Tuesday, 06 September 2011 20:42

America Huge Debt And Deficit Problem: Is Debt ceiling the solution to moribund economy?

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Sometimes one can wonder what the problem really is with this protracted global economic crisis that seemed to have come to stay here however, at the risk of sounding immodest from less macro economic school of thought application - many may seem to blame the situation on an incumbent leaders anywhere in the world right now ...be it in America , or boiling Greece or downstairs in our backyard South Africa - country that now expriencing its first recession after 43 years . Now back home to United States, is obama at any faults? Nope !!! Please blame it all on GOP that shipped all their resources to Asia- China to frustrate ailing US- Manufacturing industries while China grows exponentially at the mercy of greedy GOP entrepreneurs stationing their new business in China to proof a point...

America Huge Debt And Deficit ProblemThe Republicans continue to stick to their ludicrous plan to fix our problems by slashing spending immediately and raising no additional revenue. Over the long haul, spending does need to be cut, but slashing it suddenly will deliver a hammer blow to an already frail economy. The country will plunge back into recession, unemployment will soar, and--importantly from a budget perspective--government revenues will drop. The latter outcome, which we're seeing in Greece, the UK, and other countries that have tried "austerity" as a solution, will defeat the whole purpose of trying to balance the budget by cutting spending. (Translation: It sounds sensible and prudent, but it won't work.)

But the Democrats' "plan" is no better. The Democrats plan appears to be to ignore the crisis, keep their heads stuffed deep in the sand with respect to Medicare, Social Security, and other spending programs that are bankrupting the country, and jack up taxes only on "the rich." The latter element will have to be part of the solution to our woes, but it won't solve the problem. Spending is going to have to be cut, and taxes are likely going to have to rise for everyone.

But, at last, someone we sent to Washington to solve our problems is actually putting forth a plan that makes some sense.

According to the Washington Post, President Obama is going to meet with leaders of both parties this morning and advocate a new, long-term approach to the budget crisis, one that goes straight up the middle.

Specifically, says the Post, the President's plan calls for:

Cuts in Medicare spending

Social Security reform (presumably raising the eligibility ages)

Increases in revenue (read: higher taxes)

The White House says the new plan will save $4 trillion over the next decade, instead of the $2 trillion in savings estimated from a prior plan. (Take both of these estimates--and any other estimates you hear about any plan from either party--with a huge grain of salt. Such "savings" are usually based on ridiculously optimistic assumptions.)

Most importantly, this plan would be enacted over the course of the next decade.

The most dangerous part of the current game of chicken with respect to the deficit is the emphasis on short-term Band-Aids instead of long-term solutions. Although the US's deficit is massive, one or two years won't make much difference over the long haul. Radically cutting spending or jacking up taxes to go "cold turkey" on the problem, meanwhile, will likely clobber the economy and make the situation even worse.

A more intelligent approach is for both sides to acknowledge the problem and then come up with a long-term middle-of-the-road plan for dealing with it--one that combines both spending cuts and tax increases.

President Obama appears to be (finally) doing that.

Now let's hope everyone else we sent to Washington to fix our problems stops shilling for their party platforms and putting the country's credibility on the line to further their own careers. Let's hope that, instead, they actually try to fix something.

In God We Trust

 

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Akin Awofolaju Ph.D

As a corporate executive with extensive fortune 100 corporate background both in personal and corporate business. Dr Awofolaju is a governance, risk  management and compliance guru, managed many organizations in leadership capacity. His company is one of the leading Leadership Business Development, Strategic Programs in Tri States Area. He is an American Board Certified Financial Forensic Examiner, American Board Certified Executive Leadership Development educator, American Board Certified Strategy Planner and also a Strategic Thinking Expert. An Applied Economist (Regional Development Economics)- PhD

He has been a top ranked Human Capital Engineering Business Resources & Leadership Development for executive educational industries in NY/NJ Regions for three consecutive years and also leadership development expert for the fortune 100 companies where he worked as an award winning leadership professional with over 17 years of management experience, demonstrated analytical skills. Dr. Awofolaju is a member of over twenty professional bodies amongst which are the American Association of Financial Forensic Fraud Examiners, the Nigerian Institute of Management, American Economic Association, and International Research for Income & Wealth, etc Author, a prolific writer and columnist on contemporary issues.

Dr Awofolaju is a motivator and mentor with a collaborative, entrepreneurial management style with expertise in translating the big picture into specific business leadership strategies. Dr Awofolaju was a leading Corporate Executive (New York/New Jersey regions) for Verizon Wireless Telecommunication Company in America, where he worked for over 10 years before he started his own company. Dr Awofolaju managed team of senior-level managers, and for his entire career there he was the top performer in his region, as well as nationally. As a management expert, he has broken many sales and marketing records with several awards and recognitions and also attended Advanced Program at Harvard University Business School & Cornell University   graduated from S.C Johnson Postgraduate Business School in Executive Leadership Development & Strategic Thinking/Planning. 

He has spent a significant amount of time in continuous personnel leadership development of his team as their team leader. Dr Awofolaju also managed over 500 high-performance driven  team that generated over 450 millions of dollars  in mergers & acquisitions when he worked as Regional Account Executive for British Petroleum Company for Tri- States ( PA/NJ/NY) - 1999 -2001. His strengths are his motivational and mentoring skills. A keen listener and creative thinker, Dr Awofolaju has been a consultant for individuals and businesses since 1991. He managed European financial powerhouse as President/CEO - Bayland Investments Company in Eastern Europe (1991- 1999), he discovered executive keen interest in his experience and insight into maximizing peak performance. 

Dr Awofolaju developed the leadership development & training program that unleashes potential of individuals or organization value adding by opening up creativity and recharging passion requisites for consistently perform at their best. Dr Awofolaju's focus resonates with others because it sheds light on why people do not perform to their potential even when they're talented and committed. Dr Awofolaju works with various CEO's, corporate executives be it in Wall Street, business professionals to athletes – professional basketball players. Dr Awofolaju’s wide range of clients illustrates how anyone can benefit from performance coaching. He makes you to better maximizing your potentials, it is everyday for greater results. Dr Akin Awofolaju has been a consultant for individuals and businesses since 1991, when he discovered executives' keen interest in his experience and insight into achieving peak performance.


Chairman : State & Local Government  Nigerians in Diaspora: Nigeria Constitution Review Commitee  
Honoree: Top 50 Nigerians in US/Canada commemorating 50yrs of Nigeria Independence @ United Nations -New York, NY -USA
Founding Chairman : NigeriaCEO Council - New York 2010
Steering Committee Member: Nigeria In Diaspora Constitution Review Committee ( 1999 Consistitution Amendment Committee)
Alumni : Cornell University - Postgraduate  School : S.C Johnson School of Business , Itacha, New York - USA  
Member: Nigeria Global Forum - USA
Member of American Economic Association (AEA) -USA
Member: Association of Certified Fraud Examiners (ACFE)- USA 
Member of International Association for Research in Income and Wealth (IARIW) .
President : Acumen Investment Club of  State of New Jersey
Board Member: Aberdeen Township Planning Board -New Jersey
 

Website: www.Amerihireinc.com