Washington needs to follow the footsteps of what many Asian nations have done, said Steve Forbes, CEO of Forbes on CNBC Tuesday, and that is to reduce the tax rate or introduce a flat tax.
"The American people know that adjustments have to be made", Forbes said.
Stabilizing the dollar is also "imperative" to the recovery, he continued.
"(A) weak dollar means (a) weak recovery. You cannot have long term growth when your currency's continuing under assault," he said.
The Federal Reserve is "absolutely oblivious" and "absolutely ignorant" to that, he remarked.
"If weak money were the way to wealth then Zimbabwe would own the world today. It does not work," he quipped.
With the Fed expected to implement another round of quantitative easing in the coming months, Forbes likened the impending move to doctors who would continuously bleed sick patients.
"The patient obviously got weaker and they'd bleed the patient more. Ben Bernanke is one of those bleeding doctors," Forbes said.
Ahead of the U.S. mid-term elections, Forbes predicted the Republicans would make enormous gains.
"The reason is people are very upset by the binge spending, very upset by this massive new regulations and health care...upset about rising taxes," he said.
'Huge Opportunities' in Asia
Forbes said he saw there were a lot of "huge opportunities" in Asia, primarily in India, Indonesia, China, Vietnam among others, as these countries have growing middle classes with rising disposable incomes.
"They're starting from a relatively low base, and so they have a lot of room to grow," he said.