Letter to Congress

The following letter was sent to Senators Hutchison and Cornyn, and Representatives Poe, Paul, and Brady, after the President’s 2008 State of the Union Address: 

With a looming national recession apparent, the Congress has decided to write Americans a bonus check.  I am sure there are many plans and ideas that are going to be pushed into this “Economic Stimulus Package” that are inevitably going to bog down the legislative system.  I regrettably offer some additional ideas that, with a little effort, could be relevant at this crucial point.  These particular ideas, however, are different than most, as these are actions the government could feasibly undertake to assist the economy by taking action from outside the market, where government belongs.

1 – Freeze the upcoming federal minimum wage hikes.  Parts of the inflation problems are due to a stepping rise in the minimum wage; this plan marks the fastest way to devalue the American dollar.  Currently at $5.85 per hour, the minimum wage is set to increase 70 cents in July 2008, and 70 more cents in July 2009 for a total of $7.25 an hour.  These increases have been proven to hurt small business, lower competitiveness and quality of work in the United States, while it moves jobs offshore to avoid U.S. tax codes and federal minimum wage regulations.  Most states have a minimum wage requirement equal to or greater than the federal mandate.  Reversing the federal law and thereby giving control of this issue to the states will help states maintain their own inflation problems and standard of living issues, instead of subjecting states to some federal standard. 

2 – Balance the federal budget.  Fiscal responsibility has always been a conservative ideal, but has recently become lost in the fray.  No new spending should be voted upon until it can be legitimately paid for in the national budget.  This is a truth many families face, and they are expected to maintain a fiscally responsible budget while paying their debts.  As of late, there has been no example set forth by the federal government to encourage mature monetary actions among the American people.  Ironically, the checks most Americans will be receiving as part of an “Economic Stimulus Package” will not do the economy any good if a family uses it responsibly, and pays off their own debts.  Instead, we will be encouraged to “get out and spend it,” which is inherently irresponsible considering the average American family’s credit card debt is over $9600.  Paradoxically, the money being given back to taxpayers was taken from taxpayers in the first place, while promoting the uniform distribution of wealth, and entitlements over incentives.

3 – Support clean energy Research and Development.  While this will require money from the federal coffers, this was key to the Founders’ Intent for our government’s purpose as indicated in Article I, Section 8, of the U.S. Constitution, which promotes the progress of science and the arts.  A domestic investment in energy science, including so-called “green collar” industries, will stimulate the economy, generate jobs, and relax our foreign policy woes in the Middle East.  There are many ways to achieve small goals, all which would benefit through increased Research and Development; I will name a few.  Currently, nuclear power only accounts for 20% of our nation’s energy source, while in France, the burden of coal and oil has been lifted by providing 80% of their energy from nuclear power.  A study by the RAND Corporation shows that increasing our electrical and fuel energy to 25% by 2025 from renewable sources, such as ethanol and bio-diesel, would in turn produce $700 billion of new economic activity and five million new jobs.  The United States spends over $200,000 a minute on foreign oil and accounts for 25% of the global oil consumption, a fraction of which would stimulate growth in the United States, instead of the Middle East.  The demand for oil will continue to grow nationally and internationally, making it more difficult to maintain a congruent foreign policy with the world, as we put our economy in a hostage situation with key players in the Middle East; currently, 97% of our nation’s transportation relies on foreign oil.  Sadly, our government invests roughly $3.5 billion a year in Research and Development.  The Microsoft Corporation spends over $7 billion on R&D, through which their company has grown in leaps and bounds. 

There are ways to stop the “stagflation” our economy faces.  The challenge will be to promote incentives to economic growth, instead of perpetuating entitlements and subsidies, or borrowing from ourselves to pay ourselves.  I believe the conservative ideas discussed will stimulate the economy.  Rewarding responsibility within the American economy will generate the growth necessary to boost the free market.