Business Challenges Facing Barack Obama

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Source: BBC Business News

President Barack Obama is the 44th President of the United States of America.

He is perhaps the nearest President we have had to John F. Kennedy.

President Obama is a man of ideals, vision, optimism and hope.

And he is also unique in that he is the First Ever US President who is of Mixed Race, which could be a vital asset in dealing with some countries who are hostile to the Western World.

Credit CrunchLending is still not

being as free flowing as it should be between banks and businesses.

Interest rates are near zero!

• President Obama has said he may force certain banks into lending!

Falling House Prices

In the USA house prices have fallen dramatically. They are down some 12.7% from February 2008

Even house sales in the USA are at their lowest level since 1991. How much would the White

House be worth now?

Unemployment and Inflation

As The Phillips Curve suggests, when inflation is low, unemployment is high and vice versa.

At present some 7.2% of Americans are out of work. Is the answer to create public works programmes like FDR did in the 1930s?

Obama wants to create 3 million jobs over the next 2 years. A tall order.

Weak Dollar

The US trade deficit shrank by more than expected in March as the weak dollar led to a surge in exports, official figures show.

The slowing economy also meant that Americans bought fewer products made abroad, including cars and furniture, the Commerce Department said. The trade gap narrowed to $58.2bn (£29.9bn) from February's revised $61.7bn, well below the expected $61bn.

A weaker dollar makes US goods cheaper for customers overseas.

Protectionism or Trade Wars

President Obama has said he wants to avoid economic stimulus measures that would signal protectionism or spark a trade war.

The ‘Buy American’ slogan worried the EU and Pacific Nations. Trade Wars could end up costing more jobs.

Environment • President Obama offers hope and optimism but can he deliver on the green issues that we face?

• With the current Global Recession he may find that he has to act now to save people’s lives and jobs and have to put Saving the World on the backburner.

Good Luck to Everyone!