The “wasteful spending” that some American politicians criticize in the economic recovery proposals before the Senate is actually the transfusion that a dying global economy requires to survive. As niggling obstructionists drain the life’s blood from the American plan, attempting to substitute more tax cuts for the wealthy, the rest of the world waits anxiously.
Experience has proved beyond a reasonable doubt that tax cuts do not necessarily stimulate an economy. For one thing, there is no way of ensuring that the beneficiaries of a tax cut will spend the money they save, or if they do, that they will spend it in the country where they pay their taxes. The most effective – and fastest-acting – restorative is direct government spending.
As I browse the web, I notice that America is not the only country implementing a stimulus package. Many other countries, including Jamaica, are taking steps to revive their slumping economies with government spending programs. But to succeed these efforts must be complemented by a resurgence in the world’s largest economy – America’s. That’s why the world is watching closely as petty politicking drags on in the U.S. Senate.
Jamaican officials, for example, have said they hope some of the jobs created by President Obama’s economic recovery plan will create opportunities for the island’s workforce. The Minister of Labor and Social Security, Pearnel Charles, announced recently that the Jamaican Government is investing in training to prepare its citizens for those anticipated opportunities.
President Obama is looking to gednerate millions of jobs, Charles said, “and we expect that will create some jobs that we will get.” He added that the Government would be “certifying, training and getting ready for an assault on some of these jobs.”
He said the Labor Ministry is negotiating with U,S. officials to reinstate that country’s annual quota of 66,000 overseas workers. This would significantly help unemployed Jamaicans.
Obviously, Jamaica is not high on the U.S. Senate’s list of concerns. Nor is even the United Kingdom, Canada, France, Germany or Japan… But in today’s global economy, other nations have a stake in the debate over President Obama’s stimulus plan. It’s time for American politicians to accept their responsibility not only to the millions depending on their decisions at home but also to the billions worldwide who will adversely affected if they drop the ball.
Photos above show hungry children waiting for food (top) and protesters during France’s recent major strike triggered by the global financial crisis (bottom).