In Recovery Race, US Looks to Outstrip EuropePosted: June 12, 2009
Today’s stories paint an interesting picture. 10 major banks are allowed to pay back their TARP money to the federal government, which should off-set atleast some of the dept that has been accumulated. The White House promisses to expediate starting new projects that should put 600k people to work. This is money that has been allocated already in the beginning of the year, but not used yet. The effects are yet to be seen.
It is very clear that USA will come out of this recession faster than Europe. As my brother wrote in one of his blogs, Europe will end up paying same, but de to indicision and half measures their rebound will be in late 2010. With a weak (and weakening) dollar now is a perfect time for European technology companies to expand into the US market and get on the next growth wave that will start in the second half of the year.
Some articles state that the banks are still underfunded and that the unemployment rate has exceeded worst case estimates. Well true… the administration did fumble on getting the massive injction into the economy in a timely fashion to counter the loss of jobs. It’s being done now, but why not months ago. The reasonsare probably on the agency and state level and mostly due to the fact that the plan has been poory written.
The GOP is proposing an alternative energy bill with a call for a 100 new nuclear reactors. I’ve studied nuclear engineering in college and I a all for this plan. It would be the equivalent to the Apollo program. A massive project with a clear mission and a huge employment effect. It would drasticly change US energy policy for the future and pave a way for a new auto industry based on electric cars. We need to explore green resource, like wind, solar and geo thermal. The fact of it is that wind power just cannot compete with nuclear. Solar should be used in a building by building level. Some states should mandate that all water is heated by solar power.
My greatest concern about usin money to jump start the economy is that is used on small projects that have no long lasting impact and no clear return for generations to come. Keeping police and teacher jobs is great. Fixing an intersection will improve traffic, commerce, etc. These are all great things that will have a definate ROI, but they are not things that we can easily point to in ten years time and say "well that is what we got". The government will be trillions in dept… we will have to layoff the teachers we kept and the intersection will need new paving.