United States – National Debt Ceiling, Deficit Reduction and Balancing the Budget

July 24, 2011

By Padmini Arhant

Leaders in Congress and White House held vigorous discussions on national fiscal crisis up until recent standoff disrupting political discourse.

The main focus was clarifications from each side in achieving the goal and winning congressional support for their specific agenda.

The White House request to raise debt ceiling by $2.5 trillion carefully analyzed by Congress.

Cut, cap and balance bill aimed at middle class, senior citizens and veterans from Republican majority in the House rejected in the Democrats controlled Senate.

Meanwhile the Gang of Six from the Senate presented their version highlighting tax reform alongside deep spending cuts creating a political puzzle with the legislative and executive branch struggling to arrive at a consensus urgently required to prevent national default portending serious ramifications upon failure.

Given the current national debt at $14.3 trillion extending credit limit by $2.5 trillion to facilitate borrowing for spending without revenues in the form of tax restructure and other sources exacerbates the debt situation.

Republican House bill targeting essential programs like Medicare, Medicaid, Social Security and Veterans benefits while demanding spending cap at 2008 level in the absence of revenues to accommodate White House $2.5 trillion credit increase is imprudent considering the prevalent economic conditions on unaffordable health care costs and high unemployment.

The Republican members’ mandatory requirement to balance the budget through constitutional amendment is an important strategy to restore fiscal order.

However the milestone cannot be reached on severe austerity alone.

Last year Bush tax cuts extension to the wealthiest individuals and corporations with extraordinary gains was overwhelmingly approved holding the optimistic outlook on job creation and economic revival yet to be realized a year later.

The agreement between Republican members and White House in 2010 on Bush tax cuts extension proved detrimental since the opportunity to rein in deficit then was missed with generous tax breaks to the top 10 percent thereby transferring the debt burden on the remaining 90 percent – the routine targets in fiscal management.

White House stance is claimed to be over trillion dollars in spending cuts i.e. domestic discretionary and defense spending combined in addition to $650 billion from entitlement programs such as Medicare, Medicaid and Social security.

The contention for the White House is revenues not measuring up to spending restraints from the Republican side.

White House determined to obtain debt ceiling increase to a tune of $2.5 trillion beyond 2012 elections.

White House expectation from Republican members is to raise $1.2 trillion income through tax restructuring that would lower tax rates by broadening base and eliminating tax loopholes plus deductions to maintain balance.

Republican House members on their part favor slash spending and no revenues especially tax related options not considered in the equation.

The pragmatic approach to the highly contentious issues – raising debt ceiling and taxes simultaneously with drastic spending constraints not sparing Medicare, Medicaid, Veterans benefits and Social security could be rationalized beginning with two major resolutions.

It would be economically sound to abandon impulsiveness when searching for practical rudiments to complex fiscal conditions.

Following precedence on debt ceiling extension is not suitable in the highly volatile global environment featuring promising gains and precipitous decline in individual and overall growth.

Similarly, compromising entitlement programs such as Medicare, Medicaid, Veterans benefits and Social Security – the only safety net for average Americans in the political bargain is best safeguarded than dismantled to attain positive returns through productivity and consumerism from healthy, able and economically stable citizens.

First and foremost, review and re-organize budget appropriations.

Budget financing for current expenditure already available in discretionary as well as defense allocations, tax reforms addressing tax evasions and deductions for luxury purpose rather than tracking the middle and lower income stimulus programs returning to the economy being the consistent consumer segment is a straightforward approach.

Exploring savings and revenues for government operation could begin with freezing salary increase and perquisites availed by Congressional members and federal agencies top management including the executive branch for two years.

Poignantly wasteful spending by Congress and federal organizations on travel and trimming bureaucracy with efficient technology could bring some relief.

Reviewing trade tariffs, levies and fees applicable on imports and providing incentives to corporations for local manufacturing and industrial expansion would trigger economic upward trend.

Selling or privatizing government owned buildings and tangible assets could assure cash conversion.

In an attempt to enhance the super wealthy income status – lowering tax rates for the rich and concurrently imposing taxes viewed negligible against the underemployed American work force tilts the scale higher again on the middle and lower income groups barely surviving in the harsh economic environment.

Corporations like General Electric innovative techniques to not only avoid paying taxes but also receiving tax refunds on zero tax payments are the kind to be blocked and dues collected retrospectively to fund legitimate services.

Protracted government operations and congressional offices replicating functions could be centralized to perform under single unit directives and supervision.

U.S. taxpayer bailouts of banking industry from 2008 to date – toxic assets removal from bank balance sheets with treasury intervention using taxpayer funds enabled banks to avoid bankruptcy,

Since rescue with taxpayer funds – banks have not eased the credit crunch experienced in commercial lending, housing market and small business stalling progress and economic recovery.

Accountability on interests owed and remaining principal balance from the bailout recipients could aid treasury from potential national default considering the banking sector’s record profits largely directed to CEO‘s extravagant bonuses and stock option distribution adhering to business as usual practice.

Eliminating tax subsidies to energy industry exempting clean natural resource energy production,

Nonetheless pursuing fossil fuel producers are some aspects of savings and revenue prospects to assist in debt reduction.

Environmental damages from gross negligence as witnessed in Gulf coast oil spill and repeat offences restoration costs collected from energy, pharmaceutical and agricultural chemical fertilizer companies…would supplement state and national income.

Without having to raise debt ceiling now or in the future, the unused budget allocations not excluding redundant expenditures could be identified for budgetary requirements.

Lowering tax rates from 35 to 29 percent to the top bracket could be incentivized for domestic investments and job creation instead of the reduction standardized that is otherwise held in offshore tax havens and Swiss bank accounts.

Again reiterating the fact that mortgage interest payments and other genuine deductions to middle and lower income groups representing the vast active consumer base and labor force routinely reinvested back in the economy.

Therefore any drastic initiatives to terminate essential services to Senior citizens, veterans and vulnerable demography notwithstanding economic stimulants to middle class America would fall back on the state ultimately affecting national GDP.

The House Speaker John Boehner and Republican House members’ position declining debt ceiling adjustment is relevant in light of alarming national deficit at $14.3 trillion and inevitably escalated with $2.5 trillion borrowing that could be procured from within the budget and monetary instruments at the treasury.

At the same time, Republican Congress in the house and Senate cannot avert default without meaningful and realistic fiscal solutions consisting revenues with tax reforms, levies and payments from Wall Street for causing economic and environmental adversity.

Although spending cuts targeting Main Street is the predominant component in every proposal not sparing the economically vital programs like Medicare, Medicaid, Veterans provisions and Social Security,

Republican majority in the House – Legislation titled cut, cap and balance primarily slashed and deprived significant population from basic existence.

