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OpEdNews Op Eds    H3'ed 7/6/12

The Crises of Costs and Social Costs

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Author 72056
Message Farid Khavari

Nothing will be gained other than sending ourselves and our economy on a faster tailspin to disaster. From an economic standpoint, labor cost must mainly be reduced through increased productivity in an economy that enjoys full-employment because the alternative would be increased social costs.


Businesses are not restricted of implementing this measure in an interest of maximizing profits by reducing cost, but this measure should not be exercised by governments without promoting a private sector job creating atmosphere.




In order to control cost from spreading like an epidemic and yet operate an economy successfully, we must realize these goals:


1)     Create jobs to jumpstart and stimulate the economy, and as a prerequisite for other measures to be implemented successfully.

2)     Create a free energy supply to eliminate all the negative effects of energy on the production process and environment.

3)     Reduce the cost of interest and insurance drastically for the same reasons that apply to energy.

4)     Create surplus revenue not only to balance the budget without cuts and layoffs, but to also have cushion for other social services.


In order to achieve the above-mentioned goals, we have to take the following steps:


a)      Stabilize the real estate market, paving the road for starting to build solar homes and converting the existing ones to run on decentralized solar and wind energy systems.

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Farid A. Khavari, Ph.D., is a noted economist and independent candidate for Florida governor in 2014. He is the author of 10 books including Environomics: the Economics of Environmentally Safe Prosperity (1993) and Toward a Zero Cost Economy (more...)

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