The Recession Was Avoidable

Basically what has happened to our economy, the means of exchange has decreased significantly.

The Committee For Economic Reform and a Better Economic Future has developed an Alternative Economic Stimulus plan to restart our economy. It does not require the Federal government to create a huge deficit, to return consumer's deposable income.

CSUB Professor of Economics Mark Evans was quoted as saying, we are going to have to live with large deficits for a long time, and there is no other way. We disagree with that statement. The Committee believes that there is another way. President Obama is relying on Keynesian Economics. John Maynard Keynes policies put governments into massive debt, to stimulate the economy and return people's disposable income. Over time more government programs are created, increasing the size of government, as our economy cycles through periodic periods of recession and inflation.

Consumption and home creation represents 75% of the economic activity in our economy. The economy will not fully recover until the consumer's financial condition and confidence improves. Investor confidence, in making long-term investments, needs to improve also. This will happen as the economy improves and when we enact the Zero Inflation Taxation Policy.

When the Federal Reserve lowered the Fed rate and the banks and other financial institutions could not follow the Fed' lead, of lowering the cost of the means of exchange, the collapse of employment and the stock market occurred. If lower interest rates had been available, for credit worthy borrowers, the money supply would have quickly expanded, creating enough of the means of exchange for our economy to continue to work.

The recession would not have gotten out of control, causing the massive layoffs, decreasing people's disposable income, there-by causing the economy to continue its downward spiral. Consumer and investor confidence was thus lost.

The enterprise economic system cannot operate efficiently, without the correct amount of the means of exchange (money) being in balance with available supply.

They are asking you for your endorsement and support of the Alternative Economic Stimulus Plan. They are asking you to please review it at their web site. They also want you to read the other economic policy papers first, so you will obtain a complete picture of why we are repeating the mistakes of the Great Depression. Without the changes we need to improve our economy, we will continue to repeat the mistakes of the past.

They said that we could make this happen. We have the opportunity to leave our posterity a more secure and stable future. We are a nation of free people. We are responsible for the laws that are enacted and for the policies that guide our economy. We can make a difference. Do it for your grand children and great grand children. End the recession now, without a huge federal government deficit and another cycle of inflation.

Committee For Economic Reform and a Better Economic Future web site is http://www.economysflaw.wordpress.com/ The Committee is made up of noted economist, retired Economic Analyst, Businessman, Financier, Investor, Author, and former candidate for the California Congress.

Can Small Businesses Survive This Recession?

Tougher times are expected for small and medium sized business. Business failures are expected to rise by a staggering 50% which means that failed businesses could peak around 32,400 in 2010; this would be the highest level recorded since 1992. The Federation of small businesses said that they had recorded a dramatic increase of 214% in the amount of calls to their legal advice line on redundancies from concerned small businesses in the fourth quarter of last year.

Their members are concerned about jobs and how to hold on to jobs; small businesses are usually the last businesses to make employees redundant. The calls are asking how to make employees redundant, how do I do it, what action should I take, this is extremely worrying when it is thought that 32,400 business may go bust. On average each small business employees approximately 5 members of staff; this means that 150,000 people could lose their jobs from small businesses this year.

The federation of small businesses is the voice of small and medium-sized businesses in the UK; they have over 215,000 members, who employ more than 1.3 million people with a combined turnover of £10billion. The federation of small businesses are proposing a five point plan. They believe that small business can help to get us out of this recession if the government were to give small businesses more contracts, the government improves employment paperwork, government improves access to traineeships or apprenticeships and improves the position of the banks giving money to small businesses. This will rely on the bank mangers releasing and relaxing the money supply to small businesses and not having a knee jerk reaction to this recession. As quoted by Stephen Alambritis.

This government under Gordon Brown and Alistair Darling need to realise that small businesses are the back bone of the economy and that they need to ensure that this recession is as short as possible. To do this they need to spend copious amounts of money to implement a massive job creation programme to keep unemployment down and taxation revenues up. Then hopefully we may ride out this recession!

It's not just a case of the government supporting the Banks and the Car industry; we need more far reaching initiatives for employment across the economy. The recent incentive released by the government was to assist employers recruiting people who had been unemployed for six months or more. This initiative is flawed as the government will provide £2,500 to employers for training any new recruits as long as the new employee has been unemployed for more than six months. So now employers may be tempted to only recruit people who have been unemployed for six months or more for the additional money that is available.

Gordon Brown and Alistair Darling should look across the pond to Barack Obama's newest policy to create 3 million new jobs in America. This initiative is expected to cost some $850 billion to implement along with other help offered to their car industry and the banking sector.

Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Expert advice and comments. Mark has extensive experience in providing Debt Management and Quick Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice.