Economic Regenesis: Restabilization and Recreation of the Free Market

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Economic Regenesis Restabilization and
Recreation of the Free Market
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The Current Economic State

• Increased Unemployment
• 533,000 jobs lost in November ALONE
• Highest one-month loss since 1974
  (http//www.sfgate.com/cgi-bin/article.cgi?f/c/a/
  2008/12/06/MN0I14IPES.DTL)
• 6.7 Unemployment Rate (Bureau of Labor
  Statistics)
• Bear Market
• Rapid decline in the stock market
• Recession

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Dow Jones Industrial Average (Past 6 months)
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Dow Jones Industrial Average (Past 3 months)
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Unemployment Rate
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GM Stock
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Current Economic Plan

• 700 Billion financial rescue plan
• Failed 15 billion auto industry rescue plan

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Goals for the Economic Future

• Reduced unemployment
• Bull Market
• Evidence that the rescue plan is working

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Plan to Achieve Goals

• Reducing Unemployment
• Continue the financial rescue plan
• Promote a worker education program
• Creating a Bull Market
• Continue the financial rescue plan
• Create trust in the market
• Evidence that the rescue plan is Working
• Regulation
• Temporary Government Involvement

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The Revised Financial Rescue Plan

• Stimulus Package
• Monetary aid for families with an income of less
  than 150,000/year, in progressively increasing
  amounts
• This is delicate and will probably require more
  research not enough money no effect, but too
  much money rapid inflation
• Regulation
• Corporations receiving aid from the U.S.
  Government must provide the following
  information
• Where the money is, where the money is going, and
  why it is going there

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Temporary Government Involvement

• Deregulation has led to the current economic
  crisis, so more regulation would seem to be the
  obvious fix
• Too much regulation will stifle the free market
• Over time, there will not be a need for as much
  government involvement
• Plan to reduce involvement over time recreate
  the free-market
• Some regulations may still be necessary (e.g. Sub
  prime mortgages)