The White House Office of Creative Affairs

TOP 20 IDEAS FROM CHANGE.GOV (Comment 41E)

This comment was made by Leo_F_Collins on the issue of the Economic Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

I and my family are indeed fortunate to be relatively immune to the adverse effects of the current economic recession/depression. I am a retired employee of the Arabian American Oil Company and I am currently employed in the government sponsered Job Corps Program. There are many comments and propositions as to how we may return to a level of normal economic actively. I wish to add to this erudite collection of proposals. The US economy receives two thirds of it’s fuel from consumer spending, therefore it is axiomatic that we put the out-of-work consumers into state sponsored employment, such as inner city housing and building repairs and upgrades. This initial step will generate income for a modest increase in consumer demand, which in turn will ripple-up to a broader group of unemployed people who will then have more economic opportunities to generate income which in turn will increase demand to a higher level et al. The remaining one third of the economic fuel may be generated by a lessening of the tax burden, which will allow those of us deemed wealthy, to invest in the the future of the country and thereby create more job possibilities for our unemployed personnel.

TOP 20 IDEAS FROM CHANGE.GOV  (Comment 42E)

This comment was made by Benjamin on the issue of  Economic Recovery at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

I will bottom line it for you. I am a business owner.
January 2008 I lost $7000 in contracts that had been negotiated and were ready to sign as people heard on the news that a recession was coming.
My business is 100% tied to the news of the day and how severely it is being pounded in.
The saying, “The only thing we have to fear is fear itself.” Bingo.
People are afraid to sign. People are afraid to spend. And I am talking people who are loaded.
My point is: This is a little slow down – with structural issues – that is being amped up on steroids by wall-to-wall 24X7 news coverage.
Do you think everyone in the country would stop buying houses all at once, if the strength and consistency of news on the subprime problem were not so dramatically reported? Do you think that we would have had so many investors jumping on the band wagon in the first place if the news hadn’t been so ridiculously positive?
I am telling you. Literally, the phones at my company will go silent – then – when the news changes one day – I will get a tidal wave of business for three weeks. Many people have severe problems financially. The biggest problem is that everyone who is financially sound is holding back and the economy is falling through the floor. My girlfriend’s job is paying twice what her last one does and offers benefits. He is horrified and is hoarding money.

As for me, I am a businessman. I am picturing all of my competition right now pulling their fingers in, halting innovation, stopping investment, and saying hmmmm…. if everyone else that I compete with does that – and I am investing and working 24 x7 for the next six months…. where does that put me.. on the other end?

My statement is this. Every person right now, has the chance to invest in things that are high physical effort or time consuming – that cost small amounts – but couldn’t be done when the economy is revving ahead and the customers are flying in. So, take the time consuming things that cost little and make those improvements right now. Spend the little bits of money.

I mastered the software that manages my company. I now have made 100% efficient every transaction and automated 45% more of my business. I am doing creative planning and will be ready to launch six new products when a recovery happens if it is half a year away.

What is your competition doing? How can you increase your talent? How can you get ahead? Or worse, what if your competition thinks like me – and right now – your holding back on spending means you are falling really really irreplaceable far behind?

If you have money – turn off the news. Be wise how you use it. But, go to work. Do everything you wished you could do, but never had the time to. Funny thing is, a bunch of small investments in improving everyone’s business or personal life and the entire economy would begin to turn around.

Ask American’s to take the first small step to improving their life – their efficiency – their business?

That’s all you need to do.

Provide assurance that the country will still be here, life will go on six months from now. Just take a little step now. Something that you can work on for a while that will really improve things. Something that you’ve gotta think through a little.

Leadership – lead Americans to put their foot in the door – for improvement, talent advancement, business, and innovation. Tiny steps. Ask them to buy services from American businesses, small businesses especially to get that one thing done that they need to do at some point anyway.

