Managing To Succeed

The United Nation's Millennium Development Goals aim to cut world hunger in half by 2015 and eliminating it completely by 2025. An estimated $19 billion would eliminate malnutrition and starvation around the world. Our current defense budget is $522 billion, in comparison.

The Borgen Project (borgenproject.org) provides lots of information about this issue.

Not being very versed with economics and how things work financially, I cannot conclude one way or the other whether the economic recovery package would be effective to the scale suggested. My feeling is that doing nothing about this probably will impact the middle/lower income people more.
But as an individual who has lived though the last 8 years, I am pretty cynical with the ideas being floated by the republicans. My theory is that why didn't they suggest these ideas and put them into practice the past 8 years. Where was all these outrage and concern then? Why have they all of a sudden become purveyors of good economic judgement. I Ihave my suspicions about their motives, so I'm comfortable in supporting what the democracts are proposing. but the debate should go on to get the best possible recovery plan.

The other day one of my Chinese friend told that there is very little chance of the western economy ever regaining the lost position. China will become the largest economy soon. They have huge population, infrastucture, industries and work force. People in the asian countries save toady to spend tomorrow as against in the west spend today save tomorrow.May be he is correct.

Your comments on the banks and business loans points out one rising problem with bank bailouts. Businesses and consumers are cutting back on credit. This is bound to be a long term change, as the businesses that survive will have that conservative approach built into the company philosophy, and so will the consumers. We can easliy end up with more supply of credit than demand. The potential for the need to let one former 'too big to fail' bank fail is getting greater as the recession deepens. If one bank doesn't fail then either the US debt or the banking system will be weakened, causing more damage than the failure. If so any bailout funds will be wasted. And with the current $1-2 trillion in additional federal funds needed to support the banks that can be a huge amount of taxpayer money.

Take a look at the overall article, and apply it to the banking system. Is there enough business left in the credit markets to support all the major banks? If not then we may need to cut out at least one major banking player, and that means the government WILL have to pick who wins and who loses. Not nice, but may be necessary. Has anyone researched this? I haven't read any articles on the yet.

Maybe this is the best article I have read in Newsweek, or any magazine, about the real nuts and bolts of having to manage in this environment.
It shows exactly what the problem is. Uncertainty. Risk. Wall Street and bank failures have crippled America's ability to offset and thereby reduce risk. His company has the money, the orders, the systems, but his bank is balking at doing what a bank is supposed to do. HIs customers are having almost the identical problem.
When Bill Gates says that the foundation of the economy is sound, this is exactly what he is talking about. Every day, this man's company is producing more product for more customers. You want to just move on and keep growing. You SHOULD be able to... but if you cannot invest because the bank makes it difficult, you conserve cash by cutting the fat. And then you get scared and start cutting the muscle. Asset prices continue to fall, and then you feel more fear. Outsource jobs... lay off workers... Eventually you have a mountain of cash, and great opportunities, ... but have to assume all of the risk.

Here is what no one has really identified as another disadvantage of the American system: Constant renegotiation and abrogation. I cannot imagine a bank calling up and wanting to renegotiate my credit line. Suppliers and customers not sticking by their word and contract? Sheesh. Talk about playing fast and loose, people. Sounds like kindergarten to me. What a mess.

I think a perfect example of the complete disconnect between Congress, Obama and small businesses is that Obama just got done meeting with technology company CEO's who are giddy over the corporate welfare provisions in this bill. Obama hasn't bothered to meet with anyone who is really running small businesses. If you think trickle-down didnt work before, it really won't work under this plan. It is a huge expansion of government jobs and corporate nannyism. Good luck America.

Theres a disconnect here- I just listened to "Democracy Now" on MPR- they were disclosing that small businesses are getting assistance with the bill! If they indeed are not this is just wrong as big business for the past eight years has garnered record tax breaks and record profits! Rememebr I believe they call it trickle-down / supply-side economics. You know Reagan, Bush I and Bush II- which were coincidentally bad economies for the middle-class yet record winfalls for the weallthy plutocrats! How soon we forget!

If $60M (or even $18M) counts as a small business, then small business needs to be redefined. $60M doesn't represent the many small businesses that are struggling to pay bills and support families.