United States Bolivarian Party

The Recession in the United States

To combat the recession in the United States, we propose three measures:

1.  We propose the reduction in the deficit of the balance for current account and the reduction of the external debt as measures to reduce the recession in the United States. To this end we propose to tax the interests of foreign deposits in the banking system of the United States from those countries with which the United States has a deficit in its balance of current account and in special China.

2.  We propose improving the distribution of income as a measure to combat the recession in the United States. To this end we propose to increase the real wages of workers in the United States in the same proportion that increases productivity.

3.  We propose establishing an office or a government department in charge of the development of new goods and services and in charge to increase the wages of workers in the same proportion in which increase labor productivity.

The first measure would have the effect of increasing the aggregate demand of the United States to increase exports from the United States with those countries which have deficits in its balance of current account. The second measure would have the effect of increasing the United States internal aggregate demand to increase the purchasing power of consumers and reduce corporate saving. The third measure would avoid that the labor productivity increases generate unemployment and recession. Increases the creation of new goods and services, avoid the unemployment resulting from the increases in productivity because that unemployment would be absorbed by the new jobs generated by the production of new goods and services.

The economic structure on which the Confederation of American States that we propose will be organized is discussed in the brief titled:

Proposals for a New Bretton Woods Conference and a Redefinition of the International Monetary Fund and the World Bank

(Theory of Comparative Advantages of Ricardo and Mill Completed)

Walter H. Bruckman
Department of Social Sciences
University of Puerto Rico
Cayey Campus
February 2017

The paper presents the theoretical arguments on which to organize international trade between countries and on which to establish banking institutions in charge of regulating international trade.

The writing can be downloaded for free by clicking here.