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Video: Where American Stands: Labor Day & The Economy
Chris Wragge discusses the impact of the economy on Labor Day 2010 with Rod Kurtz, executive editor of AOL Small Business.

Read more on CBS News

Americans are becoming more skeptical and concerned about President Obama’s actions and the growing record of broken promises.  When it comes to the “change we need”, the President seems to be shifting gears, from “Yes We Can”, to “Let’s try and see”. The growing resume of Presidents Obama’s deceitful tendencies began with his campaign promise to accept public money.  The pledge was to “ensure” that he and his Republican counterpart would operate within those financial limits.  That promise was broken without any apology. The next change in policy happened only 4 days after his inauguration.  When the President broke his promise of keeping lobbyists out of his administration, by nominating lobbyist William Lynn for Deputy Secretary Of Defense.  This being immediately followed by another broken promise of, posting Congressional bills on the White House website for five days before signing. Obama then broke a promise aimed at the Americans who elected the President into office.  During his campaign, Obama pledged many times that Americans making less than $250,000 would not see “any” tax increases, which he reiterated, “not on any of your taxes”.  However, he recently signed into law the largest tax increase ever on cigarettes, with full knowledge that smoking rates are higher among low income Americans. These broken promises are raising eyebrows within Obama’s administration and with the American public.  And with the situations of middle-east tension and financial aid to Israel, the President is receiving additional and extensive media coverage. According to the Foreign Assistance Act, the U.S. is prohibited from providing foreign aid to any country trafficking nuclear enrichment technology or equipment not in compliance with international safeguards.  And, due to the President’s countless promotions for more transparency from our government, Obama now finds himself in a tough spot.  If Obama gives too much aid to Israel, he may actually break the 1976 law. Most of President Obama’s supporters are still optimistic that the President will bring the change which most Americans hope for.  Ironically, more and more Americans are waning in their optimism, believing they have been deceived by more of the same political maneuvering and secrecy.  Some has gone as far as publicly saying that the President simply has a strong “lust for raw power”. As with all past presidents, the spotlight is fixed on the new President Obama.  And with the current recession on the minds of Americans, Obama is receiving harsher scrutiny and criticism daily.  There is a growing consensus that the President’s pledge for more transparency in our government, may become the most significant broken promise of his presidency.  Many of his supporters are heart broken and in doubt, believing that government secrecy is moving to it’s next phase.  America waits anxiously to see the outcome.

The American economy can go either way according to most newspapers and television commentaries. The experts say that we have a 50% chance of going into a recession while some say we have almost no chance. Trying to decipher their confusing messages can be difficult. That leaves most American businesses unsure of what the future holds for them. Are they still going to be able to compete or are they going to suffer a slow and painful decline downwards. The best way to answer that question and determine how to improve the business environment is to look at the American businesses strengths and weaknesses.
Success and failure is all about strengths and weaknesses. When we rationally see the strengths and compare them against the strengths or weaknesses of other countries we can better determine our chances of success. It is almost the same as when you bet on two boxers one of which has endurance and the other one quickness. The one you feel will win depends in part on how you see the situation. If you feel the quickness will take out the opponent in the first few rounds then he is the better bet but if you feel that the two boxers are going the distance then endurance counts.
Looking at the American business world and comparing it to the challengers you can also see better who is going to win in the end. We know that the world is a high-tech place where efficiency and cost matter. The one who produces the cheapest products is likely to win as long as their products have reasonable quality and don’t break down often. With Chinese cheap products and America’s high quality both countries will need to come closer to the middle.
Strengths of American Businesses:
High Technology: Powerful and growing businesses require email, Internet, cell phones, computers, robots and more. The technological advances of the U.S. are difficult to surpass and few countries even come close. American businesses can grow simply because they can manage different international locations as though they were a block away. Few foreign countries can do this. In addition, America also has the ability to develop and implement modern technology like robotic arms and complex systems that increase productivity.
Power Supply: China is attempting to get its hands on as much natural resources and energy as possible. The U.S. is also doing this but is much further in the game. While the U.S. is moving towards alternative energy supply and thinking beyond fossil fuels China is still trying to accumulate basic energy. American businesses have no problem with black outs, rolling power outages or a lack of energy. This is a benefit because their environment becomes predictable.
Strong Law Enforcement: It may seem silly and out of place but a strong law enforcement system helps to keep the business environment fair and equitable. When businesses can be cheated when making partnerships, employees embezzle and politicians bribed there is lots of risks built into the environment. Businesses want to know there is a deterrent and opportunity to regain what is lost through unfair practices. You will find that China as well as most nations outside of Europe or the U.S. has difficulty curbing crime.
Sound Fiscal Policy & Self Adjusting Markets: American policy makers have been generally concerned with how well the economy is doing. The democratic system allows the population to remove senators, presidents and congressmen out of office when they are not producing results. Therefore, a single politician can complete little damage in a single term. When small mistakes happen the markets can adjust themselves by offering something new that makes money. For example, if people demand companies to reduce pollution then these consumers will gravitate towards clean businesses while leaving the rest of the businesses behind.
Weaknesses of the American Business:
Poor Public Education: The American education system is declining and children are falling behind much of the world in terms of science, languages, math, and more. The advancement of these core subjects are important for the improvement of society as the new high-tech world will need scientists and technology workers like never before. However, as we keep allowing skilled workers to immigrate our school systems are falling behind only because there is little direction and lots of politics.
High Labor Costs: Workers are cheaper then they are in other countries. The problem in the U.S. is that companies aren’t getting what they are paying for. The average high school graduate is barely able to grasp the concepts of a manufacturing business let alone work within it while the government raises the minimum wage. A Chinese worker is able to press a button like the American worker but for about 1/10th the cost. Only productivity will make the American worker worth his/her wages.
Taxes: American businesses pay a lot of money in taxes while companies from other countries may pay a lot less. The taxes in American businesses are simply extra overhead that must be pulled from the cost of the product. In a tight economy where people don’t want to pay extra the cheaper products (with less tax burden) will win out. Have you ever wondered what happened to the television and radio producers in the U.S.?
International Policy: America has come to mean, “bully” to many people overseas. To thwart America’s power is a sign of resolve and fashion. As our politicians continue to play favorites with countries that violate international law, demand compliance with American desires and try and finagle other countries its reputation declines. A bad reputation means that both international businesses and whole countries may not only distrust us but prefer to do business with someone else.

