The Condition of the Success of Obama’s Plan

The U.S. President Barack Obama realized undoubtedly a fast and effective success last week when he obtained congressional approval for his stimulus plan, which costs $789 billion, in order to revive the American economy. This plan reduces the unemployment burden of 3.5 million Americans who have already lost their jobs due to the recession. Furthermore, this plan finances several infrastructure projects in the U.S. such as reforming the roads’ grids, rebuilding and equipping the schools, as well as financing research on energy substitutes in order to decrease the reliance on the Middle East’s gas and to determine the effects of climatic variables.

President Obama expects that these projects will create four million new job opportunities to confront the possibilities of increasing unemployment percentages, which now approach 8%. Obama’s administration expects that this percentage will reach two decimal numbers if the situation is not urgently rectified because the crisis is so deep and huge that it requires time in order to penetrate all of its elements and to exit it.

As the president warned, it might be difficult to foresee quick and fast results in cases that are related to developing the education, finding energy substitutes and determining the effects of climatic variables. But, the criterion of the success of Obama’s plan will depend primarily on the extent of the plan’s ability to create the job opportunities the new U.S. president promised.

However, the U.S. president should assimilate an important lesson; the continuous American administration of the universal economy will not depend only on its ability to rectify its mistakes, but it will depend primarily on its ability to rectify the mistakes of the universal financial system. This system moved the American economic crisis to the economies of the Western world, as well as the economies of developing and poor countries due to the different criteria of the present universal system, which misses the equivalence of benefits between developing and developed countries. Meanwhile, the developing countries assume the largest proportion of the disadvantages of this system!

In fact, the universal economic crisis, which reaches its maximum this year, beats violently the economics of developing countries to the extent that it threatens a strong decrease in growth rates, a huge increase in unemployment rates and a rise in persons who live at the poverty line to reach 100 million persons. Furthermore, this extent threatens an increase in the numbers of hungry people around the world to exceed 200 million persons and approach one billion persons due to the expected rise in nourishment prices starting from the second half of this year.

Therefore, it may be difficult to talk about a noticeable improvement in the universal economy, which increases the international mass trade and ensures the rise in the growth rates of universal economics. This can happen if the U.S. president does not take into consideration the extent of the firm correlation between the necessities of reviving rich countries’ economics and developing countries’ economics.

Thus, the economists around the world depend very much on the expected effects of the universal economic conference, which will be held in the U.S. next April through an invitation from President Obama. The rich countries will attend this conference together with many developed and developing countries in order to review the participation in development between the poor and the rich in a world that is well connected and extremely small.