AMERICAN PRESIDENT BARACK OBAMA

To: The Right Honorable American President Barack Obama

From: Athinarayanan Sanjeevraja

RE: US Jobs Act

Suggestion: Improving Consumer Demand

Good Morning President. We had a power outage in India. I couldn’t watch your’s US Jobs Act speech live. I watched it later at night once the power came back on but halfway through the speech. Obviously, I had pay more attention to the structure of your speech. I found it underwhelming. You want to spend now $447 billion to keep the job situation from becoming worse. Then, this $447 billion should be cut from other programs later. Here I would like to suggest when you cut the other programs spending which should not cost the lost of jobs for others. The payroll tax cuts amounts to $1500 a year savings for someone who makes $50K a year. In my opinion, combination of tax credits that won’t accomplish much.

In my opinion, the lack of consumer demand is the core issue in US. That’s why companies not hiring new workers. The US consumer demand is now struggling due to lower borrowing limits on credit cards and easy credit has been replaced by tighter spending. As a result consumer spending is declining at an accelerating pace in US. The fall in consumer spending is hurting the US and global economy. US policy makers must seek measures to boost broad based growth. This will mean crafting the right mix of policies to generate both job growth and increase consumer demand.

Let me conclude it, your US job act plan adding more money to the system creates a false demand because once money dries up, the demand will fall and there will be no continued growth. How will that create sustain jobs? If you can not understand this you are destined to become a third world nation. I kept on insisting you since January 2010; let’s stop rewarding the companies who ship jobs overseas. Impose heavy tax for the companies who ship jobs overseas, flat sales tax for everyone, increase tax on all imported goods and no tax on all domestic and exported goods until you bring back US economy on track. I believe this policy should generate both job growth and productivity gains. If you fail to execute this policy, the restraints on consumer spending could cripple any recovery. If you succeed to execute this policy, the result would be a healthier US and global economy.

Thank you very much for your kind attention.

Sincerely,

Athinarayanan Sanjeevraja

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