A lot of changes are needed to prevent our economy from heading into a double-dip recession.

There is no magic solution to guarantee a short-term reversal. The administration wants people to start spending, but if you are out of work, or having trouble paying your mortgage, you don’t buy things what you can’t afford. If our governments, at all levels, also would stop paying for things that are unnecessary, the tax savings might create a real stimulus program.

Most of us are tightening our budgets, but the federal government is spending more than ever, and not just on stimulus programs. Government civil service workers are still being added, who each average more than $81,000 a year in salary, and $123,000 in total compensation, according to a recent analysis by USA Today. While government unions argue that public employees are underpaid, the evidence is that they make twice as much as workers in the private sector, on average.

Businesses are fearful about how new regulations and taxes will affect them. Until their concerns are answered, most will not invest in their businesses, so no new jobs will result. Business people are also concerned about the added costs to businesses on healthcare insurance, retirement packages, future energy and labor issues, along with the huge public sector deficits looming in our future. Economic theory tells us that small businesses can be assumed to act rationally, and to make their business investment decisions based on expected outcomes. That means that owners of small businesses make their decisions by determining whether investing more funds in their businesses, to increase production, sales and profits, is worth doing. They invest if they believe the marginal benefits will exceed the marginal costs for their new plans.

Right now, they don’t see the benefits, only the new government-imposed costs. To jump start the economy, some better incentives are needed. Business people need to see government as a supporter, not an enemy. Private businesses must be competitive to make a profit to stay in business. Businesses are at risk of failing, when they start up or invest in new programs or enterprises, which create jobs.

Now is not the time to raise taxes on businesses or taxpayer incomes. Home foreclosures and a roller coaster stock market continue to haunt us. Job growth evades us. The economy is too weak and unemployment is too high. Congress must hold the line on increasing taxes and do it by law before the end of 2010. The present tax cuts and regulations should be held in place for at least two more years, until the economy picks up. Small businesses are built in a capitalistic environment in America that has rewarded hard work and innovative efforts. Not everyone will be successful in getting higher incomes. Successful entrepreneurs earn those rewards by working hard, and risking their money and their time in projects they believe in. They also learn the skills they need to succeed in their fields.

Raising taxes in a down economy doesn’t build the jobs that are needed to stimulate the economy. We need to act now to reduce the deficit and run away spending by our government, so we will not go through similar worst-case economic scenarios that have recently happened to Spain, Portugal, Ireland, Greece, and other countries.

A long term strategy for the next decade must be established in order to get our children and grandchildren out of the huge deficit mess facing all of us in the future.

What is needed is no more added stimulus spending for any new programs, at the expense of taxpayers. The government must stop spending and cut entitlements and new stimulus programs, including aid to states. Even the healthcare plan should be revised to get in step with what the majority of American people want and do not want.

Our government should take the same course of action that businesses take when total expenses exceed revenue incomes. The answer is to stop spending and cut back on all operations and services at federal and state levels.

A double dip recession can be avoided. Congress must act fast before year’s end to stop all government spending and make definitive plans that are less onerous to both business and taxpayers.

Otherwise, job growth will suffer, the economy will falter and a double dip recession might occur.