Painfully Slow

“PAINFULLY SLOW”

Barak Obama has claimed that the economic recovery in America is ‘painfully slow’.  The rate of unemployment has gone up to double digit.  He has announced number of measures to speed up the recovery and create more jobs.  He wants to withdraw tax benefits to companies that give business to Bangalore rather than to Buffalo. Another action he has proposed is to bring about steep hike in the cost of H1B visa from $2,300 to $ 4,300.  The state of Ohio has gone even further and has planned to ban off shoring.  Many are calling it foul.  And foul it is!

It is a double standard of American administration.  On the one hand Americans have been clamouring for putting an end to protectionism but when there are economic problems in America it tries to introduce protectionism.  Soon after the great economic crisis George Bush made a declaration that these crisis should not result in protectionism.  Probably he was afraid that the rest of the world will introduce protectionist measures. 

For America, it seems, Globalization has only one meaning, namely, the American interests get globalized.  Many have claimed that the mishandling of the Economy by the American Federal Reserve was the cause for the Wall Street meltdown and the entire world was forced to pay the price. 

Surprisingly for the American the Indian economy is doing excellently well and China is leading.  The Americans tend to think that these two countries are doing well at the expense of American unemployment and sluggish growth.. 

But America should take note of a few things:

1.      How many of the American companies are operating in China and in India, not to speak of the rest of the world?  These companies are taking advantage of cheap raw material and labour to earn high profits from these countries.  Apart from earning huge profit for the Americans many a time these companies have resulted into industrial disasters, like Bhopal Gas disaster and Kodaikanal mercury poisoning the hill station.

If we analyse the growth of Indian economy one will realise that the major beneficiary of this growth is America. One has to find out how much of the American interests are served in this growth by virtue of their investments in India. The following figures of growth show it amply clear. “The consumer durable goods production has gone up to 22.1%.” The group of industries listed under ‘machinery and equipment has shown the highest growth of 49% and 24.9% in transport equipment and parts” (Times of India, Sept 11).  The areas of growth that would serve the interests the Indian people would be in power generation and agriculture. These are growing at less than 4% and 0.2% respectively.  America should realise that if they want to prevent professionals from countries like India from coming to America then will they take back the capital that exploits India?  Just because America is the biggest economy the developing countries do not have the courage to challenge America’s unfair trade practices and expose their double standard on globalization and free trade.

2.      America should realise that they have contributed to the miseries of scores of people in the developing countries principally in Vietnam, Iran, Iraq and Afghanistan.  To hunt down the Al-Qaida George Bush brought the entire Afghanistan into war and had done more than what it accused Soviet Union of doing.  There was no presence of Al-Qaida in Iraq during Saddam Hussein’s rule.  In fact Iraq was known for its secular credentials during his regime.  Fortunately the weapons of mass destruction supplied to Iraq by America to fight against Iran had been eliminated by Saddam Hussein and that prevented high cost of American aggression both for the American troops and the people of Iraq.  

All these misdeeds of America have come at a very heavy price for the Americans as well.  The Americans were made to live under fear psychosis of repeat of 9/11 so that they could they would not oppose the madness of the government of America.  If the Americans wanted oil from Iraq then one must say this was the most absurd way of trade.

3.      The third thing American should realise is that it is the biggest supplier of weapons to the world, particularly to the poor countries.  American economy has benefited from the war economy.  It has suffered because of its military power.  If America had avoided war against Afghanistan and Iraq it would have save the misery for all, principally for America.  If America seriously works for disarmament then it will have the best way to solve its problems of economic growth and unemployment.    

Barak Obama wants to take up infrastructure development to boost employment and the economy.  He wants to tax the industrialists to raise money for this.   He does not realise that the kind of chain effect it will have in further pushing the economy into recession.   Does he realize that the unemployment it faces might be different from the employment the project like infrastructure development will generate?  But the politicians have to fool the people with false promises particularly in view of elections.

4.       Will America learn from the experience of its war on Afghanistan and the way it has brought democracy to Iraq.  It has not learnt anything from the war in Vietnam and its politicking in Iran which led Iran into the hands of the Muslim fundamentalists.  American leaders and the people are, by and large, introvert.  If one has to learn one should go and reach out to others.  America must realise that its greatness is nothing if it is not the part of the greatness of the world.  But Americans think that it is a great nation and the greatness of the world is because of America’s greatness.  If the American economic growth is painfully slow it is because the learning process of the American leaders and the people in general is painfully slow.

                                                                                             Alex Tuscano