HOW TO REPAIR A DAMAGED ECONOMY LESSONS FROM OBAMA

Apr 27, 2019
When Barack Obama took office as America's 44th president, he was faced with an acute, three pronged economic challenges.
 
The American financial system was in crisis to  a greater extent than at any time since 1933. 
America's international imbalances  was  on a worsening downward slide, The economy was  in  a deep  recession supercharged by falling consumer purchasing power, declining house values, and cascading business losses. 
 
In addition to the above mentioned, he was faced with four chronic problems viz 
A worsening  thirty years trend of inequality and insecurity Energy crisis and climate change, Increasing cost of health care Decay of America's public spaces and facilities. 
 
All of the above mentioned scenario sounds familiar? That was the situation in  Almighty America  barely up to 8 years ago And this is our story in Nigeria today Now you will agree with me the story has changed for America. 
America is out of recession  thanks to  a brilliant,  hardworking  and tireless  president 
 
How was the feat achieved ? 
 
He blamed the out gone republican government most especially the two George Bush for the Economic mess? 
NO ! 
 
He clamped  down on any discerning voice of opposition and threw them into jail  with spurious, unfounded criminal and fraud charges? 
NO 
 
He restored confidence in the American economy not just with inspiring words /vague promises  or as in the case with our Nigerian president by engaging in  series of" blame it on Jonathan" propaganda, but by demonstrating that help was on the way. The American economy was vigorously restructured,  
necessary stimuli were injected into the economy, the  federal government embarked on  a  more robust housing and mortgage rescue program. 
 
Let's learn from United States of America. 
We can kick out recession, We can jump-start the Nigerian economy But we need to be aware of the cost of borrowing because Unnecessary borrowing may further kill our economy rather than revive it.
 
I advocate for a moderate deficit expenditure based budget. As at January 2015  our GDP stood at $574 billion making Nigeria the largest economy in Africa  and about the 24th largest in the world. 
 
What Nigeria needs therefore is not a large deficit budget but an ambitious tax hike to increase government income and  an aggressive Industrialisation drive followed by massive increase in employment. 
 
This is what is required to stimulate the economy and drive us out of recession.
 
 
Mr Itohoimo Udosen
Public/Political Affairs Analyst
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