White House plan extracting $650 billion Medicare, Medicaid, Veterans and Social security is in coherence with Republican strategy – streamlining funding for fundamental needs and tampering with robust Social security system.

Senate Gang of Six debt minimizing strategy admittedly contains 74 percent deep spending cuts and 26 percent revenue – the estimate cited as inadequate by the White House and,

Last but not the least –

Senate Republican minority leader Mitch McConnell offer yielding to White House on elevating debt ceiling generates a perception of political maneuver due to onus entirely on Democratic administration undertaking huge deficit hike likely to impact democrats in the 2012 election.

Hence ascertaining wealth in possession, income flow from taxes and other revenues juxtaposed to discretionary, defense and Congressional frugalities could provide for various government obligations.

In terms of deficit containment – ending the wars in Afghanistan, Iraq, Pakistan, Yemen and Libya and divestments in economy, health care, education and infrastructure repair and renewal is the only viable permanent remedy to rebuild the nation.

Constitutional amendment to balance the budget would not be sustained as long as the unsubstantiated unaffordable indefinite warfare remains the agenda for any administration.

The lawmakers and the White House passion to bring troops home from all corners of the world and sincere engagement in constructive dialogue leading to fruitful negotiations on all issues – fiscal matter in particular would exemplify congressional pledge towards national and public interest.

With the nation on the brink of financial insolvency communication breakdown and obstinacy for political reasons perpetuates the problem and adversely impact incumbents on both sides.

Esteemed members in Congress and White House are urged to resume talks by isolating political differences for bipartisanship on budget –

Without moving debt ceiling,

Preserving Medicare, Medicaid, Veterans and Social security funding,

Expeditious tax overhaul for ongoing legitimate income,

Exploring further income options on federal government activities and,

Finally concluding wars conducted on borrowed money from overstretched credit limits and external creditors viz. China and Saudi Arabia.

It’s time to halt the destructive course and steer the nation forward with thoughtful decisions relieving the present and next generation from burgeoning debt as long lasting legacy and tribute to the brave hearts for their sacrifice to the nation they defended in all frontiers.

Hopefully wisdom and rationality would guide leaderships in the peaceful reconciliation of fiscal and monetary policy.

When diverse ideas recognized and formulated to promote common cause that guarantees satisfaction to all then none left behind in their aspiration to rise to the occasion.

Good Luck! To all members for successful legislation on national debt reduction, adopting fair income expenditure methods in balancing the budget and diligently reverting to budget surplus than relying on enlarging unmanageable debt ceiling.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

 

 

 

 

 

 

 

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

World Economic Forum 2011 – Davos, Switzerland

January 28, 2011

By Padmini Arhant

The world economic forum is currently held in Davos, Switzerland. Many issues apart from the economy are discussed at this large consortium.

Economy is the priority for the population struggling with high unemployment, housing market decline from foreclosures in addition to credit crunch experienced by potential home buyers and small businesses alike.

The bank bailouts to eliminate toxic assets off the balance sheet and facilitate lending has been mostly utilized for mergers and acquisitions with ‘too big to fail’ status intact – the precise factor that prompted taxpayer funds interjection into the crumbling finance industry.

Corporate profits across the industrial spectrum are exceedingly high not barring financial institutions yet the jobless rate and liquidity in the credit market is stagnant exacerbating the ordinary citizens’ plight.

Manufacturing sector is drastically affected in the globalized economy. The developed and developing nations are confronted with reviving blue collar jobs desperately required to ease suffering among the working class.

Corporations incentivized with generous tax cuts, taxpayer funded capital infusion and labor unions suppression continue to venture overseas in search of mega profits ultimately shared among top management through huge bonuses while depriving the hard working majority the livelihood.

The offshore dealings might be lucrative for the corporate shareholders and the respective governments with foreign exchange reserves, the labor force over there are marginalized in terms of comparable wages and employment benefits.

Again factory workers in poorer nations are often exploited under harsh economic and political conditions attributed to multinational dominance in the regions receptive to foreign investors.

Environment abuse in the globalization era has been catastrophic for the poorest people living near the industrial sites.

The weak environment standards maintained predominantly to accommodate energy, pharmaceutical…industries’ policies in the developing nations are proved detrimental to the local residents diagnosed with serious health problems.

In the industrialized world, the lower income groups are exposed to health hazards emanating from chemical industrial waste and oil spills witnessed lately with pervasive impact on all living species.

Therefore the corporate ethical conduct in the domestic and international operations deserves attention with effective remedies to restore meaningful capitalism and globalization pursuit.

Inflation is a legitimate concern without having to raise interest rates in borrowing given the real estate slump and limited credit availability having a stranglehold on the national economies.

In order to increase supply to the growing demands of any goods as an alternative inflation control measure – the businesses need finance in the prevalent restricted credit facilities and the banks with capital have responsibility to lend qualified entrepreneurs thereby promoting job growth, consumer spending and investor confidence – all relevant to stimulate the global economy.

The bankers’ claiming the existing credit control is the result of the regulatory imposition in the wake of sub-prime and hedge fund mis-management does not bode well,

Since they could not apply to all financial products that could otherwise paralyze the credit networks representing the fundamental economic source.

Sound monetary policy allowing responsible money circulation and the currency value determined by market forces rather than arbitrary means could prevent currency devaluation disputes and trade wars contributing to disproportionate surpluses and deficits among economic powers.

Fiscal policy is focused on deficit reduction through austerity mainly targeting programs like health and education for the most vulnerable demographics.

Denying affordable educational access to present generation is prohibiting better economic future made possible with qualified efficient workforce and taxpayers in the competitive global settings.

Spending cuts in alarming defense expenditure and redundant wasteful projects instead of life dependent programs and services could produce desirable results in debt containment besides a healthy productive society benefitting all.

Generating revenue in the absence of tax hikes on the extraordinary income derived from the collective input distributed within privileged members in the society is evidently counterproductive for it escalates national debt other than widening the gap between the rich and poor.

Economic activities for growth stimulus are largely related to melting the liquidity freeze to enable cash strapped small businesses, retailers and manufacturers create jobs.

Resuming lending services to home buyers upon satisfying the eligibility criteria and refinancing options to help default home owners retain their property instead of losing in foreclosures with a negative impact on the national housing sales including the construction industry is guaranteed to expedite recovery.

Transparency in derivatives with mortgage securities identified as the primary cause in the 2008 financial market brink of collapse would build trust in the international security exchange.

Interest rates, transaction fees on credit cards and regular bank accounts still remain exorbitant despite the regulation passed to curb practices that led to phenomenal debt accumulation and bankruptcies in the United States.

Failure in adherence to legislation on predatory methods has no consequences with the banks conducting business as usual delineating Wall Street from Main Street.

The reforms in general are circumvented due to loopholes in the legislation and the political clout displayed with industry lobbyists winning $19 billion tax exemptions in financial reform, no premium caps in health care law, offshore drilling permits…confirming Wall Street control over U.S. political election and legislation.

