Posted by Ryan Johnson
With its weakened economy and large amount of national debt, America is looking for ways to pull itself out of this trench that it's dug for itself over the past decade or so. Numbers keep falling, and companies keep reporting "layoffs" and other indications of failing businesses. President Barack Obama offers a solution to initiate a $825 billion stimulus to fire up the economy again. His fear is that the economy will sink low enough to drop family household incomes by $12,000 a year, summing a $1 trillion deficit if the economy follows its current trends . By feeding the economy that massive amount of money, he hopes to improve the renewable energy industry to reduce energy expenses in the long run. However, Senator McCain and the republican party suggest that this plan will not work as it is currently planned. Instead, the republicans are opting to lower taxes for businesses, payroll, and so forth, permanently.
Iceland, feeling the effects of the worldwide recession, had failed to keep its currency alive. Too many banks were failing, and according to commerce minister Bjorgvin Sigurdsson who had resigned yesterday partly to help restore trust in the nation's leadership abilities, the government had some responsibility for the collapse. Now Iceland requires the International Monetary Fund (IMF) to revive its economy by initiating a $827 million stimulus plan of its own, a similar plan to that of Obama's.
The World Economic Forum is an example of an organization taking matters into its own hands to some extent. Composed of economic superpowers, this group of 2,500 meets annually to coordinate their efforts towards global financial well being and success. Their meeting this year will almost undoubtedly concern the global economy, but in years past they have discussed lowering trade barriers, as well as solutions to deadly human diseases.
Sources:
http://www.moneymorning.com/2009/01/26/obama-stimulus-plan-3/
http://www.cnn.com/2009/WORLD/europe/01/26/iceland.government/
http://www.reuters.com/article/worldEconomicNews/idUSLQ6683820090126
http://www.msnbc.msn.com/id/28825558/
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