Helping the Economy is not that complicated

This blog is designed to help the small business owner cope with the inevitable issues that constantly surface. While most posts will be focus on actionable business activities, the macro economic environment now suggests that we as business owners must take an active role in making sure that the overall business climate improves. What frustrates me the most is that many issues are not that complicated.

Case in point is the debt load being loaded onto the US tax payer. Some of this debt appears to be required to stimulate the economy. I understand that. What I do not understand is the continuing transfer of money from the US to oil producing countries that in general do not like us much. Where is the rational outrage and national drive to stop sending money to people who wish us harm.

Reducing our payments to these countries ($700 BILLION in 2008) is basically free money. But how do we this? It is not that compicated - we use less oil. How do we do that? It is not the complicated - we drive fewer miles in more fuel efficient cars. So how does this happen?

First, last spring's run up in oil prices pushed us to drive fewer miles for the first time ever. So there is now a proven (as well as intuitive) correlation between gas prices and miles driven. Let's tax gas prices back up to the $4/gallon and take that money and pay ourselves in any number of ways. I favor a reduction in FICA, but any tax cut works. You may claim that $4/gallon hurts our standard of living. If we make no changes it could. But if we are smart, it would have minimal impact on our standard of living and we still get that tax break. Here is how. Say you drive an SUV that gets 15 miles per gallon. If you replace that with a Prius at 45 miles per gallon, which works for 90% of your driving I bet, your gas expense is the same if gas prices triple - and yes, you still get the tax break. Suppose you say, I am tired of funding the terrorists nations and decide to walk once in a while or car pool from time to time - you actually come out ahead.

As business owners, we look at big issues that affect our business and react in a rational way. I ask you to show outrage to the Congress at sending money to unstable regions and start behaving rationally for our own safety and success. It is not that complicated. Show some outrage.