Part II: A Possible Policy Roadmap for US Economic Stability

 Explore a possible policy roadmap for US economic stability. This plan details potential solutions for the $37.4 Trillion $ national debt, which includes fundamental tax reform to address corporate subsidies and wealth loopholes, strategies to fight supply-side inflation, and policy moves to counter de-dollarization and secure US global influence.
USPolicy FiscalReform DebtCrisis TaxReform CorporateWelfare MinimumWage EconomicStability DeDollarization GlobalTrade SupplySide PolicyRoadmap



The transition from economic challenges to sustained stability would probably require a multi-pronged strategy that addresses fiscal insolvency at home and financial competition abroad.

1. Economic Stability: Debt, Inflation, and Tax Fairness

Addressing the massive $\text{\$37.4 Trillion}$ national debt and its soaring interest costs is the foundational requirement:

-Securing the Federal Balance Sheet: Policy could require a combination of spending reductions (like Entitlement Reform by adjusting benefits or eligibility ages for Medicare/Social Security) and revenue increases. This could be achieved through implementing Fiscal Consolidation measures like raising corporate taxes, potentially imposing a VAT, or limiting tax loopholes.

-Tax Reform: The U.S. tax system faces a fundamental challenge due to an abundance of exceptions and loopholes. Policymakers should target this two-fold problem:

-Wealth Income Loopholes: The code disproportionately benefits the wealthiest. Reforms could include eliminating the "step-up in basis" loophole for inherited assets and/or taxing capital gains and dividends at rates closer to ordinary income.

*Corporate Welfare Subsidies: The system provides numerous indirect subsidies to large corporations (including Big Tech) through generous tax credits (e.g., for R&D), accelerated depreciation rules, and massive direct grants. Reviewing these provisions could reduce corporate welfare and increase federal revenue.

-Fighting Supply-Side Inflation: Beyond Federal Reserve rate hikes, the government could employ fiscal tools like Targeted Deregulation and Supply-Side Policy. This means unleashing energy abundance, cutting regulatory red tape, and easing housing restrictions ("Yes In My Backyard" policies) to boost supply.

-Tariff Review: Policymakers should review and potentially roll back new broad-based tariffs (like the 10% reciprocal tariff) or the specific 100% threat to BRICS. This would lower import prices, reducing a major source of cost-push inflation.

2. Managing Structural Change (AI, Labor, and Wages)

-AI Disruption & Workforce Training: The government should modernize the U.S. workforce system by rapidly expanding Workforce Training and Digital Literacy, focusing on developing AI “fluency" and technical skills to adapt to automation.

=Wealth and Wage Policy: Policymakers should address income distribution. This includes reviewing the minimum wage and strengthening collective bargaining to shift the hidden subsidy burden away from taxpayer-funded assistance programs (like SNAP) and back to profitable corporations. Continuing reforms, such as increasing the Earned Income Tax Credit (EITC), could support low- and moderate-income workers.

3. Restoring Global Financial and Geopolitical Dominance

·         -De-Dollarization Strategy: A two-pronged approach would probably be needed. The U.S. could strengthen Dollar alternatives by ensuring financial stability. Concurrently, it could counter BRICS Alternatives through diplomatic pressure and potentially imposing prohibitions on dual participation (threatening loss of SWIFT access for institutions using rival systems).

·         -Geopolitical Fragmentation: The U.S. could move away from purely unilateral trade policies to re-engage Allies. This involves strengthening multilateral institutions, reforming the WTO, offering alternatives to BRICS/China financing, and coordinating with allies on export controls.

-Global Leadership Vacuum: Re-establishing credibility would require a commitment to Consistent and Predictable Foreign Policy, avoiding abrupt shifts like unilateral tariff threats. This strengthens the rules-based order.

By taking decisive action across these three fronts, the U.S. could stabilize its domestic economy and maintain its vital role in the global financial system.. SNP

Comment below, what’s your take? Like and repost.

For information only and not a recommendation to buy or sell shares.

Comments

Post a Comment

Popular posts from this blog

Are We Witnessing the Seeds of Revolution?

Image
 Historical and economic lens on today’s rising inequality, taxation, and trade tensions—examining whether current conditions echo the unrest that sparked revolutions of the past.   Tariffs, Tax Policy, and America’s Growing Divide As 2025 unfolds, a cascade of economic changes is reshaping the American landscape, raising questions about the nation’s social stability and the potential for upheaval. With new tariffs driving up consumer prices and tax policies favoring the wealthy, the United States is experiencing a widening divide between the “haves” and “have-nots.” Are these the seeds of revolution, or simply the latest chapter in the country’s long history of economic cycles? Tariffs and Consumer Prices: The New Tax on Households President Trump’s renewed tariffs in 2025 have quickly made their presence felt in American wallets. According to the Yale Budget Lab , the average U.S. household is experiencing an effective income loss of around $2,000 in 2025 due to the...
Read more

CARBON CAPTURE & STORAGE (CCS)

Image
 Climate change remains a defining challenge of our time, and mitigating its effects requires innovative technology and considerable effort. Carbon capture and storage appears as a promising means to reduce greenhouse gas emissions significantly. Let's look at the overall function and potential of carbon capture technology, along with introducing two landmark projects that are set as new milestones in this crucial field. Carbon Capture and Storage (CCS), as the name suggests, is a technology that seizes carbon dioxide (CO2) emissions from industrial and power generation processes. This method prevents emissions from entering the atmosphere, thus contributing to the fight against climate change. Once captured, the CO2 can either be permanently sequestered underground in geological formations such as depleted oil and gas reservoirs, saline formations and/or unmineable coal seams. Also there is the option of converting CO2 into a range of products such as methanol, which could fu...
Read more

Junior Mining: Potential Takeover Targets 2025-2026

Image
Canada’s junior mining exploration sector is witnessing a surge in merger and acquisition (M&A) activity, fueled by soaring metal prices, major miners’ need to replenish dwindling reserves, and the strategic value of critical minerals like Uranium and Copper. Industry trends and recent deals suggest a wave of takeovers is likely in 2025–2026, with Junior companies—typically valued under C$500 million—emerging as prime targets due to their exploration assets and lower regulatory scrutiny under Canada’s tightened Investment Canada Act (ICA) rules.   Confirmed Takeovers Signal Momentum (Several high-profile deals are underway J   -Sierra Metals (TSX: SMT), a mid-tier Canadian miner with exploration assets, faces a C$1.15 per share all-cash takeover bid by Peru’s Alpayana S.A.C., extended as of May 1, 2025, with conditions nearing waiver.   -On March 21, 2025, Mayfair Acquisition Corp. (TSXV: MFA.P) launched a securities exchange bid for Gold Basin Resources (T...
Read more