Debt Resolve 2011

4 08 2011

Congress and the White House have made a final decision concerning the debt crisis. The resolve revolves around a two-stage process, the first stage being a $917 billion savings, including approximately a $420 billion reduction in the national security budget. The cuts would be accompanied by a $900 billion increase in the debt ceiling. The second stage entails a $500 billion increase in the debt limit which would be subject to a congressional vote of disapproval that can be vetoed by Obama.

Although this was a temporary fix for the government, nothing in this bill addresses the economic problems that our country is in. There was nothing stated in the package about the fundamental problems that got us into the financial situation we are in or how to get us out of it. This causes some problems such as unemployment which will remain to be high! Established businesses won’t be hiring at a pace that would improve our unemployment rate, business will slow down, profits will diminish or disappear, and income will be depressed.

With an even tougher economy than the last two years, bad debts will surely increase and they will become harder to collect as money becomes more scarce! This is the same pattern in any recession.

Businesses can help themselves by outsourcing their receivables and collections. By down-sizing these departments, organizations can focus on sales and growth and spend less in areas such as Accounts Receivable and Debt Collection. Another positive for this way of thinking is that by outsourcing professionals who only do this for a living all day long will most likely have far better results than a person who wears many hats as companies downsize. The key to American economy is to keep the business in America and not outsource outside of the United States.

These days it is hard to make the right choice when it comes to the US economy. As Senator Lamar Alexander, a Republican from Tennessee said, “This problem wasn’t created overnight, and it won’t be solved overnight.” There are still many steps this country needs to take until the economy will get better.

In summary let’s keep American’s working and let’s support American companies. Teamwork is needed more than ever!

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