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Furthermore, without participation of emerging-market countries, cap and trade will have a disastrous impact on the U.S. economy and job creation. China, India and most other emerging nations have said they do not plan to participate in capping carbon emissions. Therefore, expect U.S. companies to transfer the manufacture of energy-intensive products overseas to low-cost-energy countries, and expect U.S. jobs to follow.

Fourth, the federal government has disrupted the “creative destruction” process of the recession by keeping failed businesses afloat. GM, Chrysler, AIG, Citibank, Bank of America and other institutions are now effectively owned and controlled by the U.S. government. The government has created a “moral hazard” with its “too big to fail” policy. Aside from the direct costs to the taxpayer, the government is undermining the efficiency of American capitalism by keeping failing companies afloat.

Based on this, the recommend course of action to get the economy back on track is straightforward.

First, repeal the part of the stimulus package that has not yet been spent. If the government must enact a fiscal stimulus program, enact a permanent tax cut directed at both consumers and businesses. Second, reduce the deficit by cutting government spending. Start with reductions in health care and pension benefits to Congress and the civil service. Everybody outside of government in America makes a substantial contribution to their health care and pensions costs. Almost every business in America has gone through the pain of becoming lean in order to survive this economy. Washington should become lean with the rest of America. Third, forget about health care reform and cap and trade until the economy recovers. America cannot afford them at this time. Fourth, get out of the corporate-turnaround business. Sell government interests in bailed-out companies and pledge not to contribute another nickel of taxpayer money to corporate bailouts.

If the administration and Congress take these actions, consumers and businesses will quickly regain confidence in America’s economic future. The economy will then begin its natural recovery process.

• “The Armstrong Williams Show” is broadcast weeknights on XM Satellite’s Power 169 channel from 9 to 10 p.m.