Skip to main content

REBUILDING AMERICAN ECONOMY 2013

To: The Right Honourable American President Mr. Barack Obama   

From: Athinarayanan Sanjeevraja

Date: August 3, 2013

RE: Your Economic Vision

Suggestion:

Good Morning Mr. President. Let me start by paying my respects to you and through you to.

Mr. President, India’s Business Line reported that “Obama to outline his vision for rebuilding US economy.” American economy may not grow as fast because US consumer spending crowds out investment spending. But I see US economic outlook improve gradually during the second half of 2013. According to me, investment spending is much more likely to be growth enhancing. If I am not mistaken, US inflation rate was recorded at 1.8 percent in June 2013. Inflation is not at very high level in US. If inflation is very high, it adversely affects fixed business investment. I identified fiscal policy for instance, tax cut that stimulates investment spending. Corporate tax rate should be lowered, an investment tax credit should be given to American companies who’s establishing or expanding their business in US. Such changes in tax policy can enhance investment spending because firm’s investment spending decisions are made in the light of after tax cost and returns.

Mr. President, it is vital to have proper balance in the American economy between consumption and investment but consumption spending should not be promoted at the expense of investment. But investment spending plays a vital role in stimulating slumping economy. So I request you to increase in the investment tax credit. As a result, a certain percent of the purchase price of new goods could be taken as a credit off of the firm’s tax. In addition, Federal Reserve should act to lower interest rate which would encourage investment spending. Federal Reserve already keeps the interest rates low. The low interest rates of the global financial crisis 2008 certainly contributed to the American economy recovers from the crisis.   

Let me now conclude Mr. President, as has been pointed out, business investment spending is very important now to the fast economic growth. Declines in business investment spending often contributed to the economic recessions or downward economic growth. According to my analysis, fiscal policy action, for instance, increase in the investment tax credit for companies to stimulate investment is deemed desirable.   

Thank you for your attention.

Sincere Regards,
Athinarayanan Sanjeevraja.   
Athinarayanan Advisory Authority

Athinarayanan Twitter   

Comments

Popular posts from this blog

HONG KONG EXTRADITION BILL 2019

To:     The Right Honourable Chief Executive of the Hong Kong Special Administrative Region of the People’s Republic of China Ms. Carrie Lam From: Athinarayanan Sanjeevraja Date: August 29, 2019 RE:      HONG KONG EXTRADITION BILL 2019 Suggestion: Hon. Chief Executive of the Hong Kong let me start by paying my respects to you and through you to. “One Country Two Systems” structure compels Hong Kong to operate currently under different legal system than that of Mainland China. You published the extradition bill on March 29, 2019 and first reading on April 3, 2019 which will destroy Hong Kong legal independence because extradition bill is another attempt for China to take away the Hong Kong independent legal system that China has agreed for Hong Kong to keep until 2047. Thus, the people of Hong Kong marched their protest against the bill on June 9, 2019. Hong Kong protests are still continuing. The silence of your government lead...

THANK YOU NOTE TO FORMER CHIEF JUSTICE OF INDIA DR A S ANAND

To: The Hon’ble   Dr. Justice A.S. Anand, Former Chief Justice of   India & Empowered Committee Chairman From: Athinarayanan Sanjeevraja Date: Wednesday, July 25, 2012 RE: Thank you and the members of Empowered Committee and the five judge constitution Bench of Supreme Court Judges.   My lord, please accept my heartfelt thank you and the members of Empowered Committee and the five judge constitution bench of Supreme Court Judges on behalf of myself and all of the people in Tamilnadu for saving lakhs of farmers in the southern districts of Tamilnadu and the fine report you made. I wish you continued success in what you are doing my lord. The completion of the remaining judgement on Mullaperiyar will require Dharma. Every judgement should apply Dharma. Dharma should not be destroyed in any of our judgement. My lord, As you knew that “ according to lease agreement indenture granted full right, power and liberty to the Tamilnadu to construct make...

THE UK SECRETARY STATE FOR BUSINESS SIR VINCE CABLE

To        The Right Honorable Secretary of State for Business Vince Cable MP.        From:   Athinarayanan Sanjeevraja Date:   December 19, 2011 RE:       UK Manufacturing   Suggestion: UK Corporate Tax Reform Good Morning Minister. I read Financial Times, London, it reported that you announced £ 125 million set up to improve the global competitiveness of UK advanced manufacturing supply chains. Today companies compete on the competitiveness of their overall supply chains. The loss of major UK plants could jeopardize critical mass in the UK supply chain. It would be a good place to start but as for UK manufacturing and supply chains that are built on complex and often incoherent. From my perspective UK manufacturing policy is still ineffective. In an effort to revive the manufacturing sector, first, focus on raising the productivity because a successful and dynamic economy...