Just one day after the President's speech to Congress, and to the country regarding his much touted jobs package, the stock exchange found itself losing hundreds of points. Even though the stock market's negative response has more to do with the general world economy, one can not help but to assume the President's address added to the poor trading session. And while most financial experts are split at the effects this jobs package could have on our economy, they all basically acknowledge it is insufficient and far too late.
As opposed to previous economic recessions, our financial system is no longer fully in our influence. As the nations of the world opened up their economies, they so too became more susceptible to the political failures which have formed across the world. This is why the economic crisis in Greece, together with other select European countries, has influenced our economy and could drag down the whole world.
Outside of the clear political mishaps transpiring outside of our country, consumers supposedly account for 70% of our nation's economic activity. That is a rather large portion of the total economic output. Unfortunately, what consumers are now purchasing is usually manufactured to another country. This has significantly minimized the consumers influence on our own economy because much of the money spent on such goods just goes to overseas businesses and benefits the USA very little.
Our national jobless rate, which sits at 9.1%, is placing more stress on the national budget. The influence very high joblessness has on our nation is powerful in reducing tax revenue and is placing pressure on already under funded government programs. Regretfully, quite a few economists expect high unemployment levels to persist for years. And with high unemployment, many households are struggling with a lack of funds to pay for basic bills and the loss of their employer paid medical insurance coverage.
After seeing President Obama's address about his much anticipated jobs strategy, I was left feeling disappointed. Most of what President Obama has proposed will never return America's economy to the condition it was formerly in. What the President's jobs package appears to be is a concealed attempt to ease the economic burden just long enough for him to become reelected. And the Republican's reaction to the speech was more partisan then anything else. At the pace our economy is moving, a large number of voters probably feel as if there is no room for political bargaining. And even if compromises might be worked out, just how productive would this new stimulus effort be at helping men and women simply find a job?
The path out of this economic crisis is fairly clear in my opinion. We need to backtrack our political missteps. We have to reverse the damage which regulations have placed on businesses. We need to end President Obama's and President Bush's tax cuts. Finally, we have to restore economic independence by taking swift action on our trade deficit by reforming trade policies as necessary. Instead of racking up billions of dollars every month and year in trade deficits, we need trade agreements that equalize trade so that all parties reap the benefits of trading an equal dollar amount of merchandise. If we don't rapidly undo the harm we have done to ourselves, our sustained financial path downwards is a certainty.
Author Resource:-
Government waste is common in Washington D.C., and this writer analyzes solutions that will truly help people get back to work and supporting their families without the need for government waste.
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