(PRWEB) November 30, 2011
Quantum Financial Advisors, Inc. advised students from the Smith School of Business at the University of Maryland, College Park on writing their white paper entitled “The “New” New Deal: A Pragmatic Approach for Stabilizing the Ailing Economy”.
Students at the Smith School of Business, at the University of Maryland, College Park have published a new proposal outlining an optimal, non partisan way to reduce the U.S. deficit. The white paper proposes accepting a paradigm shift of our culture and modifying or initiating 1) Pension Reform , 2) Entitlement Reform, 3) Tax Reform, 4) Military Reform, 5) Mortgage Market Standardization, 6) Moratorium on Implementation of New Regulations, 7) Prison Reform, and 8) Initiating a National Energy Policy.
Smith School of Business students found that the economic future of America is at risk of suffocating beneath the largest federal deficit ever accumulated—one which is quickly approaching $15 trillion. While astronomical, authors conclude that the current levels of debt are not yet a death sentence, but inappropriate political action could provide an ample foundation for a stagnant economy.
Suggested in the findings are that the debate lies not in whether to cut spending, but rather in what areas and to what extent those reductions need to take place. The solution must be determined with empathy, sensitivity, and fairness and the process must begin immediately. It is important to note that raising taxes and reducing spending have contracting economic effects. Therefore, the students recommend avoiding radical changes in preference for multifarious minor adjustments to fiscal policy.
As outlined by the Smith Business School students: “These adjustments will represent a paradigm shift towards efficiency among programs and values that have become static relics of former eras. The American society, dynamic by nature, is not synonymous with the America of prior decades and federal policy should keep pace with this discrepancy. The removal of blatant inefficiencies in fiscal policy by the current administration will be rewarded with a more robust economy characterized by lower unemployment.”
Proposed in “The “New” New Deal” is a series of alterations to programs that have become outdated and represent inefficient sources and/or allocations of government funds. While understanding the extent of the legal and political actions required in implementing these suggested reforms, the students believe their proposals are pragmatic and—given the urgent nature of the topic—deserve consideration.
The authors, Smith School of Business students from the University of Maryland stated “We do not claim to be economists; merely undergraduate students with an augmented stake in the implications of the impending federal fiscal reform.”
There are eight macro recommendations found in the whitepaper. They include the following:
1) Pension Reform, 2) Entitlement Reform, 3) Tax Reform, 4) Military Reform, 5) Mortgage Market Standardization, 6) Moratorium on Implementation of New Regulations, 7) Prison Reform, 8) National Energy Policy.
According to their extensive research, the colossal debt has been an unwelcomed weight on the United States economy and now is the time to take action by developing a non-partisan deficit reduction plan. The proposal—one of many available—could reduce the national debt in the first year of implementation by approximately $450 billion and over ten years could result in a debt reduction of $3.5 Trillion. Authors of the paper believe the plan is a solid framework for a policy aimed at strengthening the foundation of the U.S. economy and stabilizing the federal debt that is asphyxiating the prospects of growth in our great nation.
“The American culture has changed over the last 50 years,” said Joseph Rinaldi of Quantum Financial Advisors. “Students, decided to take the higher road and use their pens instead of protesting. They want to take this opportunity to assist our politicians in defining the massive paradigm shift that our economy and our culture will undergo.”
The entire proposal can be read along with the Reuters article at home page at http://www.QFAInc.com. Or use the following: