On January 20th, President Obama became the first African-American president in United States history. His campaign revolved around the theme of change for America and dealing with all the issues that face America. President Obama should immediately take action to solve America’s largest problem: the economy. During the 2008 election, fifty-six percent of people said the economy was the most important issue to them and 10.1 million people are currently unemployed. The economy is struggling, but if Obama makes the right decisions, the United States Federal Government may be able to reverse the damage.
In 2008, the economy began faltering. Throughout autumn, the Dow Jones Industrial Average stock market index dropped by hundreds of points, and has stayed under 9,000 points since. As a result of losing money from stocks, many have become broke. In September, Merrill Lynch, a stockbroker, sold itself to Bank of America for a mere $50 billion. The Lehman Brothers, also a security firm, filed for bankruptcy and then liquidated. Furthermore, the American International Group, an insurance company facing massive credit losses, requested a $40 billion lifeline from the federal government. The struggles of once-prideful corporations to avoid personal financial crises exemplify the need for the new government to stable the economy. The growth of a single industry may be enough to save the American economy from the brink of disaster. Thomas Friedman predicts the alternative energy industry will be the “growth industry of the 21st century,” and the study “Economic Drivers for the 21st Century,” estimates the industry could create 40 million American jobs and 4.5 billion dollars by 2030. The Roosevelt administration was able to lift the country out of a depression in the 1930’s by creating jobs; thus, a policy that employs millions of people will bolster the economy in a similar fashion: giving the people money to invest and buy.
The Essay on Atrocity And The American People
An atrocity is defined as "An act of cruelty and violence inflicted by an enemy-armed force upon civilians or prisoners." Some believe this war in Kosovo is about politics. However, upon examination of the specifics of this conflict it is apparent that this is about religion. People must then decide whom, if anyone is committing these atrocities. Should the United States be involved in the ...
The Alternative Energy Industry can save the economy, if we can make the transition from fossil fuels to renewable energy immediately. According to the “Ministry of Foreign Affairs of Denmark,” Demark transformed from entirely energy dependent to entirely energy independent in just thirty years. The Danish were spectacularly successful in adopting Alternative Energy, and their policies are being successfully implemented across Europe. The only logical option is to follow the Danish policy, since has been empirically proven to work. Currently, American energy is created at large centralized power plants and distributed over a gigantic area; one power plant may supply half a state with energy. The Danes created a different power distribution system, utilizing smaller, decentralized power sources. For example, if a school wished to power their building with solar panels, the Danish incentive made this option economically feasible. The Danish incentive has three components: The owner of the new energy source must connect to the nearest point on the grid, the grid operator must pay for any updates and repairs to the grid, and the utilities must purchase any excess energy produced at a fair price.
Currently, Obama’s economic stimulus plan will not help the economy. Obama’s plan should just be called the New Deal 2. It is very similar to Franklin D. Roosevelt’s New Deal. The New Deal was used during the Great Depression to help stimulate the economy. It failed epically. The New Deal was said to have lengthened and worsened the economy. President Obama’s stimulus plan will increase the government while worsening the economy. This will increase the United States’ already large debt and not help the economy at all. President Obama needs to rethink his priorities for the economic plan. Expanding the government will cause an increase in taxes. This increase will cause the consumers to spend less and less. The point of the plan is to stimulate the economy. With the consumers spending less President Obama will tie the economy’s hands behind its back. The correct course of action is to set the consumer first. When the consumer feels confident, they will spend more money and circulate the wealth themselves. The more hands the money touches, the better the economy will be. As people spend on businesses, the businesses will expand and grow. Then the banks will lend out all the money they are keeping in reserve. Tax cuts and tax rebates would help make the consumer feel more confident. Instead of collecting taxes and spreading the money, the government should deduct the taxes and let people keep their money. Moreover, the banks need to be forced to lend money in return for a bailout. Letting the banks spread the money themselves relieves consumers, businesses, and the government.
The Term Paper on Economy 320 Money and Banking
The Federal Open market Committee has twelve voting members. Seven of these members are the board of governors who are appointed by the president and serve for terms that are fourteen years long. The appointment has to be approved by the senate. The reason as to why the terms are long is so that the committee can be freed from presidential and political influence. The years also end on 31st of ...
Hence, President Obama’s biggest challenge is the economy. Obama will need to change his course of action to stimulate the consumer. The United States takes up about one third of the world’s economics. This financial crisis is a global problem that needs to be corrected.
While statistics show the economic benefits will not be fully recognized until 2030, the economy will receive an immediate jolt. Updating the grid infrastructure, building alternative energy, and improving the existing technology will employ people immediately. Whoever invests in the technology will start generating money immediately: money which will bolster our economy. If we mimic the Danish energy policy, we will be on the fast-track to economic recovery. Also the government should work to stimulate the economy by being involved and setting the consumer first which will help contribute to a better economy.