subject: President Obama And Economic Crisis Of America [print this page] American people have elected Barack Obama as their President with a great hope. He has triumphed over John McCain with an overwhelming majority. Common Americans think him as charismatic. They are seeing a savior among him. Now they need to work out his charisma in bailing them out from the present economic crisis.
Economic crisis in America has hit like a hurricane. Consumer confidence is in an exceedingly hopeless condition. Retail sales have shown a negative growth in the third quarter of the year. US housing is in its worst in recent years. Dow Jones, NASDAQ and S & P are during a plunge. Banks and financial establishments are collapsing. $ 700 B bailout set up of Bush administration may not improve the situation. Everything appears to possess been demolished. Economists, fund managers, politicians and statesmen, CEOs of business homes and people at giant are stunned. Even the administration, be it local, provincial or federal does not realize a manner to come out of the terrible situation.
Current Yank economic crisis also effected the worldwide economical scenario badly. Economy everywhere the globe is currently in a downtrend. Nikkei, KOSPI, Hangseng, Sanghai, FTSE, CAC, BSE and Nifty, each and every stock market is following the downtrend of US market. Obama mania is seen globally. He has an image of a global personality. Hence, the remainder of the planet is also wanting at him.
President Obama is in the driving seat of the world economy. His decisions can not solely impact the American economy however additionally the world.
He has declared his priorities at his initial press conference. It is the economy as expected. He rightly mentioned his intention to fight the recession. Job loss in US is also in alarming state (6.five%, most since 1994) and throws a huge challenge to the President elect. He knows the challenge well. He can take it as top priority when in office. Many folks in America believe that outsourcing could be a major reason for unemployment and job loss in America. Obama campaigned for a policy against outsourcing during the election. He possible has to come out with some laws for the companies to discourage outsourcing. He may give tax edges and subsidies to encourage generating native employment.
Obama has announced future tax cuts for corporates and customary Americans. He is honestly talking of net tax cut. He has conjointly indicated special benefits to the Yank middle class.
Obama, the President elect, but, has not gone into details how he will pander to the issues of economic crisis, recession and job loss. He, after all, has given some indications. He's working with his team to return out with a strategy.
He has additionally meant to require actions in the fields of environment, energy, clean energy, finance and healthcare. Policy modification in these sectors will surely result the economic system overall.
Doable ways and suggestions:
The foremost task of the new administration is to provide jobs to common Americans. The country has to form new jobs as well as retain the previous ones. How will Obama achieve it? This can be the million dollar question.
It's very difficult to create new jobs when each factor within the economy and market is in downward trend. And For that one has to be terribly inventive and innovative. Ban on outsourcing may prove counterproductive. European Union, Japan or another developed nations could continue with out sourcing. This measure will facilitate them in cutting price in some sectors. It will improve their competitiveness against the US in the world market. It will more accelerate recession and job loss in America.
It's worthwhile if Obama and his economic advisors consider some core sectors. Agriculture, largely neglected, is one amongst them. There's large agricultural land in the US unutilized or underutilized. Agriculture contributes negligible amount in the GDP of US. Therefore, economists and firms ignore it but it has an amazing potential of employing people. Massive variety of individuals will be engaged and employed during this core sector. Agriculture is not an efficient approach of generating money but of employment. Those will be low paid jobs comparatively, however will keep wheels of economy moving.
Similarly, they can mobilize resources in mining sector. The US needs a ton of minerals and ores to feed its industries. Currently it can concentrate on its huge underutilized mineral reserves. It's a good means for the Obama administration to inspire business houses to figure in this sector paying subsidy, tax holydays or some other benefits.
