If I Were obama's Economic Advisor

Part Two:

As the economic crisis gets worse regulation is something we need to consider along with a better stimulus package. Obama even depicted the current economic crisis is a consequences of deregulation, and he is not the only one. Michigan's Phil Hart, held hearings on the concentration of economic power in the United States, and proposed expanded government regulation of everything from the oil and auto industries to sports. In my opinion this is exactly what we need to do.

Ever since the 1960's when the rush for deregulation began problems have been starting ever since. Take the 1978 Airline Deregulation Act for example, it destroyed the CAB and removed most regulation of commercial airlines. Deregulation of the telecommunications industry reduced the number of major phone service providers. There is many more incidents that we should take into consideration when deciding how to solve our economic crisis.

Aside the point of regulation, the reason why our current bailout is not stimulating the economy is because how the money is being spent. A spokesman for JPMorgan Chase said, "We've lent some of it. We've not lent some of it. We've not given any accounting of, 'Here's how we're doing it." While other banks said they simply didn't know where the money was going according to Matt Apuzzo. The next stimuli's plan must be spent more wisely and we need to know where the money is going. Instead of giving the money to banks and other companies I believe we need to use the stimulus plan to fix another problem all together, unemployment.

According to the chart above unemployment has been a rising issue. With the stimulus package we should create jobs that will decrease the unemployment rate immensely. This will also increase consumerism which will help stabalize the economy as well. When unemployment rates it has been shown to produce spending cutbacks and that alone can hurt the economy according to John Kemp.

All this may not be able to get down quickly or may not help the economy very quickly but over time it would. This plan may also prevent future economic proublems from being as severe because there would be less unemployment.


Citations:

• Ridgeway, James, and unenforcement.. "It's the Deregulation, Stupid." MotherJones.com Home - Daily News, Political Commentary and Analysis. 11 Feb. 2009

• Kemp, John. "The Great Debate » Debate Archive » Rising unemployment gravest threat to U.S. and UK The Great Debate ." Reuters US Blogs Blogs . 11 Feb. 2009

• " Chart: Unemployment rate in U.S. since January 2008." Reliable Plant Magazine and Lean Manufacturing Journal. 12 Feb. 2009 .

• Apuzzo, Matt. " CNSNews.com - Where Did the Bailout Money Go? Banks Can’t, or Won’t, Say." CNSNews.com. 12 Feb. 2009 .