Bailout, Stimulus Package and US Economy March 25, 2009Posted by bdoza in BANGLADESH, ECONOMY, IMF.
Tags: Bailout, Stimulus package, US economy, USA, world economic crisis
US economy is feeling the pain of economic recession for the last few years. But the crisis surfaced at the end of Bush Administration when both Obama and MaCaine were at the height of their campaign. Both of them attended the special meeting of President Bush with the congress and Senate leaders where consensus for bailing out the financial institutions were made by extending support of 900b $.
This bail out proposal was later passed reduced by congress and the senate amid confusion and criticism from the ordinary citizens. To common people it is not clear then and still now why tax payers’ money would be expended for rescuing the companies who failed for their own reasons. Logic came in favour of bail out that the rescueing of the companies will save the jobs of the common people.
After Obama came to Power, as a part of economic plan, he declared the Stimulus Package for the growth of the economy by supporting home owners, Small business, education,transportation and infrastructure, medical support, art etc.
The plans faced criticism when AIG distributed a major portion of its money as bonuses to the executives. Public rage was so much that the congress formed a special Committee for hearing the explanation from the CEO of AIG.
Is the economy is improving after all these measures. Not likely. Not only US, the Europe, Japan and China are also feeling the pangs.
In a recent statement IMF told that the developing countries, though their economy will be affected but the growth rate will be less affected than the developed nations.
To ordinary citizen, the perplexing question is why US economy vis a vis the world economy is collasping? Is is a normal phenomon or a mere cycle of depression which hit in 30, in 50 and now? or Is it a failure of capitalism itself? Is the concept of capitalism on the wane like the communism? and a new world order is necessary?
The governents are busy with the remedy and the it looks that measures are temporary and superficial and will not cure the illess of the of the system itself. But very few people are actually looking into the fault of the system and analysing the permanent way out of the complexity.
An ordinary citizen
The end of Capitalism? by Mirza Azizul Islam, Former Adviser of the last Caretaker Government