Part 1: Reducing Cost
As self explanatory as this may seem, it is a revolutionary concept for the leaders of the nation. Cost, more than any other single factor, shape the economy. If the commodities of life cost more, then the free discretionary spending that politicians love to encourage their constituents to spend freely quickly begins to disappear. Inflation plays a role in all of these factors but for now, let’s hold inflation equal and look at what can be done if the money supply was held constant.
In this paper, energy is referring specifically to the mass production of electricity. Electricity is the single greatest booster of economy and quality of life on this planet. One reason energy is so powerful is that every modern activity requires it from lights, appliances, communication, and technology, energy is at the center. Understanding how important energy is, if a politician really wanted to help the people, they would do all in their power to get the cost as close to zero as possible. We have witnessed an unprecedented amount of energy killing in the last decade and the effects are blaringly obvious with energy bills per household on average skyrocketing across the nation. Skyrocketing energy prices should never, ever, even in an inflationary environment happen. All research and advancement and public treasure related to energy should be completely focused on more for less, not the inverse of that phrase. Every second of marginal speech about green energy directly translates into less economy and lower quality of life. Weather it is coal, oil, nuclear, wind, water, sun, etc. more energy is better than less and the closer the use of energy can be to zero cost, the greater the economy and quality of life!
Fuel in this context is oil, gasoline, natural gas, coal, wood, etc. Anything that can be consumed to create power and energy. Naturally we like to think that if fuel is more attainable, then energy will be lower but this is not the case and often the state fights the creation of both fuel and energy. A politician who cared about the economy would work as a bi-partisan statesman to ensure that their country was abundant in fuel. Abundance includes the licensing of mining, the building of refineries and pipelines and canals and having trade agreements solely focused on the cheap exchange of goods for fuel. For this paper, the single greatest use of fuel in the economy is for automobile travel. Every cent that gasoline rises directly affects the economy and citizens discretionary spending. The lower the gas prices, the more activity is allowed. This also translates into the price of everything in the economy as shipping costs go down when fuel costs go down. Lets not mess around with fuel costs, down is the only direction they should go for any administration.
Food and Water
Since everyone has to eat and drink, food and water prices are huge in their role in our lives. Food costs can quickly change and when they do, habits don’t playing a quick role in decreasing both spending and discretionary spending. Typically, food prices are stable but when the state gets involved playing God, things can get screwed up. One way the state plays God is by subsidizing the production of food. The state will literally pay farmers not to farm. This may help some farmers, but it always hurts everyone else. If the natural level of milk should be a dollar a gallon but because of state intervention it is two dollars a gallon, then that will hurt everyone who drinks milk not to mention eats cheese, ice cream, butter, cream, yogurt, and other forms of subsidized formula and protein. To ensure low food prices, trade should be well established especially for things like rice from the islands or beans from South America. Trade allows for the most competitive pricing. As for water, succumbing to extremist demanding that reservoirs be drained and aquifers over used, causes a situation where water can become short in supply. Man made drought is a major hazard as California is beginning to understand. Damns and backup water piping should be ensured to keep this required commodity at a low and reasonable price.
The freer the inter travel the more the economy will thrive. Once interstate roads are well built and maintained, then high speed rails, canals, shipping lanes, and easier access the air all allow for a boosted economy. Tourism, trade, visits and commercial affairs all improve the economy of any destination. When checkpoints and papers are required, not to mention poorly maintained infrastructure, it will dampen travel and cause the world to become more like a prison than a playground. Yes, enhancing or lowering the cost of travel is a central hallmark of a high quality of life and thriving economy.
The more competitive the insurance market, the better for everyone. Individuals should be able to go on a nationwide market looking for exactly what they want. Catastrophic only, great! Babies, pregnancy, bandage wounds, great. This is why life insurance is so cheap. There are nationwide options with lots of competition. This is why medical insurance is not. There are confined state wide markets with mandates upon mandates. By freeing insurance to the competition of the market, prices drop and services rise not to mention charities find important and life changing niches in helping those with pre-existing conditions!
By simply removing barriers to entry and deregulating on these critical parts of the economy, costs would go down and the quality of life would skyrocket!