We have huge blindspots Most of us want to become better at what we do or become a better person in general. The problem is that we have too many blindspots for ourselves to really find out what we really need to work on. When something goes wrong, we can think of a hundred external [...]
You cannot lead effectively if you worry about yourself This week I was playing a game of full-court basketball with my father. Unlike my Co-founder Jun Loayza, I am not good at basketball because I never really trained in the basics of dribbling, manuevering, and strategies. As a result, everytime I am point guard, I [...]
Here’s another article that I personally think is pretty insightful, but long and boring so no one will actually read (and of course it could be obvious or foolish instead). I’ll do my best to keep it short and digest-friendly though. I do feel this topic is VERY important since the economy is going to be entirely restructured in the next two years, and how it is done is extremely important.
To start, the US government is said to be $65.5 Trillion in debt. For perspective, this is more than the world GDP for one entire year and four times the US GDP for one year. In other words, the US Government literally owes the world to other nations.
Right now the federal government is behaving like its US citizens who borrow from tomorrow to solve today’s problems. The US borrows money from other countries to help the irresponsible people and companies clean up the mess they made and hope to “one day” be able to pay it back. As you know, when the people couldn’t pay back their debts, they go bankrupt, and the banks die along with them. If the US keeps getting more debt without promise of making MORE money back, it will end up bankrupted too. The other countries will then end up like failed banks and die too.
Now I’m not a doomsday person, and I like to stick to positive and actionable steps, but I do want to emphasize that in this environment EVERY dollar must be spent to its maximum efficiency. I guess we could call it Stimulus Optimization.
What the government should do
I’m going to give you what I believe is the best strategy for Stimulus Optimization, and then layout the logic that got me to this point.
1. Money should stay circulated in old lower income males, small businesses (but not large corporations), social enterprises and non-profits.
2. Money should be put into industry-creating technologies, but not just for technology development but also the commercialization of the technology. The government should support tons of startup people but pay them just enough for them to survive.
3. Money should be put into essentials of society like Education, Healthcare and Tech Infrastructure.
Some of this may seem unintuitive, or possibly biased/humanitarian, but I do believe that this is most economically efficient. Let me explain why.