(ThyBlackMan.com) On Sunday,September 9th, having been invited by a representative of the New Nation of Islam in Detroit,I interviewed with “the Son of Man” at A Community Meeting With Detroit via the telephone. The representative who contacted me indicated an article written by me for ThyBlackman.com titled; “Thank God For White Folk” interested them, thus the reason for the interview. The interview would be a great opportunity to talk about the Davis Deficit Neutral Stimulus Plan, a job creation plan I have been championing for over a year and a half.
The representative for “the Son of Man” said the radio broadcast would reach an audience of an estimated 250,000 listeners. Therefore, I acquiesced to the
interview. However, in the midst of the interview, I found myself bombarded with a pro-Obama lecture by “the Son of Man,” and was given little opportunity to present the job creation plan I thought he and his audience wanted to hear.
Nevertheless, pressing forward, eventually, I was able to tell him and his
audience of the job creation plan, which I feel, would end the current 
economic downturn. (You may see the job creation plan @ http://www.sslumpsum.com). Finally, at the very end of the broadcast, which lasted approximately 3 hours, “the Son of Man” said, “The Davis Plan made sense.” One of the things I was not able to do during that broadcast, however, was to articulate to his audience why I thought the Davis Plan was needed. Therefore, I want to take the opportunity to do that here in this article because this might enlighten, not only his audience, but many of you.
An elementary understanding of the American economy is helpful in understanding why the Davis Plan is needed. To understand the U.S. economy and what makes it run, you have to look under the hood and identify the major components of its engine. Those components are consumer spending, government spending and exports.
Of these three major components, the consumer is the most important, as the
consumer represents approximately 70% of the economic activity of this economy.
What does that mean? It means any job creation recovery plan will have to
involve the consumer in a big way. It also means we are a consumer driven
economy and not an export economy, like China, which depends primarily on
shipping goods to other countries. We also are not an economy, which survives on government spending. These two components, government spending and exports make up in part the 30% of the economy’s activities.
While government spending and income from exports are important, the consumer is the primary driver of this economy. Think of it this way, the fuel used in your car is gasoline and ethanol. The gas comprises about 90% of the mixture. Take away the gasoline and the car does not move. Your car is not designed to just run on ethanol. That is the way the American economy functions, also. If you reduce the amount the consumer spends in this economy, the economic engine of this economy stalls.
This is why our economy is sputtering, due to the reduced purchasing activity of the consumer. Most American corporations are in great shape financially with solid balance sheets and products ready to sell. THEY JUST DON’T HAVE
CUSTOMERS!If they don’t have customers, it hard to make long-term hiring
decisions, thus unemployment rises. Demand starts with the consumer! We do not have a corporate, middle class, or upper class tax problem. I tell you straight forward, what we do have is a problem of long-term customer demand for products. Politicians of both parties are advocating solutions which will not immediately address the problem of consumer spending.
Mr. Obama and the Democrats want to expand an already stressed budget with more spending by hiring teachers, firefighters, police officers and construction workers to repair our infrastructure. While this is a great idea, as no one can argue our aging infrastructure does not need to be addressed, the federal government cannot hire enough workers to kick-start our economy.
There are over 23 million or more people who are not working. Their plans do not put money directly into the hands of the consumer, who is the key to restarting this economy. He and the Democrats also advocate increasing taxes for the wealthiest of Americans, granting tax breaks for small businesses, and extending tax breaks to “green energy companies.” Can you find where the consumer is in any of these initiatives? The Republicans’ advocacy of giving more tax breaks to the wealthiest of Americans, lowering the taxes of businesses, getting rid of “Obama care,” and cutting the budget does not accomplish putting money into the consumer’s hands either. We are no better off under Mr. Romney’s plans! As I have stated, the problem is not the budget or Obama care, it is customers for American products and services!
Is the Davis Deficit Neutral Stimulus Plan ( http://www.sslumpsum.com ) flawless, when it comes to addressing the issue of empowering the consumer monetarily? No, it is not. One of the main problems with the plan is that American workers will over the long haul draw more money out the Social Security Trust Fund than they put in and there are fewer workers supporting each retiree than it was in the past. That is why 20-21 years from now “the Fund” will start experiencing shortages. However, “the Fund” is worth 2.7 trillion dollars at this time. Can the problems associated with the shortages be fixed? Absolutely, the problem of ensuring the Social Security Trust Fund is actuarially sound can be resolved, if we start working on fixing the problem now and not wait ten to fifteen years down the road.
There are a number of innovative ways this can be done without privatizing the Social Security Trust Fund. What is important for you to note is, that unlike the recommendations of our two political parties, the Davis Plan “DOES” address the issue of directly engaging the consumer, and putting “MONEY” directly into the consumer’s hands, who is the only group who will ultimately pull us out this horrific downturn. Without the participation of the consumer in any recovery plan of job creation, you yourself can see, we are doomed to be mired in this swamp of high unemployment, because the consumer represents 70% of the activity of this economy. This is why the Davis Plan or something similar is needed!
Staff Writer; James Davis
More information about JD and his Deficit Neutral Stimulus Plan Can be founded at http://www.sslumpsum.com.
