The United States has been in a recession since December, 2007, as defined by the National Bureau of Economic Research, a private, nonprofit research organization. But the American people, and the Obama administration along with the democrat majority congress, seem to be at odds on how to fix the US economy. smalltechy
A robust US economy means companies expand which results in job creation. Currently, the American people are not spending because many are not working, and those who are working are spending less, most likely due to the possibility of losing their job. Current unemployment rate stands at 10.2% as of October, 2009. A decrease in spending by the American people results in a decrease in company profits, company non expansion, and more layoffs.
Reporting on a survey by Watson Wyatt, a consulting firm, the HRSpecialist.com reported in November of 2008 that one-fourth of U.S. employers plan to have staff reductions during the following calendar year. We are now seeing this come to fruition for 2009.
So how can the US economy improve? Improvement being defined as two consecutive quarters where we do not have negative growth in the GDP (gross domestic product). The following is what we call the Steps to Economic Improvement. These are steps for consideration which hopefully result in a healthy bipartisan discussion between our elected congressman and their constituency. These steps may result in non-recessionary growth of the US economy. smalltechy
You may or may not agree with these steps, but at a bare minimum, these are points to consider, and ideally result in a healthy discussion with our elected congressmen, which at last check, is one of the unchanged notions of a free democratic society.
Steps to Economic Improvement:
The first step is to realize that it is business and not government that creates jobs and wealth within the American society. This is where we believe is the heart of the problem. It is evident that the Obama administration believes it is government that will lead Americans to economic prosperity. This is why the federal government has put forth a $780 billion stimulus package. So where is this money really going. Let’s take a look at the breakdown. (source Republican Senate office, CNN.com AC360)
$780 Billion Stimulus Package:
More than $43 billion in transportation infrastructure investments
$27 billion for highway, road and bridge investments
$8.4 billion for public transit investment
$2 billion for high speed rail
$1.3 billion for faa airport improvement facilities and equipment
$850 million for amtrak
$250 million for grants to states for investment in high speed and inner city passenger rail
$100 million to maritime administration for assistance to small shipyards
$76.8 billion in education investments
$39 billion for state fiscal relief targeted directly for education
$13.9 billion for pell grants
$13.5 billion for special education funding
$10.4 billion for title I
$6.4 billion for water and sewer infrastructure
$3 billion for job training
$3.25 billion for workforce investment programs
$160 million for job corps .
$87 billion in temporary and targeted medicaid relief to states
$5 billion for supplemental grants to public housing authorities for capital needs
$4.7 billion for state and local energy efficiency block grants
$4.4 billion for smart
$2.9 billion for weatherization programs
$2 billion for advanced battery manufacturing
$7 billion for loan guarantees for standard renewables
$800 million for construction of ports of entry
$500 million for firefighters assistance grants
$1.2 billion for national science foundation