Solution to the Financial Crisis

Government spending will not get us out of the current financial crisis, only growth in our economy will do that effectively. Deficit spending raises the risk of inflation long term, growth in Gross domestic products can increase revenues but that takes jobs and spending. Our economy is 67% driven by consumers, but our income distribution is too slanted to the upper income families or tax units.

According to the Tax Foundation in 2006, the top 10% of Tax filers controlled 46% of the 8 Trillion dollars of income reported, that is some 3.8 Trillion dollars. The top 10% of filers consisted of some 13.6 million taxpayers.

Considering the studies that show the average American's compensation has been stagnant since the middle 1970's, trickle down does not work. The movement of the wealthy out of the stock market and into commodities, and hedge funds during the last decade also lead to the curtailment of venture capital into small businesses.

The well off and conservatives fear that our leaders will move to Socialism but I think of it more like fishing. The more lines in the water: the more chance of catching something. You have to get consumers spending if you want growth when the economy is driven by consumers.

Joe