Tuesday, March 24, 2009

Build a Foundation

The Obama Administration is stuck on the rebuilding of the banks as the way to solve the current economic situation. That might be a necessary element, but it is far from the only response that is needed. After eight years of neglect by the Bush Administration there is a dire need to address the downward mobility of the American Family. Not only has the income disparity grown throughout the Bush years to the point of creating two classes and almost making the middle class non-persistent, the disparity among racial segments of the American Society suffered greatly under the Republican Regime of George W. Bush to the pint the the wealth quotation of Black Americans is on 10% of the wealth quotation of White Americans. But this is not just a racial issue, the disparity between rich and poor has widened to an alarming rate throughout the Bush Administration and nothing that the Obama Administration has proposed will address this disparity.

Even if the Banking System is the priority at this moment in the economic recovery plan, it should not be pursued exclusively. Without purchasing power from the consumers a consumer based economy can not thrive. Mr. Obama talks about the extra money that the working class will see in their checks beginning on April 1, 2009 because of the payroll tax that he implemented, however the weekly sum is minuscule and will not add much to the weekly purchasing power of the consumer on a weekly basis. The Obama Team has acquiesced to the Republicans on a number of fronts and adopted Republican ideas, the Republican Idea that they should adopt that they have not is sending out Stimulus Checks to individuals.

The payroll tax cuts are a great idea for the long haul, however, there is an immediate need to foster spending at local stores and businesses that are closing in the thousands on a weekly basis. These small businesses are the life blood of neighborhood economic activity and employ large amounts of workers who are being ignored in favor of Corporations that employ thousands at central locations. It is just as important if not more important to stem the tide of business closures that employ a handful of people. It is these businesses that employ the most people in rural and middle America, and as these businesses close throughout small towns across America, it will cause these small towns to become like the ghosts towns after the Gold Rush, never to be revitalized again.

The Federal Government continues to throw Trillions of Dollars at the economic crisis targeted only to a few major corporations who are not stimulating the towns and rural communities across the Nation by spending the money in the small businesses that are the backbone of the American Economy. The Bush Rebate was the right idea, but it was too little too late. in Order to stimulate and grow the Economy on an equal basis throughout the Country, the money should be distributed to the people who are most likely to spend it as opposed to Corporations who have been and will continue to direct the money to paper investments and reserves. A program that will either put a large amount of spendable income into the hands of everyone either all at once or broken down to every sixty days for a year would do more to rebuild the foundation of the economy than any one Bank Bailout or Insurance Company Ransom Payment.

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