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Economic Regenesis: Restabilization and Recreation of the Free Market.

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Presentation on theme: "Economic Regenesis: Restabilization and Recreation of the Free Market."— Presentation transcript:

1 Economic Regenesis: Restabilization and Recreation of the Free Market

2 The Current Economic State Increased Unemployment Increased Unemployment –533,000 jobs lost in November ALONE Highest one-month loss since 1974 (http://www.sfgate.com/cgi- bin/article.cgi?f=/c/a/2008/12/06/MN0I14IPES.DTL) Highest one-month loss since 1974 (http://www.sfgate.com/cgi- bin/article.cgi?f=/c/a/2008/12/06/MN0I14IPES.DTL)http://www.sfgate.com/cgi- bin/article.cgi?f=/c/a/2008/12/06/MN0I14IPES.DTLhttp://www.sfgate.com/cgi- bin/article.cgi?f=/c/a/2008/12/06/MN0I14IPES.DTL –6.7% Unemployment Rate (Bureau of Labor Statistics) Bear Market Bear Market –Rapid decline in the stock market Recession Recession

3 Dow Jones Industrial Average (Past 6 months)

4 Dow Jones Industrial Average (Past 3 months)

5 Unemployment Rate

6 GM Stock

7 Current Economic Plan $700 Billion financial rescue plan $700 Billion financial rescue plan Failed $15 billion auto industry rescue plan Failed $15 billion auto industry rescue plan

8 Goals for the Economic Future Reduced unemployment Reduced unemployment Bull Market Bull Market Evidence that the rescue plan is working Evidence that the rescue plan is working

9 Plan to Achieve Goals Reducing Unemployment Reducing Unemployment –Continue the financial rescue plan –Promote a worker education program Creating a Bull Market Creating a Bull Market –Continue the financial rescue plan Create trust in the market Create trust in the market Evidence that the rescue plan is Working Evidence that the rescue plan is Working –Regulation Temporary Government Involvement Temporary Government Involvement

10 The Revised Financial Rescue Plan “Stimulus Package” “Stimulus Package” –Monetary aid for families with an income of less than $150,000/year, in progressively increasing amounts This is delicate and will probably require more research: not enough money = no effect, but too much money = rapid inflation This is delicate and will probably require more research: not enough money = no effect, but too much money = rapid inflation Regulation Regulation –Corporations receiving aid from the U.S. Government must provide the following information: Where the money is, where the money is going, and why it is going there Where the money is, where the money is going, and why it is going there

11 Temporary Government Involvement Deregulation has led to the current economic crisis, so more regulation would seem to be the obvious fix Deregulation has led to the current economic crisis, so more regulation would seem to be the obvious fix Too much regulation will stifle the free market Too much regulation will stifle the free market Over time, there will not be a need for as much government involvement Over time, there will not be a need for as much government involvement –Plan to reduce involvement over time – recreate the free-market –Some regulations may still be necessary (e.g. Sub prime mortgages)


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