Stating a Path Forward

          In the midst of the non-starters called the State of the Union, I heard a few possibilities for a way forward strategically (although not politically).

Critics of our economic policy contend that we may end up like Greece. Not a chance. We are too vibrant and innovative a nation for this outcome. However, we certainly are becoming like Japan. In the 90s, Japan was poised for economic dominance in the electronics and finance sectors. But they have slipped from the world’s second largest economy to 24th, and their debt ratio to GDP is 230%. Why did this vibrant economy tank? Their government seized up and refused to make the tough choices needed to reform and move them forward. For Americans desiring their “side” to win at the expense of the other “side”, knock it off. If we don’t all move forward, we all lose.

It is unclear what direction Obama will actually devote energy towards, but he could jump start the economy with a few focused directions in structural reform and human capital investment. Since the Pope is quitting, I’ll put on his hat and provide some “if I were king” recommendations to the powers that be:

1. Energy- Convert the country to natural gas, since we are the Saudi Arabia of natural gas production now. Might as well use it. Bring in the oil from Canada and shoot for energy independence from people who hate us. Build more refineries. Why the hell do we have to send oil to Texas? Those refineries are knocked offline during every hurricane. Put more Americans to work in the energy sector until decentralized solar disrupts the whole damn thing in around a decade from now.
2. Tax reform- Get off the tax rich people bandwagon and onto the major overhaul the 73,000 page tax code bandwagon. Think Ronald Reagan. Lower the corporate rates and close the special interest loopholes. Create a new taxation category for small business to separate it from personal taxation and provide incentives for business creation. Fast track and incentive-ize business start-ups, hiring, and investment.
3. Infrastructure- We need to move away from infrastructure projects funded with taxpayer money. An infrastructure bank would create private/ public partnerships and toll-based building projects which could efficiently create thousands of new jobs, as well as keeping our bridges from collapsing.
4. EU trade agreement- A little recalled and less understood point was made concerning next years EU free trade agreement talks. This announcement is a blaze rather than a glimmer of good news. This trade agreement represents the consolidation of 50% of the planets production capability. Goods and exports could be manufactured and transported at per unit costs rivaling China. If handled wisely, this agreement could make the US-EU the most powerful economic zone on the planet and add millions of new jobs to supply emerging markets.