President Obama and economic crisis in America
President Bush, Barack Obama walking
President Obama and current trend in American economy
People of America have elected Barack Obama as their President with a great hope to bring them out of the economic crisis. He has triumphed over John McCain with an overwhelming majority. Common Americans think him as charismatic. They are seeing a savior within him. Now they want to see his charisma in bailing them out from the present economic crisis.
Economic crisis in America has hit like a hurricane. Consumer confidence is in a hopeless condition. Common Americans are in financial crisis. Retail sales have shown a negative growth in the third quarter of the year. US housing (Real Estate) is at its worst in recent years. Dow Jones, NASDAQ and S & P are in a plunge.
Banks and financial institutions are collapsing. $ 700 B bailout plan of Bush administration could not improve the situation. Everything seems to have been demolished. Economists, fund managers, politicians and statesmen, CEOs of business houses and people at large are stunned. Even the administrations, be it local, provincial or federal does not find a way to come out of this terrible situation of economic and financial crisis.
Barack Obama addressing economic crisis
President Obama declared economy his priority
Current American economic crisis has also affected the global economic situation badly. Economy all over the world is now in a downtrend. Nikkei, KOSPI, Hang Seng, Shanghai, FTSE, CAC, DAX each and every stock market is following the downtrend of US market. Share traders, mutual funds, and corporations are facing financial crisis.
Obama mania is seen globally. He has an image of a global personality. Hence, the rest of the world is also looking at him. President Obama is in the driving seat of the global economy. His decisions will not only affect the American economy but also the world.
He has declared his priorities at his first press conference. It is the economy as expected. He rightly mentioned his intention to fight the recession. Job loss in the US is also in an alarming state (6.5%, most since 1994) and throws a big challenge to the President-elect. He knows the challenge well. He will take it as the top priority when in office.
Obama, the President-elect, however, has not gone into details how he will deal with the problems of economic and financial crisis, recession and job loss. He, of course, has given some indications. He is working with his team to come out with a strategy.
Obama has announced future tax cuts for corporate and common Americans in order to help them at the time of financial crisis. He is honestly talking about net tax cut. He has also indicated special benefits to the American middle class.
President Obama: First press cofrence
Outsourcing, Unemployment and green jobs
Large numbers of people in America believe that outsourcing is a major cause of unemployment and job loss in America. Obama campaigned for a policy against outsourcing during the election. He likely has to come out with some regulations for the corporations to discourage outsourcing. He may provide tax benefits and subsidies to encourage generating local employment.
He has also intended to take actions in the fields of environment, energy, clean energy, finance and healthcare. Policy change in these sectors will surely effect the economic system overall.
Americans can hope for better days with Barack Obama in the seat. However, it will be difficult for him to turn the situation to a positive direction. Despite all his charisma it will take a long time to bring the US out of the present economic crisis. American citizens have to show patience and wait for results of his policies and actions taken.
President Obama: Speech on Economy
Possible strategies and suggestions
The foremost task of the new administration is to build confidence among common Americans and people of rest of the world on the US economy. Newly elected President has to provide jobs to common Americans. The country has to create new jobs as well as retain the old ones. How can Obama achieve it? This is the million dollar question.
It is very difficult to create new jobs when everything in the economy and market is on a downward trend. And For that, one has to be very creative and innovative. Ban on outsourcing may prove counterproductive.
European Union (EU), Japan, Canada or some other developed nations may continue without sourcing. This measure can help them in cutting cost in some sectors. It will improve their competitiveness against the US in the global market. It can further accelerate recession and job loss in America.
Hoff and Rudy rice farming in the USA
Rhodochrosite from American mines
Focus on agriculture and mining sectors
It is worthwhile if Obama and his economic advisers concentrate on some core sectors. Agriculture, largely neglected, is one of them. Agricultural land in the US is underutilized. Those can be used for both normal and organic farming. Agriculture contributes a negligible amount to the GDP of US. Therefore, economists and corporations ignore it. However, it has a tremendous potential of employing people.
A large number of people can be engaged and employed in this core sector. Agriculture is not an effective way of generating money in a developed economy where manufacturing and service sectors have lion's share of GDP. Agriculture can play a vital role in generating huge employment though low paid comparatively. However, this will keep wheels of the economy moving and we know that financial crisis and economic problems can only raise their heads when it stops moving.
similarly, they can mobilize resources in the mining sector. The US requires a lot of minerals and ores to feed its industries. Now it can concentrate on its huge underutilized mineral reserves. It is a good way for the Obama administration to motivate business houses to work in this sector by paying the subsidy, tax holidays or some other benefits. It will help corporations facing financial problem nowadays.
Aheicultural jobs remain in demand despite slow US economy
Engine house at Tankardstown Copper Mine
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