Investments in infrastructure, green energy, innovative research and development in science and technology is paramount in the protectionist aspect.

However, there is no momentum in expediting projects perhaps due to inadequate funding and/or political reasons.

The industrialized and emerging economies pledge to the developing nations has not been delivered in action on the economy and environment that could essentially alleviate poverty, hunger and disease endured by many across the globe.

Political instability arising from oppression i.e. lack of freedom and individual rights is prompting citizens’ protest against repressive governments sheltered until now with diplomatic ties and trade relationships by powerful ‘democracies.’

Civilian uprising in Egypt and Yemen reveal the breaking point in public frustration towards
authoritarianism. Political independence in these countries is long overdue.

The overthrown government heads of the state are provided refuge as seen with Tunisian former President Ben Ali received by Saudi Arabia.

These events are indicative of the established complacency to undemocratic elements disrupting political, economic and social progress.

United States, France and Saudi Arabia were reportedly involved in Lebanon’s recent political fallout disabling government services in the sovereign nation.

Reluctance to expand U.N. Security Council permanent membership in acknowledgment of twenty first century geopolitical dynamics is an impediment to world peace. The ongoing polarization efforts foment terrorism and militancy used as the perpetual warfare premise.

Hence international solidarity exemplified in rejecting the status quo is imperative for fair distribution of global resources, honoring individual liberty, political rights, social equality ultimately leading to universal economic prosperity.

World economic forum is a unique opportunity to resolve myriad humanitarian challenges through constructive dialogue and powerful strategies for a new peaceful beginning.

Wishing a successful economic summit in Davos, Switzerland.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Unemployment Benefits, Tax cuts with Skyrocketing Deficit

December 17, 2010

By Padmini Arhant

The bill is passed in the Senate and currently making its way in the House of Congress despite the legislation’s long term repercussions on national deficit and social security.

In the deal struck between the current Republican minority and the White House – the deficit spending through tax cuts extension for the 1% wealthiest including estate tax concessions is hailed as a bipartisan victory against the overwhelming public opposition to the reckless compromise.

As stated earlier in the article titled Bush tax cuts, Unemployment benefits and National deficit, December 7, 2010 published on this website – the average Americans are burdened with the liability from the tax credit to the super-rich.

They are being punished for the unemployment benefits extension, child tax breaks and college tuition credits in the bill – the combined costs of these desperately required provisions is significantly lower than the over $700 billion expense from the tax cuts to the top 1% wealthy in the country resulting in the total spending of $858 billion added to the skyrocketing national debt.

The two year tax cuts to the affluent members in the society are expected to become permanent and the social security with payroll tax holiday targeted for privatization potentially wiping out the only safety net for the retirees while the retirement period prolonged to offset national spending.

It is a remarkable win for the Republican minority soon to be the majority in the House with further representation in the Senate.

Unfortunately the voices for the average Americans in Congress are drowned by the political agenda to implement policies aimed at gains in the short-run with no due concern for future ramifications on the fiscal irresponsibility.

The strange partnership with similar motives is a sheer betrayal having been elected with the overwhelming democratic base votes and thus far delivering to the campaign financiers in Wall Street and military industry complex.

Beginning with Health Care Reform – the mandatory health care subscription without reining in on the health insurance industry and Bigpharma protocol alone is a huge setback for the vulnerable majority – the sick, the middle income and the senior citizens.

Likewise in the financial sector regulation – the $19 billion tax exemption to Wall Street – the primary source for the global economic recession is a major boost to conduct business as usual weakening the regulatory impact.

The Republican vote favoring Wall Street sought by the White House against a democratic vote seeking robust measures blocking loopholes to avert repeat economic disaster is disillusionment and disappointment for the electorate anticipating real change that also in part contributed to the midterm election outcome.

In the areas of warfare and foreign policy – the Bush-Cheney hawkish strategies vigorously carried out tarnishing the national image and seriously jeopardizing credibility in the international domain.

Now with the Bush tax cuts agreement to protect the wealthy is an affirmation of the ideological priorities substantially affecting the national deficit in addition to widening the gap between the haves and the have-nots.

It is clear from these developments that democratic aspirations in terms of industry regulation, effective economic policy, peace and diplomacy against nuclear threats continue to remain far-fetched objectives when acceding to Republican demands and upholding oligarchy principles – profit by any means even if it is proved detrimental to vast population and national interest.

Considering the status quo the only hope to restore democratic values and pragmatism is the substantial public participation in the legislative process through various communication channels conveying the message not only to their elected representatives but also the executive branch for the evident complacency.

Only the citizens’ will to enforce change at the political, economic and social fronts could lead to desirable progress in a democratic system.

Democracy is functional when the government of the people committed to the electorate entrusting power for collective actions benefiting all rather than the privileged members in the society.

History is testimony to the fact that people power never failed in challenging any rule other than the republic.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Bush Tax Cuts, Unemployment Benefits and National Deficit

December 7, 2010

By Padmini Arhant

The 111th Congress with Democrats still in control of the House and Senate is challenged by the White House capitulation to the Republican unsustainable deal on Bush tax cuts.

Fortunately the House passed the bill per initial democratic plan – allowing tax cuts to the wealthy expire and granting permanent tax cuts to the families with income $250,000 and below.

Speaker Nancy Pelosi leadership and the House representatives’ commitment to the middle class America is commendable.

‘Political Irony in Republican Congress Victory’ – Article published on November 18, 2010 under ‘Politics – United States’ category on this website highlighted the specifics on Bush Tax Cuts and Protecting Social Security for America.

There are different proposals from the majority and the minority in Congress.

Republican members unanimously dedicated to the top 2% wealthy Americans getting wealthier at the rest of America’s expense pushed tax cuts extension for the multimillionaires while disregarding their irresponsible claim’s devastating impact on the ballooning deficit – the primary political slogan that enabled Republican victory in the recent mid-term election.

Unlike the Republican minority, the Democrat majority are divided on this issue.

The Senate Democrats have laid few options – Some favor the House version which is the initial Democratic strategy outlined above. It is unequivocally a pragmatic solution to the status quo.

Other Senate Democrats are considering $1 million threshold for tax cuts redefining the middle class category that is contradictory to reality.

Yet another democrat’s perspective opposes any tax cuts alongside rising deficits.

“We can’t afford any of these tax cuts,” says Rep. Bobby Scott (D) of Virginia. “It is hard to imagine that extending all of the tax cuts at a cost of $3.7 trillion is fiscally irresponsible but extending $3 trillion worth of tax cuts [to families earning less than $250,000] is somehow fiscally sensible.”

It’s obvious that the opposition to tax cuts for middle class America stems from blanket assessment of the fiscal crisis without any consideration to the slow economic growth and rising unemployment predominantly affecting the poor and the middle class not the super-rich.

