Previously, we heard about the very bad news regarding the struggling economy of the US and the constantly increasing budget deficit. Because of these events, the US lifestyle was greatly affected and more people especially the middle-class have either lost their jobs or are having a hard time finding one. Just recently, Treasury Secretary Timothy Geithner mentioned that the economy is now capable of avoiding a newer recession. But he emphasized that the tax cuts implemented on wealthy business will expire in order to show commitment with regards to reducing the budget deficit.
The Republicans has continuously proposed to extend the tax cuts while Democrats, on the other hand, are equally divided on this matter. Geithner also mentioned that only about 2 – 3% of Americans, mostly those that are earning $250,000 a year and above, are going to be affected by this new policy. They also emphasized that this new policy is the right thing to do as it would show the world how sincere and how determined is the US government in eliminating their budget deficit. It also would show that progress is slowly starting and that the country is going back to its old and productive form again.
He also projected that the recovery may take a long while before it achieves significant milestones. But he underscores that slowly but surely the country will stand up and get back on track again. The economy will strengthen for the next couple of years. Financial institutions will gain back the confidence to lend money to those who need it. The significant change that is anticipated by everyone is the improvement in the jobs sector. Since the recession, many Americans have lost their jobs. All are still hoping that more jobs will be generated so people will earn a more decent income to improve their lifestyle.
The Obama Administration is keen in pursuing measures that would create a better investor-friendly environment. The primary focus is to help and assist small business because they believe that they are the primary engine for job creation. The reform on financial rules that was signed by Pres. Obama last week will also help protect consumers and bring back the confidence of financial institutions such as banks.
The points mentioned above are a welcome sign that progress and recovery is well on its way. Let us hope that what is written on paper will also become reality. I would love to see the Obama Administration implement laws that would help in securing the economy in order to prevent future recessions.
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