How to make America great again

[Dick Trump]

This might seem like a boring topic, but it is the most important thing to understand if you care about an economic recovery in the United States. FYI: I am an American.

Big business loans are interest-only, meaning no principal reduction is required. The loans are based on LIBOR (which is referred to as a "benchmark rate"). The 1-month LIBOR rate is currently .44%. A big business typically pays a low spread over the LIBOR benchmark rate. For the purposes of this example we will use a spread of 1%. So, big business' interest rate is 1.44% and its loan payments are interest-only. When a big business borrows money to make a $1 million investment it only costs them $14,400 per year.

Small business loans - which are guaranteed by the US government - are based on the Prime (benchmark) rate and are fully-amortizing, typically over 5 years. The Prime rate is currently 3.5%. Small business pays a higher spread over the benchmark rate than big business (despite the loans being guaranteed by the US government). For the purposes of this example we will use a spread of 2%. So when a small business borrows money to make an investment it pays 5.5%, fully-amortizing over 5 years. The same $1 million investment costs that small business $229,212 per year, 16 times higher than that of big business.

The debt constant (annual payment/loan amount) for a small business loan is 23%. So, in order for a small business to be able to borrow money it needs to find an opportunity that produces cash flow in excess of 23%, or else it will lose money for 5 years (and likely go bankrupt). There are very few opportunities like that in today's economy.

A big business only needs to find opportunities that produce cash flow in excess of 1.44%. Obviously, most existing investment and business opportunities qualify.

Moreover, US government-backed small business loans forbid small businesses from engaging in "financial" or "rent extracting" activities, which are the most stable and profitable businesses. There are also restrictions on small businesses engaging in international trade. Big business loans do not have any of these restrictions.

Big business is not smarter or more efficient than small business. They just have a lower cost of capital and a wider scope of available business activities. This is a result of big businesses' lobbyists influencing Congress to keep small business loans uncompetitive.

Given this dynamic, small business investment is near-impossible, and big business consolidation is inevitable. There are fewer and fewer companies cornering more and more markets. The result is the corporate oligarchy that exists in America today. There was an interesting statistic released recently. The US has fewer corporations than it had 40 years ago, despite there being three times as many citizens.

If corporations are people, do we just need more people?

The only way this is going to change is if the "people" lobby Congress to alter the terms of small business loans (which are governed by the Small Business Administration) to make them competitive with big business loans.

This inequality in the cost of capital is the cornerstone of the current corporate oligarchy. Small businesses are the backbone of America. Small businesses have created far more wealth and high-paying jobs for Americans than big business and the government combined. Today, small business is dying.

The only way to save the economic heart of the American economy is to change the lending inequality between small and big businesses. Otherwise, America will never become great again.

[talks_cheep]

Oh, yes, America will become great again. Everyone please vote for Donald Duck, let's elect him President.

[Dick Trump]

Oh, yes, America will become great again. Everyone please vote for Donald Duck, let's elect him President.

I'm not writing in support of Trump. Read the post and tell me where I'm wrong.

[Racey]

1. Economic growth
2. Fiscal adjustment-austerity
3. Explicit (de jure) default or restructuring
4. Inflation surprise
5. A steady dose of financial repression accompanied by a steady dose of inflation

But this does not work at all, why not just get it written off?

Who does the debt belong to?

Cannot pay, will not pay, who are you going to stick in Jail?

Hypothetical question, City planners build a railway at the expense of taxpayers money.
City people build this new railroad (pay tax on earnings), the same people pay to ride on this railway.

The same people pay extra for prices rises on the same railway, something is very wrong here.

We pay for it many times over, and they still have us in debt, how to fix it?
I do not know.

Edit to add: I am not American 

[Fortify]

You can start by stop saying "we're number 1" and the "usa is #1", besides defence expenditure I don't see many other positive indicators. The only reason, as someone living in Europe, that I prefer the USA to be the leading military power is because Russia or China would be far worse. When you stop believing that people in other countries might have worked out a better technology, system or implementation then you stop pushing the boundaries in science and understanding.

[Denker]

I'm not american so I don't care to be honest.
In the end it doesn't matter because wherever you look it is going down.
We are close to a point of no return where somebody will have to push the reset button.
Scary! But if you're smart this will give you the possibilty to profit from it.

[Amph]

put a limit on the salary, a maximum that regardless of who you're you can not exceed

stop printing rubbish paper endless, put a limit on printing, increase the value of each unit of your money and not their numbers

make it more difficult maybe to acquire fiat, so point 1 should make possible point 2 at least in part

[DeDordtenaar]

Oh, yes, America will become great again. Everyone please vote for Donald Duck, let's elect him President.

lol I wonder why many district and state in usa choose dick trump?
it seemed as if he was elected he can make America be great again? lol

[zodiac3011]

how to make America great again? It's easy. Don't freaking vote for Trump because, just like your name, he's a bastard to all tech companies in his own country, suggesting many many unreasonable laws such as ban Islam, internet, make it hard for many tech companies to operate and only government's budget for those.

