Why an intelligent economic plan is needed to jump-start the economy toward prosperity and economic security?
By Farid Khavari
With a coherent and comprehensive economic plan, a government in any country in the world, in cooperation with the private sector, can create a new robust economy simply by deciding to do so.
Millions of idle workers can be employed and mobilized to build or rebuild cities, infrastructure, agriculture, manufacturing, and countless other wealth-producing activities.
The money earned by these workers would enable them to buy the goods and services they need, consequently creating millions of additional jobs.
But, the problem is that no government and no other candidate have a coherent and comprehensive economic plan.
Healthy economies are driven by demand. The reason economic "stimulus" programs in western economies always fail is that they attempt to solve demand-side problems with supply-side solutions. This always fails to achieve any meaningful improvement and only increases deficits and debt. Building a modern factory to produce a great product is useless if people don't have any money to buy the product. You can't even sell water in a desert if people don't have money to spend.
Ironically, the poorest economies with the highest unemployment have the greatest amount of the most important resource in any economy: demand. Demand for housing, water and sanitation, food, clothing, energy, health care, transportation and everything else is inherent in any population that lacks these things. This demand represents a great opportunity for massive job creation and massive wealth creation for families and the national economy as well, which can be accomplished at a net cost of zero.
When one good wealth-creating job is created, the worker has money to spend. This creates more jobs automatically. Those workers spend money, and more jobs are created. An intelligent economic plan serves as a catalyst to start an economic chain reaction to bring prosperity and economic security to all of the people. The only practical limit to the wealth that is created is how many people are put to work creating wealth.
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