According to the latest reports the deal between the White House and Congressional Republican members comprises the following;

Bush tax cuts extended at all income level for two years – the cost of this compromise is estimated at $700 billion over the next two years.

Estate tax capped at 35 percent after $5 million exemption to each wealthy individual – This alone would deprive the economy of the desperately required revenue contributing further to the alarming deficit.

The Republican two year extravagant tax breaks to the wealthiest is in exchange for the jobless benefit to the long-term unemployed up to 13 months at the anticipated $60 billion cost and last but not the least,

Social Security payment is diverted from retirement savings and added to the present income through 2% payroll tax reduction for workers.

However, this detrimental step is substituted for the general tax relief provided to the middle and lower income groups in the previous year economic stimulus.

Otherwise the bill eliminates last year tax credit from the middle and lower income families’ paychecks and utilizes their only safety nest thus far – the Social Security for consumer spending in the payroll tax diversion.

It’s a dangerous precedence with the possible depletion of reliable income to the baby boomers nearing retirement notwithstanding the easier access to Republican goal in privatizing Social Security and increasing the retirement age similar to the unpopular Pension bill enforced upon the people in France.

The contentious issues are the disproportionate concession to the 2% with an extraordinary disposable income mostly invested in personal holdings against harsh imposition on the 98% hard working middle and lower income groups burdened with not only diminishing income, spending cuts on life dependent programs, savings replaced for tax credits but also expected to pay substantially towards national debt mainly accumulated from irrational economic and defense policy.

Above all the Republican members’ euphoria on the pending bill –

‘Not raising taxes on anyone in the country’ is ideological for it rejects the ramifications on national deficit. Again the issue presented as pivotal to the conservative agenda during the 2010 election.

If there are no tax hikes for two years, the essential unemployment aid up to 13 months in the provision combined with a magnanimous estate tax credits,

How do the decision-makers of this deal propose to trim the burgeoning national deficit?

Are the Republican members complacent to the Borrow and Spending concept that was targeted against the Democrats in the past two years irrespective of the Democrats Pay-go rule to fund the key economic legislations?

Given the undercurrent in the U.S and China relationship from currency devaluation to North Korea skirmishes – China the major U.S. creditor may not volunteer to be the Santa Claus.

Who is then expected to bailout the wealthiest Americans in the GOP sponsored –

Who wants to be a billionaire contest?

It’s imperative to dispel the myth surrounding the bizarre agreement that Republican minority have control over the crucial legislation when the Democrats are the majority in the legislative branch and the White House currently has the power to do the right for the suffering Americans as demonstrated by the House Democrats on this bill.

Republican legislators assuming cart blanche to steer the critical economic decision despite the catastrophic effects on their constituents and the nation at large is purely political besides betrayal of the electorates’ trust in the Republican action to protect self-interest over the average American interest.

In fact, Republican party awaiting House dominance and increased Senate representation is on national watch to deliver their campaign promise on containing the growing deficit, coordinate efforts in easing unemployment not excluding jobless aid to the millions who elected them in the fall election and transcend Washington partisan culture visibly promoted by special interests.

The Speaker-elect John Boehner emotional speech upon victory reminiscing the hard times experienced to achieve the American dream is a common factor in the contemporary society.

Relevantly, Republican lawmakers’ allegiance to the campaign financiers instead of the people they are elected to represent clearly revealed in their failure to address the American plight.

In the difficult economic period the GOP priority to undermine main street struggles is regrettable sending a strong message to the electorate to exercise diligence during election since Washington is not amenable to change.

Therefore the people power must exert pressure on the elected representatives with a reminder about the legislative responsibility towards the constituents and the nation they are elected to serve during their term in office.

The republic position in this matter is absolute and that being “No deals on tax cuts for the wealthy.” Overwhelming electorate disapprove the GOP reckless demand to shift the economic liability on the average Americans – the driving force of the economy.

Hence the Senate Democrats and moderate Republicans focused on fiscal constraints have a unique opportunity to exhibit bipartisanship in passing the House approved Bush tax cuts bill.

Ignoring public concerns is a political misstep and often realized in the electoral results. If GOP won in November 2010 then it does not take long for the political tide to turn against them and that is politics.

It is incumbent upon the esteemed Senate to acknowledge the American families’ hardships and the escalating deficit when casting votes on this particular bill evidently vital for national and global economic recovery.

Good Luck! To the Congressional members for a successful passage of the prudent economic legislation.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | 7 Comments 

G-20 Seoul Summit 2010

November 14, 2010

By Padmini Arhant

The G-20 Summit was held in Seoul, South Korea on November 11 – 12, 2010.

Among many important economic issues, the trade imbalances and currency devaluation had drawn the representatives’ attention.

The two leading economies – U.S. and China expressed concerns over the respective trade surpluses and deficits attributed to currency management.

Likewise, the U.S. Federal Reserve proposal to interject $600 billion for economic revival expected to weaken the U.S. dollar while strengthening exports was met with resistance from competing trade partners such as China, Germany, United Kingdom, Brazil…citing the undue advantages to U.S. in the overseas export market.

It is well known that China has benefited from maintaining renminbi under market value boosting its trade to different nations especially the United States due to MFN and the primary creditor status.

Accordingly, China’s trade surplus would be different when evaluated in real market conditions.

If United States were to pursue similar trend with Federal Reserve intervention then both economic powers would essentially contribute to trade anomalies with their trading partners across the globe.

The arguments on both sides are valid in terms of the policy’s impact on the individual and global economy. Arguably the importing countries, developing nations in particular would be drastically affected with cheaper exports flooding their market giving rise to trade deficits and inflation.

Balance of trade between nations enhancing mutual economic prospects is critical in the competitive global environment.

Therefore, the G-20 leaders’ general agreement on this issue to move toward market determined exchange rate systems deterring currency devaluation and exchange rate or capital flow volatility is a sensitive measure in dealing with trade or currency related disputes.

United States as a consumer economy with Germany and China being the export economy is another contentious issue demanding necessary adjustments to the disproportionate trading activities.

Further, U.S. economic recovery is vital for the global market dependent upon U.S. consumerism and offshore capital investments.

The advanced economies could perhaps share the burden with the United States by allowing imports from low income countries and entry to US manufactured high end goods in return for their shipment to US shores.

At the same time, U.S. targeting the emerging and developing nations for exports has a greater responsibility in adopting fair trade practices rather than free trade impositions such as NAFTA, DR-CAFTA…that is proved to be devastating for the vulnerable population in these regions.

The globalization concept is conspicuously embraced at the meeting with pronounced commitment to reject protectionism.

Yet, the irony is the trade and currency wars prompting decisions to stimulate domestic growth through local demand and supply as stated by China as well as the industrialized nations’ fervor to compete for national productivity unequivocally confirms protectionism.

