Ideas to Fix Financial Markets and the Economy

1. Rollback Obamacare.  Everyone is overestimating the consumers strength in 2016 in light of cheap oil, however, healthcare costs have risen between 200-400%.  The uninsured now have a regular budget item for healthcare, an exponential increase in their annual costs.  The middle class have seen their healthcare costs double to quadruple under high deductible plans.  This is going to usurp all of the savings from energy. Add to that stagnant wage growth and the average American Cunsuner is worse off today than when Obama vowed to enact “Change”. 

2. Dodd-Frank has had the perverse consequence of making the government the lender of last resort, instead of the banks.  The financial system will not be healthy until government debt is reduced and the banks are back to lending and making money. 

3. End global coordinated central bank actions.  The system needs to reset to natural equilibriums. It will be painful, because it should be painful.  We are only delaying and building the size and duration of the pain we will eventually endure. It will be hard for banks to make money with central bank maniputaluton of interest rates and currencies. If banks cannot make money, then you have a new systemic risk in capital markets.  Fees on transactions and deposits increase. This is simply another form of negative interest rates. 

4. Shift the tax burden from the engines of wealth creation those who hoard wealth via multi generational planning and oligopolistic philanthropy. Lower taxes that impede corporate profits and labor’s net income. Few great Americans were born with hundreds of millions or billions of dollars.  A cushion is a great legacy, a multi generational balance sheet bigger than some countries is not good for global capital formation.  Particularly since accumulated wealth generally ends up stuffed in low risk investments. Ironically wealth is not created by taking just a little risk. In addition, vanity philanthropy does not always help those most in need.  It does help those most in need when a wealthy family determines they are most in need.  

5. Washington needs to invest in education, population demographics, and immigration.  Sure fire way to grow an economy and stimulate capital makers is to create more higher earning, better educated consumers. 

6. American labor needs to be reminded that America was not made great by working 9-5.  That a regular work day is a privledge and a responsibility of a wealthy nation.  Work-life balance is great for some, but there needs to me more among the next generation who have incentive and drive to build the next wonders of the world.  Certainly in a country with slowing population growth, we need to see productivity 


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