Then – economy turns around. And – talk to the media. Ask them to frame things in a way that is positive and forward – so they don’t create a problem bigger than really exists.
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TOP 20 IDEAS FROM CHANGE.GOV  (Comment 43E)

This comment was made by Ted Ryfiak on the issue of the Economic Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

Will this scenario work?:
The Bottom Up Method
1] Lend bailout money to manufacturing companies – minimal or no interest.
2] Mfg. companies will use money to finance immediate construction of product. [Houses, cars, appliances, clothing]
3] Many new jobs will be created to support this boost in production.
4] Many taxes will be paid to the US by these new employees and businesses.
5] Many loans and mortgages will be applied for, qualified for and paid for – supporting the banking industry.
6] The positive cash flow created from the bottom up will support all other industries in the US.
7] The taxes paid will support the creation of other needed government jobs like road and bridge construction also.
8] The profits made by the sale of the products will be used to pay back the bailout funds.
Stipulations for the above scenario:
1] Manufacturing companies must pay for tooling, raw materials and services as required preventing unnecessary financing costs to create product. This will create cash flow quicker to allow the hiring of new workers also.
2] Wages and benefits must be fair.

3] No bonuses for management until all bailout money is paid back.

Or will tthis one work?:
The Top Down Method
1] Give bailout money to banks and financial institutions.
2] They hire new loan officers to evaluate loan applications for all the new money.
3] No loans are made to citizens because nobody qualifies because they don’t have jobs.
4] No loans are made to small businesses because nobody can afford to buy anything they make.
5] Money is used to play the stock market.
5] Minimal profit is made due to questionable market circumstances.
6] Parties and trips are organized to celebrate the success of the banks – creating minimal new jobs in catering and entertainment industries.
7] More existing loans and mortgages are defaulted on due to more manufacturing jobs getting outsourced to foreign suppliers.
Stipulations for the above scenario:
No stipulations – give them all the money they want and hope they do the right thing.
I do not think the above is very funny because it is too close to the truth.
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This comment was made by Tiffney Mortensen on the issue of the Economic Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

From my perspective, the current economic crisis doesn’t seem to be totally uniform. It’s affecting different industries in different ways. For example, here in the Silicon Valley the chaos isn’t being felt nearly as much as it is in other areas, and I believe that the open, transparent governance and emphasis on meritocracy that companies here emphazise plays a huge role in that.

Right now it seems like we’ve taken the worst of Capitalism (abusive practices toward workers by megacorporations, Wall Street executives hiding lavish lifestyles while their companies falter, banks making loans to people who really shouldn’t be allowed to have them) and the worst of Socialism (stifling over-regulation for moral or procedural reasons instead of prudent governance to create reasonable guidelines and equal opportunity), and this has erupted in a perfect storm. The answer isn’t to compound it by bailing out businesses that have proven their methods don’t work.

Instead we need to take the best of Capitalism (personal responsibility, freedom to innovate, competition) and the best of Socialism (fair play, a sense of stewardship for our society and the next generation, looking out for the little guy) and create an economy that sees itself as a resource dedicated to public benefit. As Adam Smith pointed out, the primary beneficiaries of an economy should be the average citizen. We banter a lot of green terminology around, but maybe it’s time to see that we could “green” our business practices as well. Health care instead of sick care means that companies look out for the well being of their workers and their families, meaning the next generation of workers is being nurtured right now. Businesses should see themselves as only one tree in the forest, and they should recognize that healthy rather than hostile competition will benefit everyone. Frankly, government and business could really take some notes from how Open Source software companies function. Because in all of the chaos going on right now, we seem to be doing just fine!

I’m glad to see an open discussion taking place, although I don’t know how effective a conversation can be when you literally invite the entire nation to participate. It’s too easy for the roar of voices to become deafening. But still — it’s a move in the right direction!

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TOP 20 IDEAS FROM CHANGE.GOV  (Comment 46E)

This comment was made by J Michael Machacek on the issue of the Economic Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

Number # 1 issue is to leave Iraq successfully and because of the shape of our economy it would behoove the US to bill this war to Iraq accordingly for the time and materials spent on liberating this country, this could mean hundreds of billions of dollars or an equal amount of oil in lieu of currency.

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TOP 20 IDEAS FROM CHANGE.GOV  (Comment 47E)

This comment was made by Anthony Gomes on the issue of the Economic Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:
I realize that the common theme for suggestions to remedy the economic crisis focus on the bailouts. My suggestion is in an entirely different area. The country has been at war for the past eight years on two different fronts. A whopping majority of the millions of Veterans from these wars are middle class. Yet, the GI Bill only provides assistance for college education.