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The American economy has spun into an economic meltdown, including the largest drop in GDP growth since 1980. The constant blow to the nation’s consumers has drastically reduced spending power, causing depression worries.  A widespread drop in housing prices, dips in the stock markets and insolvency by highly trusted banks have left people with no other option but to stop spending and start saving. S&P/Case-Shiller statistics revealed that house prices in 20 big cities fell at the annual rate of 16.6%. There has also been a rise in the unemployment rate (6.1%) and is expected to move upwards further. Bloomberg forecasts that there may be another 0.2% increase in the last one month bringing the final statistics to 175,000 jobs lost. Reliable bank and credit sources have also lost shape and credit levels had already fallen to 3.7% in August.  Around the world, the Japanese and European economies are nearing recession and the global credit crunch has affected many more.Tomorrow’s US presidential election will help decide the policies that will be in force for the next few years. Cutting taxes can leave extra cash, and credible plans for long-term fiscal health need to be put in place. Obama’s plan to put $45 billion in reserve and investing $75 billion has got him 82% support from one of the leading online discussion network, Minekey. His plans to introduce a tax credit of up to $500 per person and many more such similar benefits may work well for the economy. Economic policies that act as stimulus to the present depressing economic status can act as a catalyst in raising current standards. Going by the trend set by people the world over, at the popular discussion network Minekey, Obama’s policies are well received and appreciated. Opinion polls conducted by Readers Digest also shows a mixed blend of nationals voting for Obama’s strong economical and financial policy proposals. A reality check on what is actually being discussed and agreed upon can be found at many of the online election sites, that have contributed to creating awareness about the current economic and political scenario. Strong recommendations on where to invest in the coming months and how well taxes can be cut down can be got from these discussion boards. They have not only generated support for the candidates, but also helped users to vote, discuss and express freely their opinions on the probable effects of these policy proposals.What happens after November 4th, 2008 is yet to be seen. What has happened so far may go for the better or worse after the introduction of new policies. The American economy and the election’s outcome can make a huge difference in global markets. While at home, jobs can be restored and houses can be saved, markets worldwide can manage to cross over again, if this consistent slump down can be slowed down and stopped eventually. The trend may continue up to the first quarter of 2009, after which there can be seen some vital signs of improvement. Policies implemented after elections may also take its own time to restore economic normalcy and stabilization. Meanwhile, those who have managed to save and do not use credit are those who may be able to sustain the economic depression.

American economy is experiencing yet another boom and bust cycle. History is repeating as America faces situations similar to the Great Depression of the 1920’s. Economic breakdowns like stock market crash, unemployment, real-estate crash and high-rentals are the most notable and attention-seeking features. Most part of this highly volatile situation is because of badly regulated markets and the fall of highly reliable banks like Bear Stearns, Lehman Brothers, Merrill Lynch and Morgan Stanley. America’s economic slowdown has also triggered similar effects in many Asian and European nations and inflicted extensive damages on many financial institutions across rest of the world.

Swift actions on the part of the US Federal Reserve have protected banks and to some extent have prevented the nation’s financial crisis from tumbling over. In spite of necessary bailouts given to financial organizations; housing and financial markets still bear the brunt of the sudden fall. And most importantly, American household issues are barely addressed anywhere in the schemes so far. But the recently held Presidential elections have promised a turnover from the current state of affairs. The government did act responsibly is some cases by introducing social security and unemployment benefits; but they are insufficient to enforce a drastic change in the nation’s economy.

After the advent of social collaborations on the Internet, social issues like financial and economic situations are widely discussed nowadays. There are discussion forums that allow the user to express his concern and also to create an opinion poll on any topic or subject. Since Internet has dissolved international boundaries, we can also see active participation from different nationalities, expressing their opinions and views.

