StiMuluS PlaN

Wh@t A fre@ky StiMuluS Pl@n?

The global economy is in tremendous pressure of economic downfall, which is badly affected by the credit crisis in the States. Recession is everywhere. Most developed countries are in considerable danger of high unemployment rate and other social implications. Multinational companies are retracting their outputs and inputs in terms of production throughout the world. What can be done to recover the global over- speculation economy? Governments, from different parts of the world, are implementing stimulus plans to sustain the multiple effects of global recession. They are trying to create jobs for the “unemployed work force. Hoping that job creations can create multiple effects in the local economy, governments are doing their best in injecting lots of money in terms of building infrastructures and giving out social benefits to the unfortunate.

The huge amount of money injection to the economy is a way to smoothen out the pain of economic crisis, but not necessarily fixing the economic system. When the government mentions about stimulus plan, they are talking about injecting money to the economy, money that belongs to the society. However, consumers and private companies have some sort of bad speculation over the economy. In other words, the previous market economy was over speculated and now it has to be retracted to a certain state of stable economic equilibrium. What we see here is that the government is trying to offset the economic breakdown but how far will they manage to do so. Coming back to my question, does stimulus plan help? It really depends how one would look at it. The economic crisis is not about injecting stimulus plans when there are still multiple holes of broken systems. It’s no point of filling a tank with water when the tank has leakages. These leakages can be inefficient financial system, corruption, loopholes, uncertainties of investment and misjudgment.

I believe that the new stimulus plan not only should focus on money injection but also a new working system that will ultimately bring us to a higher standard of stable economic equilibrium. For now, governments are spending our money and yet we are retracting. This is something I would call the “see-saw” economy. The economy needs trust and efficient financial systems from consumers and private companies. If the economy continues to dampen, maybe it’s true that the economy is over speculated and we are still far away of reaching a higher standard of global economic equilibrium. As far as we concerned, the American financial systems are in total mess. The global economic system needs to be changed. Policymakers! Good Luck!