Ok so this is my idea for how to fix the messed-up USA economy in one step. Note: I'm not an economist, so if you have any critique, pls be nice! It's just an idea. Anyway, although a simple idea it seems to me that this would work......
This is also the only thing I can think of that both Dems and Repubs can dare to be seen agreeing on. Reason why? It's patriotic.....
Create a nice fat "imported goods and services sales tax". 5-10% extra. It only applies to goods and services bought from overseas. You buy stuff made in USA, it's the same price. You could even trim the sales tax on goods made at home by a point, just to add to the feelgood factor and encourage support of American businesses.
Companies who outsource labor, putting Americans out of work and giving USA money to other countries just to save a buck... tax em! All those companies who have foreign tech support.. you think they're patriotic? All they care about is cutting costs, even if it means sticking it to Americans with second rate, cheap support. Call their support number and ask the service rep what country they are in, you know it's wherever is cheapest.
People that buy cheap Chinese goods made for prices so low it is putting Americans out of work... tax em! Walmart and all those other companies - you think they are proud to be American? Give me a break! They will buy whatever is cheap, and sell it for whatever they can get. They don't care what country they buy from, so long as it is cheap. Can't you see how this is hurting the USA?
An imported goods and services tax will:
a) encourage people to buy American made goods.
b) The increased demand then creates a lot of USA jobs, thus creating more wealth which can be spent at home.
c) The tax also generates a lot of direct revenue which will fill the coffers and help pay the nation's massive overdue bills, reducing the need to cut medicare, schools, etc etc.
d) It will massively reduce the trade deficit and put things back where they should be; people from other countries should be buying high quality goods that were made properly in the USA, just like they used to be!
Who will dare to disagree with this? You could tease them about being "Unamerican" if they do! I mean... you don't actually prefer to buy stuff made in China when you could be supporting USA businesses, do you? I thought you were proud of your country!
Another good thing about this is that the tax will be balanced fairly across rich and poor. The rich buy more crap, so they will get taxed according to what they spend on foreign goods. And everyone has the option to opt out of this tax, whenever they want to, simply buy buying American!!
The reason behind this is more about common sense than patriotism. Ultimately, the only way for a nation to generate revenue is to create goods and services, and direct buyers towards those goods and services. The USA is being killed by cheap foreign imports. It is inferior, and everyone knows it, but people buy it to "save a dollar". But the hidden effect of their action is that their money has now gone abroad.... meaning that this country is worse off. Their dollar has effectively fallen out of a hole in the bottom of the bucket, instead of circulating around and staying in the USA. In other words, their action came back to bite them on the butt! Alas no-one sees or understands the connection and the hidden effect of buying cheap foreign goods. Not only that, but the cheap foreign stuff breaks really fast anyway, meaning that you need to buy another one. As the saying goes, buy quality goods and only weep once...... IF YOU ARE AMERICAN, BUY AMERICAN!
Buy local! And remember the words of Gil Scott Heron R.I.P.: "When the producer names the tune, the consumer has got to dance."