Since the globalization era, the government and business focus has shifted from their domain to international markets as experienced in the United States that led to the manufacturing sector demise eliminating blue collar jobs and ultimately having a ripple effect on other industries especially the small business economy.

Additionally, the globalization woes were not restricted to the alarming unemployment in the United States and elsewhere. The financial sector deregulation for over three decades resulted in the worst hedge fund mismanagement nearly bankrupting the interlinked economies in the prevalent globalization.

As for the struggling economies, globalization through treaties deprived agriculture and small scale industries survival witnessed in Haiti, Mexico, other parts of Latin America and Africa.

Globalization is effective when trading between nations promotes economic growth for all unlike the purely profit oriented corporatization of developing nations for cheap labor and natural resources that mostly benefits the big corporations wielding power on the political systems.

Hence, protecting the agriculture, SME (small and medium enterprises), independent entrepreneurships is crucial for realistic economic gains and in achieving the UN adopted Millennium Development Goals.

In this respect, the G-20 Financial Inclusion Action Plan, the Global Partnership for Financial Inclusion and a flexible SME Finance Framework providing increased access to financial services and expanding opportunities for poor households and SME is praiseworthy.

Simultaneously, the IMF and World Bank elaborate coordination in assisting the national and regional economies is an important step to mitigate disparities and alleviate vast majority suffering.

However, the G-20 assurance translated into action could significantly improve the economic standards of the rapidly deteriorating middle and low income groups in the global society.

The G-20 strategies for the finance industry with a new financial regulatory framework comprising instruments and practical tools to avert the repeat erroneous undertakings,

Notwithstanding the oversight and supervision amid several preventive adaptations with financial assistance is a formidable structural reform.

Besides the macro prudential plan on fiscal, monetary, economic and trade policy to expedite economic and job resurgence would be comprehensive in addressing the universal challenges emanating from the complex global transactions.

The debate on deficit control and economic stimulus programs reflected the stark contrast positions across the Atlantic with Europe’s preference to slash national debt through austerity and U.S. reliance on deficit spending.

Although both methods are relevant in debt reduction and economic growth acceleration, extreme measures are counterproductive with an inevitable setback in the desirable objectives.

Adopting moderate course to obtain steady growth and deficit decline would guarantee the anticipated outcome.

Poignantly, France pension legislation passed despite the overwhelming public disapproval based on the bill’s detrimental effects is representative of mandatory implementations without due diligence not to mention the utter disregard for the republic financial security and personal well-being.

France government action to safeguard the minority interest at the majority plight is a misplaced priority exacerbating rather than resolving the economic situation.

Unfortunately, now the U.S. Congressional Republican members’ pledge to replicate the French authorities’ act by attacking Social Security and prolonging retirement age signifies a pattern designed to reverse progress.

American citizens across the political spectrum have a moral obligation to defend the retirement savings through Social Security. The elected officials attempt to jeopardize the only reliable source of income would drive the economy to the point of no return.

Regarding climate change – The G-20 affirmation to safeguard the marine environment is notable but the unwillingness to renounce fossil fuel use poses an impediment in combating global warming.

The unanimous clean energy application throughout the world is the only alternative to life sustenance on the planet.

By and large, G-20 scope to limit risks in the financial sector, stabilize the global financial markets, build a job generating economy, narrow the development gap, eradicate corruption, facilitate modern infrastructure are among the impressive immediate aspirations.

G-20 future meetings could broaden the aspects by specifying the programs in fighting hunger and disease through food distribution and affordable health care at the national and global front.

The political and business leaders’ consortium to recognize failures and devise constructive policies is commendable at the G-20 Summit.

Cooperation and sincere involvement for greater good would enable the G-20 nations in delivering the promise to the world.

Good Luck and Best Wishes to the honorable world leaders in reaching the milestones on global peace and prosperity.

Congratulations! To South Korean leadership on the successful G-20 summit hosting.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Bust Tax Cuts Expiry and Permanent Extension to Middle Class America

October 18, 2010

By Padmini Arhant

The Congress members were debating on the contentious Bush tax cuts for the top two percent wealthiest scheduled to expire in 2011,

While introducing the permanent tax cuts for the middle class and small businesses, the two most vulnerable groups in the economy with the skyrocketing national debt.

The hard to detect ‘Who is Who’ in the contemporary national politics, there is one thing that is crystal clear, the real voices for democracy representing the people are being shut out by the myriad of influences from all directions predominantly focused on their personal agenda.

This particular bill deserves the republic attention for it concerns them and their future with the multi-trillion dollars liability transferred to the average citizens and their dependents expanding over several decades.

The arguments are all about whether or not to let the infamous Bush tax cuts to the top 2% wealthiest in the society expire and allow permanent tax cuts to individuals or the combined income up to $250,000.

Those earning above $250,000 would be subject to the applicable progressive tax structure i.e.

After the permanent tax cut on the initial $250,000, the residual or remaining income to be taxed appropriately under the new law.

Although it is a viable proposal the political factions are deviating from the course doing harm than any good to the interests they represent.

As such legislative process has increasingly become a ceremonial event than a result oriented action marginalizing the purpose behind every bill.

If the legislators were serious then they would direct their attention to the content and proceed with the bill introduced by the House Congress members – Reps. Raul Grijalva, Alan Grayson and Mary Jo Kilroy to protect the middle class and the small businesses alike.

It appears from the real power brokers’ bizarre approach that they are for it as much as they are against it leaving the public hoodwinked like with every other legislation experienced by the suffering average Americans.

The Republican Senators not surprisingly favor the Bush tax cuts extension perhaps indefinitely if possible and at the same time vehemently oppose the middle class permanent tax cuts.

What does it mean is the Republican members’ empathy for the super-rich living an extravagant lifestyle is a priority over the national deficit.

The Bush tax cuts to the affluent 2 percent is expected to add $836 billion to the explosive deficit not to mention the middle class and the small businesses punished with the tax liability for a prolonged period.

Contrarily, the Republican members explanation for their opposition to middle class permanent tax cuts is the rhetoric – ‘out-of-control’ spending contributing to the ballooning national deficit.

Now on the Democrats part – the Senate majority leader Max Baucus bill is aimed at permanent tax cuts to the middle class along with estate tax relief forever at 2009 levels on inheritances worth over $1 million dollars in addition to maintaining a historically lower 20% flat rate on dividends and capital gains.

The Baucus package is estimated to cost approximately $2 trillion still half of the Republican minority leader Mitch McConnell’s plan.

Nevertheless, the generosity to the wealthiest through perennial estate tax exemption would raise the national deficit by a phenomenal $250 billion dollars. Again the debt shared among the middle class and the small businesses to ease the pain on the wealthy.

