1.) Find a way to help people deleverage.
Inflation is the way to do this. And by the way, yours in the only really spot-on point in this thread so far.
What is needed is not any lowering - lowering of costs, etc., but massive increases. Increases in government expenditure, increases in economic activity, increases in wages, increases in fiat money being created and spent.
Here's the program:
1) Start printing money. Massively.
a) use it to buy up mortgages and forgive them
b) buy up all credit card debt and student loan debt and forgive it
c) buy housing and take it off the market. buy whole neighborhoods and tear them down.
c) buy the Euro and the Renmenbi like a mother.
d) buy long term Treasuries till the rate on the 10 year is zero.
2) Institute massive government works projects - the 1.5 trillion mentioned above isn't bad, but it should be quite a bit larger than that. I envision replacing all the nation's bridges (requiring union wages at at least $35/hour minimum, and american made 100% on any products, machinery, or supplies used), new subways and rail, power plants, etc.
3) Set up a generous dole of around $1,200/month per US citizen, regardless of location.
4) Full national health care with private health care made illegal
5) increase taxes on the rich to approximately double their current levels (this has no effect on growth obviously)
6) Lower the legally mandated working week to 32 hours initially, with double time required after that.
7) Institute a $15/hour minimum wage.
You wouldn't happen to be someone parodying a liberal, would you?
