United States – Jobs, Economy and Deficit Reduction

September 18, 2011

By Padmini Arhant

United States unemployment at 9.2% and disproportionately higher among African Americans about 16.2% is national concern deserving attention from lawmakers, corporate America and institutions in the advisory role on job creation.

Economic stimulus through banking industry and automobile sector bailouts including various tax credits to middle class as well as tax breaks to companies,

Not barring Bush tax cuts extension to the wealthiest in the growth revival expectation is yet to produce anticipated jobs across the nation.

Beginning with credit crunch affecting small business and medium enterprise along with housing market decline despite historic lower interest rate,

In addition to stagnant job market restrains consumer spending relevant to energize industrial output.

Incentivizing small and medium entrepreneurships with required capital via business loans at special rates for established business and those struggling to retain or hire workers,

While minimizing health care costs and tax burden might provide relief to small businesses in turn easing the unemployment situation.

Corporations holding cash reserves could boost consumer confidence through jobs with domestic investments in manufacturing and service industry besides promoting research and development.

Tax breaks to corporations when utilized in job retention would promote economy and revenue prospects to address deficit reduction.

Simultaneously tracking tax evasions by corporations and wealthiest in the society could potentially deduce contributors to existing economic woes and growing national debt.

Regulations in the legislated financial reform is redundant with the lack of initiative and political will to appoint dedicated consumer advocate including crucial checks and balances on Wall Street irregularities having become standard business practice in the era of hedge fund type mismanagement.

Housing market is still under enormous pressure due to inadequate programs to help homeowners salvage foreclosures and short sales – promoting unscrupulous methods among trade representatives and lenders focused on immediate gains precipitating decline in home value.

As a result home investments is less attractive driving long term investors away from real estate to other investment opportunity with precious metals and commodities comparatively yielding better returns even against the increasingly volatile bond securities.

Stabilizing housing market with pervasive assistance largely from financial institutions having benefitted in the taxpayer bailouts could now reciprocate by offering relevant discounts or considerations to all i.e. first time buyers and significant population facing hardships to keep their homes in the deepening recession.

Such comprehensive measures would then generate rebound in home prices and construction industry not excluding occupations associated with commercial and residential real estate resetting employment for labor segment.

The current threshold in home rescue plan viz. ‘Make Home Affordable’  (MHA) is restrictive barely accommodating the needs of vast majority entirely at lenders’ mercy and discretion in interest rates modification or present market value adjustment for viable affordability given the available parameters favor lenders more than borrowers in the prevalent economy.

Monopoly in the national or global market share redefines capitalism endangering consumer rights and market economy dynamics.

J P Morgan Chase heading a group of five banks in control of 95% world derivatives market could inevitably threaten competition with corporate policies overriding consumer protective regulations and other necessary market interventions.

Similarly in the telecommunication sector – AT&T recent acquisitions are T-Mobile, Verizon, Cingular, Xanboo…are just a few with more on the horizon.

Nations confronted with rising debt and austerity to survive credit rating and budget crisis pose lingering uncertainty in the global financial market and general economy.

The constant speculation on possible default foment trepidation in the otherwise willful overseas economic partners investment proposals to alleviate challenges in the higher debt economies struggling between rigorous spending cuts and political opposition to tax hikes against wealthiest reaping benefits at the poor and middle income groups cost.

Tax code reform and streamlining tax structure closing loopholes is centralized discussion missing in action.

Another vital revenue source is holding domestic black money hoarders in foreign bank accounts especially Swiss bank deposits and several tax havens under disguised operations accountable with no bars in the application of law against culprits.

National bankruptcy is attributed to erroneous economic policies and indefinite military engagements offshore,

Notwithstanding unlawful activities in tax avoidance striking the hard working demography – the lower and middle class burdened with bulk tax payments as active consumers and taxpayers without substantial privileges unlike the wealthiest corporations and individuals deriving maximum income on minimum tax liability.

The pending job legislation seeking $447 billion stimulus from the Super Committee $1.5 trillion savings with compromises on social security and Medicare is contentious for it would directly impact the core consumer percentage forced to withdraw or constrain retail expenditure on common household goods and services for expensive private health care within limited disposable income.

The ramifications would be severe on retail and small businesses in the slowing consumerism with main street struggling to make ends meets in the dire economy.

With respect to infrastructure jobs in the package – the stimulus bill $787 billion passed in February 2009 consisted allocation for infrastructure repair and restoration.

Perhaps review in this context would shed light on productivity and precise job delivery in the past two years from this particular source prompting access to any residual funds for remaining job oriented national projects.

Funds interjection into the economy requires monitoring and periodic evaluation to determine performance followed by remedial course n the absence of desirable outcome.

If the bill comprises new techniques different from the earlier stimulants with guaranteed job surge, it might be worth pursuing the targeted goals.

However, reallocating nearly one half trillion funds calls for due diligence forsaking repeat experiments and,

Instead shifting resource deployment across the economic spectrum facilitating progress in farming, manufacturing, small business and medium enterprise, education, preserving essential services and programs via technology based outlets but cutting back on excess administration and bureaucracy in public and private sectors,

Green energy & technology supply without government sponsorships from the executive or legislative branch to safeguard taxpayers dollars.

In terms of corporate role with surplus cash in improving job conditions,

The reservations appear to emanate from looming deficit and Washington handling of the economy contrary to political perception premised on additional tax bonuses to entice corporate America on the 98% population backs enduring economic pain.

Free market economy is endowed with financial and human capital.  The player in the wide-open competitive field wasting time and resources on underlying risks is unfortunate –

The myopic view failing to recognize macroeconomic benefits tied to job investments.

In a nutshell, corporations having been responsible for economic meltdown in the heavily deregulated environment with no transparency to deter reckless activities involving public funds and holdings arguably bear prime responsibility in the status quo reversal.

Again, the political leaderships’ complacency and complicity exacerbated downslide with widespread implications on jobs, housing market, skyrocketing deficit, currency disputes, trade imbalances – revealed in Q2 US GDP 2011 at 1.3%, credit downgrading and overall grim economic report.

US Small Business Optimism index falls to 13 month low.

US August import prices excluding Fuel rise 5.3% from last year.

US Census:  Median Household income in 2010 fell 2.3% to $49,445.

US Census: US Poverty rate rose to 15.1% from 2009 – the highest now since 1983.

US Posts $134.2 billion budget deficit for August 2011.

US YTD (Year-To-Date) budget gap compares with $1.26T in 2010.

United States is not deficient in ideas, innovation and ingenuity.

The diverse skills in the American work force combined with exemplary business acumen and corporate successes are testimonies to U.S. economy being instrumental in the global economic feat.

United States economic stability and sustenance is paramount for worldwide development.

U.S. currency as international monetary unit in conjunction with developed and developing economies dependability on U.S imports reinforces United States position – the global Super turbocharger.

Corporate and political leaderships in the respective domain pledging commitment to economy and the country could expedite economic recovery uplifting citizens’ living standards with secure jobs, affordable housing and health care, Green energy and last but not the least  –

Safe and clean habitat – the legacy for future generation.

United States has triumphed the trials and tribulations throughout history and unified efforts around this time is pertinent to resolve daunting issues on the economic, political, social and environmental fronts.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

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Written by Padmini Arhant · Filed Under Featured, United States 

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