The Future of American Economy Essay (Article)

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American people have been facing the problem of increasing bills and decreased savings recently. The newly elected president, Obama believes, that as a nation the US has to act quickly to regain the competitive advantage the country had over the whole world. The current American economy is going through the worst downfall in the history of the country. More people have lost their jobs than in the times after World War II Those people who need full-time jobs to support their families are forcefully shifting to part-time jobs. Businesses are failing to pay salaries and families are not able to pay mortgages. The average American families are curious and anxious to know what the future of the economy of this nation holds for them. President Obama thinks that this crisis is a result of irresponsibility on the part of previous governments, dangerous decisions by Wall Street executives, loans given to bad debtors by banks, taxpayers’ money pent in the wrong way, are, etc.

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In this regard, he has come up with an economic stimulus package. This package aims at creating 3.6 million jobs in the next two years, and also to increase consumer spending. This $787.2 billion recovery and reinvestment plan is intended to shorten the recession. He believes that being confident, as he is about his decisions, is the solution to the problem.

One of the changes being made by Obama is for automobile buyers and sellers. For sellers, he has proposed to increase the current $25 billion federal loan to assist automakers up to $50 billion. The industrialists however argue that they need unrestricted cash to meet their financial requirements. For further assistance to them, the President is going to try and make changes in the environmental and energy policy, which may, in turn, benefit the automobile makers. He has decided to invest $ 6.3 billion in related industries to reduce the emission of carbon. $2 billion are also to be invested in the manufacturing of battery systems and components for vehicles made in the USA. An Auto assistance Ownership amendment that provides tax breaks for new vehicle buyers has been passed. This will give them a federal-income-tax deduction on local sales and excise taxes, but not on the interest on loans. It applies to any new vehicle purchased from February 17th, 2009 to December 2009.

Certain changes in the travel industry will also have to be made. The departments of transportation will have to find the most environmentally friendly alternative when designing their transportation solutions. Moreover, the government aims to invest $8.4 billion in public transportation to facilitate Americans, $1.5 billion to state and local governments, and $9.3 billion to railroad transportation. It is expected that these investments will in the long run facilitate the average American and reduce his transportation costs. The housing stimulus package will also provide great help to first-time homebuyers by providing them with a $7500 tax credit. For this, they have to buy a home by June 30, 2009. This will also be an interest-free loan.

Economists and people who deal with money all day believe that that this package is short on incentives for consumers to spend again and is long on unachievable social goals. It involves spending money on certain programs that may have very little impact on the economy as a whole. The jobs that the package aims to create are government jobs and what will happen when they are finished? Layoffs again? According to the economists, the money recession of a country will be ended when money is handed to the people rather than the government distributing $1 trillion out of the national economy. Obama says that confidence, not fear can get us through this tough time. The only thing we can do at the moment is to wait and see what the future holds as nothing is clear so far.

Works Cited

Olsen,Scott. “Barack Obama reveals stimulus package that could exceed $1 trillion” The Times 2008.

Andy. “An American Recovery and Reinvestment Plan” www. Savingtoinvest.com 2009.

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Calmes,Jackie. “Obama asks Bush to provide help for automakers” International Herald Tribune 2008.

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IvyPanda. (2021) 'The Future of American Economy'. 6 December.

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IvyPanda. 2021. "The Future of American Economy." December 6, 2021. https://ivypanda.com/essays/the-future-of-american-economy/.

1. IvyPanda. "The Future of American Economy." December 6, 2021. https://ivypanda.com/essays/the-future-of-american-economy/.


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IvyPanda. "The Future of American Economy." December 6, 2021. https://ivypanda.com/essays/the-future-of-american-economy/.

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