Abstract

This article discusses economic policy decisions that the U.S. needs to make to overcome strong inflationary pressures and other economic problems that could jeopardize the country's long-term economic goal. Economic policy decisions are an ongoing function, but occasionally a watershed situation develops and society must make decisions that will affect the economic system far into the future. The federal government has unnecessarily restricted the operation of our entire economic system. This policy might have been tolerable for another time perhaps the 1930s when economic stagnation existed, but in today's world, even in a country as affluent, creative, and productive as the U.S., one clearly cannot continue to waste our valuable human and material resources. One need to stimulate competition and innovation rather than artificially protecting the status quo. This process should include development of dynamic new industries to replace those that have become obsolete or noncompetitive in an integrated world economy. This more aggressive approach will create jobs, not destroy them, and it will moderate price pressures. It will improve the use of available capital resources. Best of all, it will make our entire system more efficient in contributing to the welfare of all 213 million Americans.