[bryant.coleman]

How to make America great again? Try these:

1. Stop invading third world nations.
2. Stop playing the world police.
3. Spend money to eradicate poverty within the United States, rather than spending $600 billion per year to bomb civilians in Yemen and Syria.
4. Stop pandering to dictators such as Salman bin Abdulaziz Al Saud and Tamim bin Hamad Al Thani.
5. Do away with affirmative action.
6. Legalize weed.
7. Deport the illegals.

[benmartin613]

How to make America great again? Try these:

1. Stop invading third world nations.
2. Stop playing the world police.
3. Spend money to eradicate poverty within the United States, rather than spending $600 billion per year to bomb civilians in Yemen and Syria.
4. Stop pandering to dictators such as Salman bin Abdulaziz Al Saud and Tamim bin Hamad Al Thani.
5. Do away with affirmative action.
6. Legalize weed.
7. Deport the illegals.

I agree with the no.6 this will make America a great nation again and a lot of people will be happy.

[pedrog]

Halve military budget and invest it in education, science, innovation and entrepreneurship, best country in the world in 10 years or less.

[markj113]

put a limit on the salary, a maximum that regardless of who you're you can not exceed

stop printing rubbish paper endless, put a limit on printing, increase the value of each unit of your money and not their numbers

make it more difficult maybe to acquire fiat, so point 1 should make possible point 2 at leats in part

point 1> So you are happy to have the brightest and best of your country just up and leave, moving to another country that pays better?

point 2> Inflation/deflation of currency cannot be easily controlled as recent financial policies have demonstrated.  You cannot simply dicatate what the "value of each unit of your money" buys.

point 3> Fiat drives the economy, when it dries up it all falls over.  They want people spending and going ever in deeper debt to do it.

[Amph]

put a limit on the salary, a maximum that regardless of who you're you can not exceed

stop printing rubbish paper endless, put a limit on printing, increase the value of each unit of your money and not their numbers

make it more difficult maybe to acquire fiat, so point 1 should make possible point 2 at leats in part

point 1> So you are happy to have the brightest and best of your country just up and leave, moving to another country that pays better?

point 2> Inflation/deflation of currency cannot be easily controlled as recent financial policies have demonstrated.  You cannot simply dicatate what the "value of each unit of your money" buys.

point 3> Fiat drives the economy, when it dries up it all falls over.  They want people spending and going ever in deeper debt to do it.

point one should be true for each country, i was talking about a system that each nation should adopt, for the globally fiat economy, not just dollar

you can contorl the value indirectly, by posing limit on some sector like the example i've proposed

if there were less money in circulation i'm sure each unit, would have a better value

[Kprawn]

America are the only people, who put people on another planet {The Moon} but they struggle with huge amounts of debt and that is pulling them down. You have to channel

some of that military budget into something that would generate job opportunities within the USA. Solve the domestic problems and protect the borders and you will become the

giant of the past. You are fighting the wrong war on foreign soil, and this is kill your economy. 

[calkob]

It cant be done, America can never be made great again, it has abused the rest of the world since 1945 and will never be forgiven.  most people cant stand America.  sorry but in my opinion it's true.

[Racey]

It cant be done, America can never be made great again, it has abused the rest of the world since 1945 and will never be forgiven.  most people cant stand America.  sorry but in my opinion it's true.

They think people forget the atrocities, foreign policies is abysmal and full of death.
Remember this it all started with the former Jugoslavia, and the mayhem that continued from them in other countries.

[Pab]

All is about people citzens But like i see people from USA i am not so positive i am not positive for Westerness generally.West is dieing becouse of corporation dominence,people minds are corupted.
In a case of USA you will have soon to choose between Hilary and Donald Donald it will be tragedy Hilary will sell you out Sometmes i think that Donald has been supported to let Hilary win paranoia but Europe is nothing better

[Bitcoinbro]

All is about people citzens But like i see people from USA i am not so positive i am not positive for Westerness generally.West is dieing becouse of corporation dominence,people minds are corupted.
In a case of USA you will have soon to choose between Hilary and Donald Donald it will be tragedy Hilary will sell you out Sometmes i think that Donald has been supported to let Hilary win paranoia but Europe is nothing better

Well the USA is still the major country in the world when it comes to finance and politics. If they have Trump winning the election this may change very soon.
With Britain on the verge of a potential brexit. the US and their allies will become weaker and weaker.

[bitbunnny]

I think America is still great. But its people who matters, not the politicians and everything depends on them. They make their country great or not and how others see their country.