In the House – the Blue Dog Democrats – the conservative wing of the Democratic party have demanded that the tax cuts be either extended to all – the middle class and the wealthy alike or abandon the concept in its entirety.

Otherwise, a simple and straightforward action has developed into a complex legislative rigmarole.

The only legislators with a sensible and pragmatic solution are the Progressives in the House of Representatives – Congress members Raul Grijalva, Alan Grayson and Mary Jo Kilroy in their bill with permanent tax cuts for the middle class and letting the Bush tax cuts to the wealthy expire offsetting one another without affecting the national deficit unlike the others.

It’s clear from the legislators’ positions that the wealthiest individuals and corporations have superfluous representation in Congress on both sides deeply committed to the rich campaign donors.

Hence, the only hope for the electorates entrusting power to lawmakers are the Progressives with a defined goal to improve the average American lives against all odds and yet they are viciously attacked on the campaign trail with malicious rumors and propaganda.

The majority American electorates are confined to the corporate legislators’ policies elevating rather than alleviating their plight parallel to the vertical national debt.

Therefore, the middle class, the small businesses and the income groups in the $250,000 threshold need to come forward and urge their representatives to vote for the Progressives’ House bill in this matter.

Evidently, the Progressives bill is guaranteed to expedite the economic recovery besides helping to move the nation forward.

Failure to recognize the electorates’ grievances would confirm the incumbents’ misplaced preferences and as the political candidates seeking re-election they are accountable to the voters, the victims in the corporate dominant and U.S. Chamber of Commerce funded campaigns as well as legislations.

With the midterm elections around the corner, the American voters have an awesome responsibility to exercise diligence in choosing their representatives to Washington and the State Capital.

The status quo is largely due to the power entrusted in candidacy fulfilling obligations to their campaign financiers instead of the constituents electing them to the public office.

Please request your Congress members to hold a special session and pass the Progressives House Bill on permanent tax cuts to the middle class effectively benefiting all.

If the Congress is adjourned then the electorate could have them return to deliver on this particular legislation prior to the election. The lost opportunity would exacerbate the usual uphill battle and potentially lead to the legislation demise.

Please act now to secure your economic prospects and save the future generation from the burgeoning financial burden.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Presidential Q&A Session

September 10, 2010

By Padmini Arhant

President Barack Obama this morning addressed the press corps on a variety of issues ranging from the economy to international affairs.

The President elaborated on the Congressional Democrats and the White House achievements thus far.

President Obama also laid out the economic progressive tax structure with permanent tax cuts for the middle class and those earning up to $250,000 income.

On the previous administration’s tax cuts expiration for the top 2% wealthy individuals earning above $250,000 – the economic strategy would benefit the higher income groups and not hurt them as claimed by the critics.

As the President explained – the first $250,000 earnings would qualify for the permanent tax cuts and only the remaining income would be subject to the applicable tax. Essentially 98% taxpayers might qualify for the permanent tax cut creating a vast middle income that would expedite economic recovery.

In terms of various appointments being stalled pending Senate confirmation – the President’s frustration was justified. Among them the Consumer Protection Agency Director position that needs to be filled in the immediate future requires bipartisan support in the Senate.

The consumer related problems on credit cards, mortgages and other financial commitments could be addressed effectively through the agency specializing in these issues.

The President also emphasized on the urgency to pass the bill facilitating small business loans through community banks for economic revival. The bipartisanship on this legislation is crucial for it would clarify the opposition minority stance in assisting the small business community worst hit in the economic recession.

In fact, the President urged on the bill to be approved upon the Senate resuming session in the coming weeks.

On the infrastructure plan – the President’s second stimulus $50 billion was raised at the news conference. Considering the proposal is self-funded by closing tax loopholes, any blockade would be political rather than economic.

Further, the $787 billion stimulus had funds allocated for this purpose and the combined investments would be a job booster upon $50 billion bill overcoming the Senate hurdle.

The economic plan is sound and guaranteed to generate jobs provided the Senators across the aisle extend their bipartisan cooperation to help the President and the Congress members jumpstart the economy to improve American lives.

Other matter at the session will be discussed individually.

Overall the President’s message on the economy and Israeli-Palestinian peace talks were very hopeful and optimistic.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Economy – The Job Factor

September 7, 2010

By Padmini Arhant

The major national concern among the American families are finding and retaining jobs.

There is no doubt that jobs are Democrats’ priority in the Republicans created deficit economy.

Not surprisingly, the response to unveiling the economic plan at this time is “Too little, too late.”

It confirms political expediency to oppose the Obama initiatives rather than extending bipartisan support to help the President save American jobs.

Contrary to the political mindset in the election year, it’s never too late to rescue American workforce and people in distress.

With the high unemployment in certain parts of the country such as Ohio, California, Nevada, Pennsylvania, Indiana…the workers disappointment and voters’ anxiety is about the jobs and the economy.

President Barack Obama eloquently laid out some job aspects in Milwaukee, Wisconsin on Labor Day. The infrastructure proposal for repair, restoration and rebuilding America has great potential for jobs in the construction and service industry.

The President also clarified on the self-funding of the $50 billion job creation plan. Allocating the revenue from tax loopholes is fiscally responsible for it would not affect the contentious national deficit.

Moreover, the remaining funds from the earlier $787 billion stimulus bill allocated towards infrastructure could be verified and appropriated around this time.

Another bill that requires the legislators’ immediate attention is the $30 billion funding to community banks for small business lending in the worst hit areas of the economy. Again identifying wasteful spending to pay for the short and long term job opportunities is economically prudent.

The American plight from coast to coast is clearly visible seeking attention from both the private and public sector. Perhaps, the bipartisan recognition to set the political differences aside and work towards a common goal in the economic revival benefits all.

Those who are opposed to government spending to create jobs need to focus on the economic outcome i.e. helping American families with income that eventually returns to the government through consumer spending and taxes.

Unlike the same opponents’ “no-objection” on defense expenditure for warfare not only consumes enormous budget proportion but also contributes to the national deficit – prominently the two simultaneous wars in Iraq and Afghanistan that triggered the rising deficit problem during the former Republican administration led by President George W. Bush and Vice President Dick Cheney.

On the Democrat side, easing taxations on Corporations pledged to generate jobs has already been enacted in 2009. Further, facilitating job growth in the manufacturing sector would minimize the blue collar job losses and boost the service industry alongside.

The national consortium comprising both private and public enterprises on job stimulus by exchanging ideas and resources is poignant to jumpstart the economy.

By providing specific reasons behind the recent layoffs and slow hiring, the Corporations representing the manufacturing, service and other industries could assist the legislators and federal authorities in understanding the issues – so that remedial measures are implemented for the much anticipated economic recovery.

Similarly, outreaching the small business and retail communities for the targeted assistance would bring relief to the struggling American families.