Social networking can be used as a facilitating factor to improve the all-round awareness on the financial conditions and also to provide useful tips to users on debits, credit cards and insurance. Users can lead discussions and also cast votes for the most preferred and viable financial solutions. Through collective support for a common cause, these sites can enable positive changes and also provide mutual comfort during these troubled days.

To recover and stabilize from this point is a very long process. While governments and economy can take a few months, families may need more time to overcome personal losses. But, American economy and the citizens in particular have learnt a lesson or two through this year long struggle to make ends meet. Using appropriate facilitators like Internet and media, a positive change can be reinforced, not only providing solace to themselves; but to all other nations who have been hit by this economic slowdown.

 

 

Economy tempers American enthusiasm for the road
DENVER (AP) – Americans won’t be taking long road trips this summer – at least if the latest data on gasoline demand is any indication. The government reported Thursday that gas demand in the past four weeks was little changed from the same period in 2009 when the recession was in full swing.

Read more on FOX 6 News Birmingham

Ok here we go.

This is my personal opinion of why the American economy is falling and just why it may get worse. For decades now we have been losing in the industrial area. Our industrial landscape or infrastructure has been declining for years. We have become a nation of consumers not builders. Not much is made in this country anymore, we are buying everyone else’s products.

We have settled for cheaper products. We have shot ourselves in the foot. We went form the building industry, to a service industry and now we are just a nation of consumers. A nation of consumers can not survive on it’s own. It has no foundation to stand on and that is where we are now.

I would not mind spending a little more for a product knowing jobs are being created and the money staying here in the America. Cheaper is not always better. Another thing is that the Global Economy has not helped the US at all. It has helped a lot of other countries except the US. Other countries are now becoming captains of industry while we fall behind. This has been happening for decades and now it is all coming to a head.

I believe it kicked in high gear with the signing of NAFTA. That really started the ball rolling. Where companies went running over seas for cheap labor and putting American people out of work and industry. This is when the economical and industrial landscape starting declining. And now here we are about to go broke as a country. Well we already are, borrowing money from other countries just to stay afloat.

We are like someone in debt that continues to borrow money and keeps sinking even deeper. We can not keep this up indefinitely. Who do we have to thank for this? You guessed it our incompetent Government. Apparently the US Government has been tearing this country down for years without any plan for building it back up. They have only been catering to big business and big money. Doing favors for those contributing to their party fundraisers. Money first people second if at all.

These people in Washington that have been voted in have not been working for America. I personally blame Congress. Meanwhile they are trying to point the finger somewhere else. They make the final decisions, and their decisions are costing us are economy. That is why we are in the economical mess right now. We need new people in Washington to work for America not themselves.

It does not matter who is President if we do not build this country from the bottom up nothing is going to work. This is why a stimulus package and tax cuts will not work. It is like a business, it is built from the ground up not from the top to bottom. The top down plan does not work. If we do not bring industry back to the US the economy will totally and completely collapse.

That’s Obama for you. He’s says we’re out of money but promised $100 billion to the IMF this week (update: congress gave him $105 billion), which amounts to a bailout for European banks facing big losses in Central and Eastern Europe www.banking-business-review.com (original video at channel DolphinFilms)Join Ron Paul’s Campaign for Liberty, the most promising group pushing for legislation that will lead to sound money and restore liberty. Create a free user account and they will email you editable action alerts they foward to your congressmen. Please also sign the petition to audit the Federal Reserve on their home page. www.campaignforliberty.com

America, being one of the strongest economies in the world has a definite impact on the rest of the world. It has become imperative to analyze further for a better perspective. The current scenario in the economy is flooded with increasing costs especially in the energy and business sector, leading to inflation. The other leading question pertains to the credit problems of the nation. The outlook of the economy will depend on these two views with strong impacts on the public. Recession is when there is a contraction GDP for two consecutive quarters. According to the CIA-one of the trusted fact books, the GDP-real growth rate is at 2%, Inflation rate is at 2.96%, Unemployment rate at 4.6%. Over the last few months, the dollar is weak, the consumer spending has slowed down and the real estate sector has taken a bad hit. The unemployment rate has risen to 6.1% in August 2008, though there has been a marginal increase in the rate of the economy to 3.3. %, the productivity rate is strong at 3.4 %. With the Feds fiddling with the interest rates over the last year, their oversight in regulations has led to mortgage meltdown and banks like Lehman Brothers, Merrill Lynch, AIG; along with the rest of the economy is facing a financial crisis. The system seems to have fallen into a habit of privatizing the gains (in the name of executive compensation) and socializing the losses and further, plummeting the economy of the nation.

The government has issued a rescue plan – Emergency Economic Stabilization Act, 2008 to meet the above mentioned challenges in American Economy.

Will this work?This is the biggest question of all times. There seem to be hope in certain situations like a safer investment plan up-to$ 250,000 as cash deposit, 2 million Americans have found an answer to their mortgage problems, and, a reduction in abusive practices in the stock market. The rest remains to be seen as it is compounded by risk, anxiety and uncertainty. It has become mandatory for the average American to keep a hawk’s eye on the economy and act accordingly, to minimize personal risks and protect from a cash-crash. But, hope lies in the hearts, with the world coming together to support America in its difficult times.