Pres. Barack Obama and leaders of other world powers apparently agreed in a meeting at Camp David Saturday that the world needs two things to end the current economic crisis - grow industry and cut the debt that exists. That sounds like a good idea but how they attempt to do it will determine whether or not they will be successful.
Growing industry is the No. 1 solution. It will provide wages and good livelihoods for everyone. And in the long run, it will provide more tax revenue on which the government can operate.
Industry and business is where the people in all classes of society get their money which is what they need for productive lives. Cutting the debt is more political.
But there are ways in which cutting the debt can do the job. If the government cuts the budget enough to balance it and pay off past deficits, it can help very much.
But if the government raises taxes to cut the deficit, then it will cut the growing of industry, which is a non-gainer.
Communism was designed to solve all economic problems with government control that would spread the wealth to all of the people. It did not work because there was not enough freedom to develop ideas that would benefit the economy.
Private enterprise uses the peoples’ imaginations to create wealth themselves that can improve the economy overall. And that can increase the ability of government to serve its purpose of protecting the people’s way to make use of their inborn intelligence to expand our economy and make our entire society better off.