Wednesday, March 18, 2009

Did America Catch Cold?

Much long ago, Nobel Laureate, Joseph E Stiglitz predicted that “The U.S. economy is already in recession -- and may echo the 1930s”.

The fear of recession is worse than the real recession and the same has arrived in America. Besides, it has spread to the entire world thus creating apprehensions. It seems whenever America catches cold the entire world sneezes. So is the case of recession. With the America being the global leader and major player, the rest of the world is worried about the impact of recession.


Failure of financial institutions in America has further worsened the economic crisis throwing America into deep recession. With the collapse of Leyman Brothers and a few financial institutions that are in the shaky ground, it looks that much worse is yet to come. The reasons for the present crisis are many. Lack of transparency at the corporate world, greed of few top people, irresponsibility and failure of leadership at the higher level resulted into the current meltdown.

The former President Bush failed to check the fall of the American economy and the blame lies with him. Now the ball has fallen into the court of Barack Obama and the world is waiting and watching him closely how he along with his team would manage the situation.


Second World War brought lot of destruction to mankind. It also ruined the world economy. But it resulted into several technological innovations that brought comforts to mankind. Similarly, the current meltdown will bring fruits to mankind in several ways although there will be pain for some time. But the pain is worth bearing to enjoy the fruits.


The word ‘recession’ is on everyone’s lips. What are we doing? Let us stop talking and start doing something to tackle recession. Society as a whole has to hold the hands of the affected people arising out of recession. Combat the current crisis with mettle. Let us put our heads together to come out. Let us look at ideas rather than issues and events. It is not the time to blame any individuals except to churn out ideas from coming out of the current crisis.

We cannot expect American economy to have robust growth in the prevailing scenario. However, we can expect the same in the near future. There is a need for business acumen at top leadership to tide over the present economic crisis. Need for innovation, training for leadership development at the middle and senior level is necessary. Innovation is the key to survival in this world. Whenever faced with problems, it is desirable to think out of the box for solving the problems.

There has to be fine balance between savings and spending. Savings is essential to meet a rainy day. Spending is essential to ensure demand for production. Unless the demand is created, the goods or services can not be produced. Once spending starts then the demand rises and production starts and employment opportunities will grow and money circulation takes place.

America should not rest of its past laurels just because it had several inventions to her credit. The fact is that past achievements cannot be taken granted for future leadership. America should reinvent with the changing global scenario and should play the role of a ceremonial head or a father figure to find solution to recession. If recession is not handled properly then there is a threat to American leadership. For rest of the countries in the world, strong American economy means strong global economy.

It is obvious that the American economy is bottoming out and it would bounce back. It is a matter of time. We are witnessing the greatest economic challenge. We would come out it successfully as it is only a temporary setback with several lessons to policy makers and leaders.


Tough times either bring you to your knees or raise you to new heights. It all depends on your mindset and the resilience. When viewed from positive perspective it will take you to next higher orbit if you can spot and utilize the opportunities. Tough times don’t indicate an end but a bend in your life. Tough times may tumble you but finally humble you at the core.

One thing is certain and sure in the prevailing world that if the global economy has to survive the American economy has to thrive. It is time for America to take tough decisions. If required, Americans should struggle and sacrifice their comforts and luxuries to make the America fundamentally strong.

The End

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