost $500bn a year. 
Reversing the payroll tax hike would cost $108bn a year. 

Making the Corporate tax rate 25% would be slightly more than revenue neutral, by removing all of the subsidies to large corporations. No tax breaks or deductions whatsoever. 
Make the first $100,000 of profits tax free to give a tax break to small and medium sized businesses (like Singapore does). 

What do you want to do with the rest of the circa $600bn a year we have just saved? 
It can be a mixture of several things, e.g. :- 
Lowering the tax rate for $45,000 to $80,000 of income
Lowering the Corporate tax rate further / tax the next $200,000 of profits at half rate (like Singapore does)
Deficit reduction  


Obama's "recovery" in a set of economic charts 
http://ian56.blogspot.co.uk/2012/11/unemployment.html 

The government is being incredibly stupid. It is allowing the Federal Reserve to be incredibly stupid as well. 
http://ian56.blogspot.co.uk/2013/02/how-government-and-federal-reserve-are.html 


America's debt spiral 
By 2023 :- 
spending will be nearly $6tn a year
the deficit will be over $3tn 
the national debt will be over $40tn
http://ian56.blogspot.co.uk/2013/03/cbo-projections-of-future-gdp-growth.html 

Paul Ryan's budget plan would cause a major depression
http://ian56.blogspot.co.uk/2013/03/paul-ryan-need-to-be-kicked-out-of-gop.html

The list of items that add up to over $1.3tn a year of cuts to Corporate Welfare
http://ian56.blogspot.co.uk/2012/11/it-is-very-easy-to-cut-1tn-from-federal.html

The current bank bailouts are killing America
The current $1tn+ subsidies to the big banks should all be ended to allow much better run smaller banks to fairly compete.
$780bn of annual subsidies to the big banks
http://ian56.blogspot.co.uk/2013/03/the-780bn-of-annual-subsidies-to-big.html
Plus QE3 and QE to infinity.
QE3 is a direct subsidy to the big banks by buying up distressed mortgage backed assets at far more than they are worth at the rate of $480bn a year.
Why current Fed policy is making things worse by increasing inflation and unemployment
http://ian56.blogspot.co.uk/2013/01/the-2tn-of-excess-bank-reserves-is.html

Reinstate the Rule of Law in America
http://ian56.blogspot.co.uk/2013/03/the-heinous-and-serious-crimes-of-obama.html

Obamacare - the American job killer act
http://ian56.blogspot.co.uk/2013/01/the-affordable-care-act-should-be.html

College education policy needs to be completely reversed
http://ian56.blogspot.co.uk/2013/03/the-current-college-education-policy.html

Education policy needs to be completely reformed
http://ian56.blogspot.co.uk/2012/08/how-to-make-dramatic-improvement-in.html

The Corporate cartels that now operate in each major industry need to be broken up :-
Banking
Arms companies. The top 20 suppliers to the US government are consistently making an average of 10% on sales. Name me another industry that manages that.
Oil. The big oil companies have had a decade of record profits, yet still receive sizeable government subsidies. End them.
Pharmaceuticals. America pays by far the highest prices for prescription drugs in the world. Lower the price or go generic earlier. Half the large drug companies are foreign owned and making huge profits on the backs of the American taxpayer.
Monsanto. The Monsanto protection act has just been passed by Congress - reverse it. Ban all ex Monsanto employees from working at the FDA.

Healthcare (soon to be a cartel of a few large companies controlling most of the market with Obamacare).

Updates 09/26

Bad Government Policy By Both Parties Has Deliberately Created the Worst Inequality On Record … And It’s Destroying Our Economy

http://www.washingtonsblog.com/2013/09/bad-government-policy-has-created-the-worst-inequality-in-world-history-and-it-is-destroying-our-economy.html

Who’s Who of Prominent Economists and Investors Say that Runaway Inequality Harms the Economy

http://www.washingtonsblog.com/2013/09/whos-who-of-prominent-economists-and-investors-say-that-runaway-inequality-harms-the-economy.html

And yet none of these economists have proposed the simple steps above to dramatically reduce income inequality. 

Can you guess why that is?