My suggestion is to rapidly institute financial support for Veterans that want to start or expand their businesses using their GI Bill. After all, many of us are too old to return to school or have families that require a much higher income than even the new GI Bill provides us. So much of these funds that we have obviously earned go unused.

Turning this generation of Veterans into entrepreneurs will:

- Create jobs through new small businesses.
- Increase state and local government economies.
- Give the middle class a boost the same way it did after World War II.

If you would like suggestions on ways to implement, please feel free to email me.

Number # 2 issue is to renew relations with Cuba just 90 miles away from our country and to start exporting food and materials from our US companies to help equal our Import deficiencies thus helping our economy.

Number # 3 issue would be to put into law a ceiling on consumer Bank credit cards, if we are to bail out these Banks at a min. interest rate paid by the tax payers then a fair interest rate should be given back to these same tax payers who are footing the bill!

Number # 4 issue and lastly, make the “Big Three” auto makers a “Big One” and dispose of all the poor selling models and concentrate just on the name plates that sell, call the company “USA Auto” and compete with all the foreign auto makers on a level playing field.

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TOP 20 IDEAS FROM CHANGE.GOV  (Comment 48E)

This comment was made by Alex Alexander on the issue of the Economic Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

This downward spiral of our economy can not and will not be stopped by either government alone or money alone. Americans must get to work to get this economy working.

This is not a new policy or plan it is a spirit.
A spirit of selfless service and sacrifice is here which will activate Americans, galvanize our resolve to join in the work, stay committed, strong, and remain faithful to our country through this tremendous undertaking.

What we have come up with presents the opening for a complete paradigm shift in the minds of the American public.
No longer do we act irresponsibly and wait for the government to save us.
No longer do we rely on the top of the financial structure to guide our economy.
No longer do we blame and shame, that day has passed.
We now remember we are the government and we must save ourselves even if it is from ourselves.
We now educate ourselves about our financial responsibilities.
We now look forward with a new knowledge.
Fresh from the tough experience we are not burned by the fire.
We are strengthened by the strain.

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TOP 20 IDEAS FROM CHANGE.GOV  (Comment 49E)

This comment was made by sarah anderson on the issue of the Automotive Bailout at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

We all know the auto industry is shrinking. I propose the government gives a tax credit to individuals to use with the auttomakers to convert their current automobiles to alternative energy. This gives the auto makers money while at the same time converting their infrastructure to support these alternative technologies such as natural gas, bio-fuels, electric and fuel cells. This allows US citizens to help solve their own fuel cost issues as well as move our economy in the direction that has been set by our president elect. Let’s face it, we can’t all buy a new car. This solution keeps us from filling our landfills with out of date vehicles, immediately addresses the environment and fuel issues and allows all of us to be part of the solution. Also, it makes it possible for the automakers to immediately re-purpose some of their infrastructure. This offers a much larger market than simply the market of new car buyers and therefore is a way to expand a shrinking business. This is not the whole solution but it should be part of it.

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IDEAS FROM CHANGE.GOV  (Comment 50E)

This comment was made by Nori_Mizuno on the issue of the Mortgage Crisis at http://change.gov/page/content/discusseconomy. Please feel free to comment on it in the box below:

For the housing crisis that is currently going on, I propose a bottom-up approach in which TARP money be used to buy up 1 – 2 million houses in forclosure. The Federal goverment buys houses in foreclosure at 90% of the mortgage balance and interests in arrear, thereby releasing those non-performing assets from bank portfolios and MBS portfolios at 10% loss. The remaining debt, if any, will be trasnferred to the accounts for individual house owners that will be maintained along with their IRS accounts. In the long-run, those unpaid debts should be paid back as their back tax should. The homeowners will become a renter but they are allowed to stay in the house. Monthly rents may be collected by state or municipal agencies. Over the period, the ownership of the houses will be transferred from Federal to states or municipal agencies that have expertise in managing and maintaining the rental houses. I estimate the total cost of taking over 1 million houses would cost approximately $250 billions. I believe that will clean up the bank balance sheets and increase liquidity of MBS and CDO in relatively short time while assuring homes for many families under distress.

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