One Way Out of America's Economic Slump

One of the major reasons for America's economic slump is the rising cost of fuel. The price of crude oil has dropped significantly over the past few weeks (even though gasoline and diesel have not dropped much), however the lower prices will not last. It's time for a major overhaul, and the technologies already exist to do this.

I typically believe in smaller more efficient government, however there are times when this strategy needs to change. Similar to the Tennessee Valley Authority that was established by the U.S. government in 1933, we need a similar government owned company to handle alternative energy production (among other projects that the TVA were involved in). It's time to spend money to create jobs, and launch the U.S. towards a hydrogen fuel based economy. The first steps will be hard, but the long term affects will be tremendous.

The apprehension by the government to do this is apalling. It also appears that whether Obama or McCain win the presenditial election that neither will do enough to make this drastic of a change. The change can be much easier than it sounds.

This change can either be made drastically or gradually. To break out of the economic slump it needs to be made drastically. Gradual change has not been working, and promoting the use of ethanol (while it seemed good at first), has been a contributing reason as to why food costs have increased. People in the government need to step up and move forward. Enough with short term patches and minor solutions because they are getting us no where. We need the change now.

Oil Company Profits in America

There is something seriously wrong with American oil companies making record profits when the cost of fuel is so high. The logic does not make sense. When the cost of crude oil increases doesn't this increase the supply costs for some of these oil companies? Are these companies profiteering at the expense of everyone?

American oil companies have had tax breaks, and it's time to remove these "gifts". They definitely can cover their expenses because they are making record profits, so there is no fear that these companies will pass on the expenses to the consumers. If they do, then the government should look into this further and try to prevent it.

The next smart thing to do with the extra tax revenue is to invest it in alternative energies. More money needs to be put into these types of programs, and in my next post I will explain a basic idea of how to help the United States out of it's economic slump.