SMU Economics Prof Ravi Batra Says You Need a Bailout, Not Your Bank
· Raise the hourly minimum wage by $1 every year until it reaches $10.
· Raise the salaries of government employees by 10%, which China did in November.
· Bailout the harried homeowner and not Wall Street and big banks, because if the homeowner can make mortgage payments, banks will be in good shape.
· The government should buy the shares of GM and Ford for $5 billion and give them to their workers, whose representatives will then run the companies. It will then be up to them to save their jobs. The government may also spend another $10 billion to lighten the burden of pension and healthcare costs in the auto industry.
· Trim the trade deficit sharply by fixing the dollar exchange rate with the currencies of China, Japan and the Eurozone. Without this measure all others will have limited success.