Welcome to the latest series at the wildly popular JosephSangl.com: “5 Things That Will Help Fix The Economy” In this series, I will be sharing some principles I believe will help fix the economy long term.
The economy has been stuck for some time. The words “Great Recession,” “Fiscal Cliff,” “Sequestration,” “Stagnant,” and “Jobless Recovery” have become common everyday language.
Number 4: Incentivize Innovation, Job Creation, and Education (Especially Money Education)
Economies that possess highly educated people who focus on developing emerging technologies are the ones who help drive job creation. For this reason, it is essential that countries incentivize this because it will result in global economic improvement.
There are so many great areas where we need innovation:
- Transportation: Rapid transit and mass transportation
- Energy: Electricity, Oil, Gas (improving the old ones) and Renewables (replacing the old ones)
- Housing: Improving efficiency and building materials
- Education: Improve teaching and learning methods – especially providing experiential learning and connecting theory to real-life application
Here’s why money education is so important:
People without sound money knowledge will do the only thing they have ever seen done with money – spend it. They will spend every dime they have earned, then open a credit card and proceed to spend all of the credit limit also. This WILL help power an economy – but only for a very brief period. Very quickly, those people who have little money knowledge will run out of spending power and have to repay their debts. This causes economies to experience short-term massive expansion followed by years of stagnant growth or even contraction. Sound familiar?
While steady growth is not nearly as exciting as massive expansion, it is sustainable. That sounds like a good deal to me.
Read the entire series (available after 3/14/2013)