Putting American economy back on rail is the stupendous task for President Obama. His economic advisor Geithner and Summers are big sorts and likely to focus on big canvas. But will that bring a consistent solution to the rising unemployment problem in US; is a big question. Probably it will not; in fact as the old adage goes ‘they can’t see forest despite the trees’ holds good when the big people focus on the problem. But that may not work sometime, if there is no tree; there won’t be any forest in future. So, sometime for addressing bigger issues you need to focus on the smaller ones that create the big.
President Obama is going to meet business tycoons for seek answers to current crisis. They too like his advisors look at the problem from same angel; actually all of them belong to blue collar segment of our society, not knowing how the working American live from paycheck to paycheck. They run their business without ever turning the wheels; after all no new idea they are going to contrive; so this time their solution may not work well.
Here is new proposal for Mr. President, there are certain ways to beat the troubled economy and they have been tested all over the world, albeit in third world. A new economic solution in terms of micro economic lending has done miracle elsewhere. A scheme if adopted by Small Business Administration to lend funds to entrepreneurs; who is capable of engaging few skilled, unskilled men for his trade and the trade which is sustainable like service industries; may bring the boom back again. This will remarkably reduce the number of unemployed; boost demands and so supply.
Funding major corporations and backing them with government contracts will allow only 20% of the funds to create jobs. That being the case the 200 billion T.A.R.P fund will create jobs for 1.5 million people temporarily, so long the projects go on. There after they will join aging the unemployed workforce. Instead if the same fund is canalized through micro lending, it may employ 6 million people permanently.
Now you think which one is better!
© Decey 2009