It’s not sufficient to display mere empathy in these tough economic times. Consumers and businesses are looking for simple to innovative solutions in accelerating the job growth.

Financial sectors have not complied with their end of the bargain in expediting job production, although it was among the criteria during the massive taxpayer bailout in 2008 and 2009.

Credit crunch still remains an economic impediment for small businesses and retailers. Household income having declined due to the job situation, lack of home equity and volatile investment returns are directly affecting consumer spending.

Monitoring the housing market by extending the foreclosure moratorium, $8000 first home buyer credit and affordable refinancing could ease the burden on the homeowners besides improving national home sales figures. These concessions have been tried in 2009 and proved to be positive for the housing sector.

Social security is yet another priority for the baby boomers and retirees dependent on the income. The conservative candidates’ threat to privatize social security in any economic conditions is a political stance more than a pragmatic approach.

Job oriented economic resuscitation is much anticipated among the American workforce and made possible with the combined economic decisions from the private, state and federal institutions.

Above all, the legislators’ bipartisan actions in addressing the serious unemployment status serve as the litmus test for the congressional candidates in the coming elections.

The incumbents and the new candidates have much better prospects of prevailing upon their legitimate demonstration including actions to invigorate job market rather than criticism on the unemployment data.

Jobs are justifiably the primary expectations among the American electorate. Therefore, the private, the state and the federal investments in this respect is paramount.

While the private sector flourishes from consumer spending and investor holdings, the government will gain from tax revenues.

There is no time to procrastinate on this matter as American families are striving hard to provide for their loved ones and a majority of them are in dire financial crisis.

Hopefully, the lawmakers, corporate executives and the economists’ collective actions will soothe the economic pain experienced by many working families in the harsh and competitive job environment.

Your concerted efforts will be appreciated by the suffering American workforce when the economy turns around for common good.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Economy, Jobs and Housing Market Assessment

August 30, 2010

By Padmini Arhant

The economy, job and housing market are the most important issues for the American electorate.

An overwhelming population is experiencing tough economic situations one way or another and there is legitimate concern over the rising deficit as well.

President Barack Obama and Congressional Democrats achievements, work-in-progress including the remedial measures are elaborated for better understanding and fair assessment.

Upon assuming office President Barack Obama and the Congressional Democrats passed the economic stimulus bill worth $787 billion to salvage the economy from ‘Great Depression,’ at that time.

This step was vital for the U.S. and the global economy on the precipitous decline following,

The previous administration’s deficit spending on two simultaneous wars in Iraq and Afghanistan,

Facilitating financial market recklessness,

Free market deregulations in finance, health and energy industries,

Widening deficits through financial and auto industry bailouts with no accountability

Allowing Corporations to evade taxes on domestic and overseas earnings with adverse effects on national revenue.

Extending tax cuts for the wealthy – are the few recipes that triggered the economic disaster.

The policies were implemented at U.S. taxpayers and the average Americans colossal expense.

By neglecting the national requirements – prominently the job and housing market deceleration, the infrastructure repair and restoration, education, health, social security, veterans’ health care, small businesses and the American families in general.

President Barack Obama then introduced “The American Recovery and Reinvestment Act” for $787 billion in February 2009.

It comprised –
• $288 billion in tax cuts.
• $224 billion in extended unemployment benefits, education and health care.
• $275 billion for job creation using federal contracts, grants and loans.

The main objective was to invigorate economic and job growth at an estimated 900,000 – 2.3 million jobs.

Further, the stimulus fund was spread over ten years with the first three fiscal years receiving the major allocation.

The Congressional Budget Office (CBO) projected the stimulus funds would boost GDP growth by 1.4% – 3.8% at the end of 2009.

GDP growth for Q4, 2009 – 5.6% when including the businesses low inventory replenishment.

Otherwise the growth reported to be 1.8%.

According to (BEA) Bureau of Economic Analysis, Trading economics – Bloomberg – Thank you.

“The current GDP growth is 2.40%, with Growth rate – 1.60%, Inflation rate – 1.20%, Jobless rate – 9.50%, Interest rate – 0.25%.”

A significant increase when compared with the negative GDP growth -6.80% in December 2008.

The economy has moved from the negative to a positive trend with a present annual growth rate at 1.60%.

Beginning 2010, the economic figures in the first and second quarters are very encouraging and attention worthy.

GDP before adjusting for inflation in Q1 (Jan – Mar) 2010 rose to 4.8% and Q2 (Apr – Jun) 2010 – 3.6%.

GDI – Gross domestic income – the individuals, private and public sector combined income reportedly increased by 2.3% annual rate for Q2, 2010 after gaining 4.1% in the first quarter – Q1, 2010.

Corporate profits after an impressive 10.5%increase in Q1, 2010, rose by 4.6% for Q2, 2010 – still maintaining the gain from Q2, 2009.

Similarly the higher earnings by 39 percent in Q2, 2010 is relatively progressive than the 2009 second quarter.

Consumer spending for Q1, 2010 – 1.9% and Q2, 2010 – 2% exceeding the previously expected 1.6% pace for the second quarter.

Wages and salaries for Q1, 2010 increased by $6.5billion from the fourth quarter i.e. Q4, 2009.

Company inventory in Q2, 2010 was 0.65% against 2.64% for Q1, 2010. However, the business capital expenditure on structures, equipment had surpassed the prior projection of 22 percent to 24.9 percent.

Trade gap seemingly grew to $445 billion for Q2, 2010 in excess of the previous estimate at $425.9 billion confirming the import level at 32.4%.

It’s clear from the data that the economy in 2010 is comparatively a vast improvement to 2008.

The modest annual rate 1.60% is attributed to numerous factors:

Despite 39 percent increase in 2010 second quarter corporate earnings, the companies have contracted inventory spending, payrolls and lowered employee wages contributing to sluggish job growth and household income reduction eventually having an impact on the economic stimuli – the consumer spending.

Consumer spending also affected by the lack luster housing and stock market performance with majority households dependent on investment income.

Notwithstanding the ripple effect on the small businesses relying on retail purchases.

In addition the rising imports at 32.4 % suggest the lagging manufacturing industry require substantial private investments to provide the anticipated jobs.

Perhaps, capital gains tax relief might incentivize corporations to promote jobs in the manufacturing and service sector. The consideration could ease the burden on Congress in extending unemployment benefits to the jobless.

Per Recovery Accountability and Transparency Board that oversees spending under American Recovery and Reinvestment Act of 2009 available at:

http://www.recovery.gov/Pages/home.aspx – Thank you.

Recovery funded jobs reported by recipients – 749,597 as of June 30, 2010.

“Job calculations are based on the number of hours worked in a quarter and funded under the Recovery Act.”

