Be them developed or developing, nations across the globe are rolling out economic stimulus packages, all tailor-made to suit individual needs, to shore up the sinking economies. From the States to Malaysia, the reeling economic trends have prompted the decision makers to crack their heads hard to come out with revival plans.
China was one of the earliest to pump in to stimulate the economy. There the factories are closing down like a domino effect. The unemployment rate is shooting up, giving rise to a potential social unrest. One source told me that, if the GDP growth rate falls below 7%, China would likely be dragged into to become socially unstable.
Yesterday,Senate voting approved the 789 billion stimulus package bill in U.S. This paved the path for the bill to be heading for passage in Congress by the end of the week.
The package didn't incite the market at all. Dow Jones reacted with a meager rise of 50.65 points, signalling that the stimulus may work very limited wonder.
Today Asian stocks generally decline on doubts that U.S. stimulus measures will revive growth. That shows how dented is the market sentiment.
Steve Forbes, former presidential candidate and Forbes magazine publisher, lambasted the fiscal stimulus programme working its way through Congress as a waste of money.
This guru is respectable in acute business acumen. I look up to his views.
According to Forbes, if you want sustained economic growth, you need incentives.
As such, if you want to throw around a lot of money, make sure it gets into people's hands in a way as direct as you possibly can do.
That makes me think of our soon-to-be released second economic stimulus package.
How much would the 10 billion stimulus get into the hands of our rakyat "in a way as direct as possible"?