EntreprenuershipEntreprenuershipAccording to the latest economic data the economic growth has weakened, unemployment is rising, credit crunch and sub primes hitting the liquidity in the market, blood bath on the Wall Street. Seeing all these, government is feared of a downturn or probably start of a recession in the economy. In December 2007 President Bush and Henry Paulson (the Treasury Secretary) unveiled a package of tax rebates to try to boost the economy. The fiscal stimulus package is estimated worth more than $150 billion in total. Individuals are expected to receive payment cheques from June- July. These cash outlays are expected to boost private consumption and accelerate overall demand levels for the economy. By seeing the size of the US economy this will be a small stimulus but it can have a multiplier effect. The immediate spends will increase the demand resulting into higher employment by the businesses. Higher employment will again stimulate higher private consumption, which in turn will
The stimulus is not needed as these companies will not be able to invest in new or large new projects which are being built on borrowed money. So this will increase the deficit, a positive for the US GDP and a negative for the general employment and consumer spending. This is a positive in our view of the economy, both for economic growth and as a whole. This will also drive real wage gains. But let’s compare our government to other countries as well, it’s like the US is an example of where an “other side” is involved, their own economic model with its own politics and the same policies were supported. The US and our countries are both at a moment of great expansion. This will also be a positive for a global economy. It will allow us to put capital which was used to buy other things like natural gas in and use for infrastructure such as roads and airports. This will lead to a big boost in investment in infrastructure, which can then be used to create new jobs in the US economy. It will also reduce the costs of the trade deficit, which is something we are worried about, but it’ll help to avoid over spending over spending.
The US economy is very strong. A lot of the positive trends are the big companies that have benefited, the people who don’t trust this government or who do not pay attention to what is happening in Washington. The financial industry may be worried, but will pay to get something done, this means they might want to invest their time into the US economy, but they will have some downside. There is also the risk that when its economy recovers we will see financial markets crash, in fact we will likely see this in the US in a few years. The US is the most stable country on earth and it will be able to recover. The government has not invested in our country, not even making a single point of policy, they always say “a few more years ago we wouldn’t have had a financial crisis or any more bad loans” because this is their job. When we have not made significant policy commitment even with the latest economic growth, we now have a situation in which we have a negative impact on the US economy and a positive effect on its public finances, that is also damaging to the US stock market, the US government already had this bad debt cycle. It is also harming our economy, at the same time it raises its national debt. The economic stimulus package was already announced by President Bush and Secretary of State John Kerry on October 27, 2007 when they said “We are committed towards the international financial framework to stabilize the financial markets. In the past year we have done more than that since then, we have been able to stabilize the markets, but the fact there is no progress, the fact that our government has chosen to ignore these things, is really concerning to the US investment community”
Our government is now responsible for $611 trillion in global economic growth. That would be the biggest economic growth in at least 3 decades. It is only the first of the coming years. More than 40% of the value of US GDP can be obtained from the stock market and most of the dollar that can have been invested in the stock market. With the economy still in recovery we will not be the one who would take that kind of financial risk, this will be the one