Evidently, the $787 billion has not been entirely invested in the economy to realize the immediate goals – jobs, housing and stock market appreciation to generate consumer spending and ultimately the desirable GDP growth.

Stimulus fund investment verification:

Tax Benefits:
Allocation – $288 billion
Investment – $223B /77%
Remaining Fund – $ 65B / 23%

Education, Jobless Benefits etc.:
Allocation – $224 billion
Investment – $143B / 64%
Remaining Fund – $ 81B / 36%

Contracts, Grants & Loans:
Allocation – $275 billion
Investment – $139B /51%
Remaining Fund – $136B /51%

President Barack Obama, Vice President Joe Biden and the Congressional Democrats have passed the crucial legislations to stimulate the different economic sectors.

Housing Market – Foreclosure moratorium to contain the bleeding and refinancing at affordable payments has saved homeowners from losing their homes. The documentation and eligibility cited as the reasons for the programs’ average success.

Addressing these issues would enormously benefit many homeowners and revive the housing market.

Also, the $8,000 credit to first home buyers enabled the market to rein in on falling home prices nationwide.

Therefore based on the results, extending the moratorium and first homebuyer credits, refinancing options by reviewing the eligibility criteria to include more struggling homeowners could be helpful to the housing sector.

Tax benefits: President Barack Obama and Congressional Democrats have been extremely diligent in this respect.

Tax breaks to 99% represented by average Americans, small businesses, corporations creating or saving employment, payroll taxes, tax exemption to seniors with moderate income $50,000 or less, consumer rebates and credits on home and automobile transactions – proof is in the data for 77% of the allocated stimulus fund has been invested.

The recent $26 billion bill for unemployment benefits extension and the federal aid to cash-strapped states to prevent job losses as well as essential programs termination directly influence consumer spending.

Investments in infrastructure projects such as highways and roads, the electric power grid, dams, bridges, levees, water mains and sewer systems, airport, public transportation system expansion by building new high-speed passenger rail systems were in the job creation proposal.

Although, the target is – 900,000 – 2.3 million jobs, it’s distributed across the economic spectrum ranging from green jobs, infrastructure, manufacturing and service sector to small businesses.

A bulk of it to be absorbed by the private sector contrary to the false propaganda on the alleged government take-over of the free market.

President Barack Obama’s timely intervention in the auto industry attracted criticism from the opposition.

Nonetheless, today the state of Michigan that was worst hit in the economic recession is experiencing job growth in the auto industry due to the Obama administration rescue plan.

Stimulus package has been directed towards saving multitude jobs for the beleaguered local school districts that threatened teachers’ salaries with layoffs and cutbacks,

Federal grants to make education affordable for students – Pell Grants for college education and ‘race to the top’ federal funds for schools across the nation.

Adequate medical coverage for military members and their families and $1 billion for the Veteran’s Administration – which suffered severe cutbacks under President Bush and Vice President Dick Cheney that led to the Walter Reed Army Hospital closure at the peak of Iraq and Afghanistan wars.

In an effort to care for the children and seniors – Food programs for low-income Americans, including $150 million to help refill food banks, $100 million in meals programs for seniors, and $100 million for free school lunch programs – all ignored by the former administration.

Deficit management is possible with the troop withdrawals from Iraq and Afghanistan, constrain defense expenditure, health care costs savings and economic surge producing revenues, besides optimizing GDP growth through exports.

Above all, President Barack Obama and the Democrats legislative successes are phenomenal.

Historic reforms in finance and health care in tandem with bipartisan committee on deficit control deserve recognition.

The economy, jobs and the housing market are the President and the Congressional Democrats’ priority and they continue to explore all options in expediting the economic recovery.

If not for their hard work and determination to improve American lives, the pessimistic view on the economy would have prevailed.

Congratulations! To President Barack Obama, Vice President Joe Biden, the Congressional Democrats and the selective Republican members for the milestones reached thus far and the impending legislations to move our great nation forward.

All the more reason to elect the Democrats for a super majority in the House and the Senate, so that President Barack Obama can complete the tasks in every respect, particularly accelerating the job growth, stabilizing the economy and energizing the housing market.

A great future is certain with President Barack Obama, Vice President Joe Biden and the Democrats majority in Congress.

Please visit the DNC, DSCC, DCCC and DGA websites for your generous contributions to elect the new and incumbent democrats in November 2010.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Relief to the Unemployed Citizens through Jobless Benefits

July 20, 2010

By Padmini Arhant

Congratulations! To the millions of Unemployed citizens whose jobless benefits expired in June 2010, now have the means to support them while they are looking for work.

Job search is a stressful experience in a tough economy with millions competing for fewer jobs in the job market.

The extension revival by the Democrats and two Republican Senators Olympia Snowe and Susan Collins is a saving grace for the Americans out of work and the slow economic recovery.

An estimated five million people is expected to be relieved through this measure for they will receive allowances up to 99 weeks averaging $309 a week.

The long fought legislation survived the filibuster threat despite the majority in the opposition along with a lone Democrat, Ben Nelson from Nebraska voting for it.

It appears that the newly sworn in West Virginia Democrat Senator Carte Goodwin’s vote was crucial to move forward for the final Senate approval.

The contentious issue was the $34 billion benefit extension cost being added to the $13 trillion national debt instead of being provided for with cuts in the $3.7 trillion federal budget.

Although, the national debt is a legitimate concern with a valid proposal for funding the legislation, the Republican Senators could have identified the reallocation from the $3.7 trillion federal budget if they were seriously committed in helping their unemployed constituents and the people across the nation.

However, it’s never too late to review the federal budget to eliminate wasteful spending and prioritize economic activities such as this legislation over less important or extravagant budget expenditures.

As stated earlier, job creation and sustenance is an immediate requirement and the unemployment benefit is a catalyst to stimulate consumer spending that would promote the retail industry and the small business sector, the two most significant bases contributing to the ripple effect on the manufacturing, wholesale and the service industry in the economic recession.

Expediting job growth in the retail industry and small businesses is vital for long-term economic progress.

The argument about the out-of-control spending is more appropriate in the alarming defense budget with no auditing or accountability factor. Moreover, the extraordinary investment has not delivered the desirable results thus far.

Ironically, the ‘deficit’ is not an issue in the bipartisan legislation to increase defense funding for the wars in Afghanistan, Iraq, Pakistan and Yemen including the U.S. military bases around the world.

Whereas in the economic aspect the mere existence has been challenging for many and with the opposition blocking funding to the struggling states, the current federal aid is a lifesaver besides being an economic stimulus.

Even if the economic prospect is downsized, any improvement in people’s daily life enables them to endure hardships without losing hope.

According to the latest reports, the unemployment rate in many states is on the decline.

Any attempts to jumpstart the economy would restore consumer as well as investor confidence.

Jobs, housing market and economy have a major impact on the electorate anytime more so in the election year.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

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