With the markets continuing to fall invesotrs have been worried with what the outlook for the economy looks like and if we are really helping out the Economy with the Stimulus. After reviewing the situation today i feel so far the Obama Administration has let us down in what he promised would be a resurgence in the economy. The Stimulus Package has not had the impact that many once thought it would. I equate this to the misuse of funds. Currently the Government is giving too much to taxpayers for temporary brakes than actually fixing the problem. The $1,000 tax breaks, unemployment benefits, etc are great but long term it won't help us out. Tax Payers need to bear through tough times and we should be giving that money to Banks and to emerging industries such as Healthcare, Pharmaceuticals, Energy, and Technology. By giving money to Tax Payers we are pretty much just trying to keep them happy so when things to get wore they can't complain that they received no aid. By helping out the banks we can allow them to return to normal day by day operations which will in turn allow for an increase in economic growth by the way of new small business and the expansion of current ones. Currently with the limited available capital it is hard for many small companies to get their foot down along with big companies who have been unable to expand due to limited funds. Investing in up and coming industries is another key aspect as those are the factors which will be the driving forces of the economy in the future. They will offer job stability and a resurgence in America's world dominance. Yes tax payers help but in the long run a economic comeback will have a much larger effect. If Economic Levels return, jobs will be back, Retirement Account values will increase, consumer spending will comeback which is what the Stimulus should have been focusing on. I partly blame the liberal thinking in the sense that they are always looking to please the majority and help out the poor. In this case though they will not be offering the lower class any aid. Giving them an $1,000 stimulus check will give them short-term help but what happens if the economy never rebounds and that person will never get his Construction job back from say Caterpillar. As we continue with the distribution of the money for the Stimulus i hope to see Obama focus on fixing the banks, which he has done, along with developing new industries for America's labor. It looks like we have lost the Auto Makers so we need something to propel us into the next century. For those receiving the checks temporarily this will help but in the end you will be paying the money back through taxes, program cuts, etc. All investors also have to realize that debt is one of the worst things a company can have so in this case the government is taking on more and more debt just to please the American people. In times of crisis it is often the decisions that don't please the majority which are most effective. Obama is a very popular president so far and i wonder if that plays into his ideology of giving back to the people rather than fix the problem. I hope to see him step up as a leader and make the tough decisions in which a President has to make to better us all.
If you would like to further discuss this topic check out the link below which will direct you to a discussion board. Click Here
0 Comments:
Post a Comment