A Neglected Priority
By Hilbert Morales
El Observador
Let's go back to the Presidential election 2008 where Barack Obama, candidate, eloquently told the people that he would, as a first priority, address "the people's business." Their concerns, then as now were the lack of jobs and the failure of the American economy to continue to provide opportunity and access to the American Dream. What made America the most powerful nation in the world were its economy and its open access to success if one's work was meritorious.
If one considers the American Consumer Economy as it used to be, there was a time when each of us, regardless of ethnicity, social station, or political persuasion could aspire to being upwardly mobile. We could consider becoming well educated beyond high school; of owning a vehicle and a home. It was possible for any of us to achieve those goals through our own honest labor. Too many of us who had middle class incomes have recently joined the ranks of the poor because our jobs have been outsourced to locations where the labor costs are lower. Too many of us were injured seriously by the greed and avarice of the major financial giants who were not monitored nor regulated. These were the firms that caused the climate of distrust resulting from the excessive valuation of financial instruments called  "derivatives." Yet to save the global financial system, American leaders authorized a massive bailout, which seems to be successful for those who are wealthy, have influence and privilege. But not for the rest of us who cannot find employment nor aspire to being re-educated and retrained. And for those of us living on fixed retirement incomes, our annuities have decreased in value resulting in loss of retirement income. This process has impacted millions of us.
President Obama has three years to prepare for the 'Presidential Election 2012'. In fact, there is still time to not lose additional 2010 mid-term elections. What will raise his administration's approval rating is a focus on the neglected priorities which impact too many Americans today. Can the Senate, House and White House push measures to change things for the people experiencing personal financial crisis?
Yes, of course. What is recommended is that the rules of purchase contracts be changed throughout the financial system. For example, if one purchases a vehicle or a home or runs up a student loan which becomes due, all these contractual obligations need to have a default clause which permits the individual to retain beneficial use of the vehicle or home just by payment of interest due on the principal sum balance. This would eliminate repossession of vehicles and foreclosure of homes per the current purchase contract system, which assumes that employment of the purchaser, is ensured and constant. In addition, those having student loans could work off those student loans by accepting positions in underserved areas and/or payment of just the interest due when underemployed or unemployed.
In addition, the Small Business Administration needs to back up many more unsecured loans to small businesses, especially those located in areas experiencing very high unemployment rates. It is the small business entrepreneurs who create jobs, train and employ local residents. The "Micro-Loan Concept" of economic development used by the World Bank must be applied to the current domestic unemployment crisis.
It is the small businesses that will resurrect the American Consumer Economy. Their money trickles up. Well-financed corporations are applying their capital towards robotics and automation with the outcome that production is rising while unemployment continues to rise. No nationally syndicated economist has commented on this trend which indicates that "bailout funding" of major corporations will do very little to diminish the unemployment statistics. Legislation must be passed to ensure that some manufacturing capacity of all essential goods is retained within this nation.
So the Democratic Party, Congress and the White House can still retain their current majority levels of elected officials if the business of the people is addressed. This is the major 'neglected priority' that must be addressed immediately if Obama is to become a two-term president.