NOT everyone understands the implications of fiscal developments in an economy. What a simple citizen realizes (and cares more about) is when there’s not enough money to spend, and not enough food to eat. This is the kind of scenario when the country and its constituents are in danger.
In the wake of the US’ credit rating downgrade from triple-A to AA+ with a “negative” outlook, Central bankers in Asia are in constant communication to address its economic and market impact. Despite not having immediate effects on other economies, coordinated global action was still called for a credible solution.
The news is grim.
Given the uncertainty, the world economy stands on a shaky balance, and other countries have the potential to suffer the similar downgrade.
13.9 million Americans are still unemployed, and regrettably still in debt.
The US has no other choice but to deal with fundamental issues after its debt downgrade. It is mandatory to take all necessary measures to support financial stability and growth.
According to the National Bureau of Economic Research, the United States has suffered 11 recessions since 1945. Most people heed the warning against putting all the eggs in one basket — but with recent gyrations in almost all domestic economies, even the hardiest citizen suffers a case of the jitters.
Programs that offer tangible and direct financial benefits are yet to be identified, to draw out an economic roadmap toward recovery. Citizens, for their part, should recognize the opportunities of being fiscally responsible — not just for the present nor for themselves alone, but for their economy’s welfare as well.It will bring them to a better position, personally and professionally in the future.
Today’s economic realities are causing more and more people to take financial wellness seriously. The recession’s lingering effects are quite extensive, causing challenging years for American citizens.
Most have gone through drastic life changes to make ends meet. Many have tightened their daily spending and have re-adjusted their future financial plans.
Some have relegated both their lifestyles and spending habits, while still caught between the choices of making mortgage or credit card payments, purchasing basic necessities, or paying utilities.
The Philippines was able to dodge the last US recession’s global impact. Now, with another threat of US recession looming, the local economy is hinged on the tenet that “good governance is good economics.”
The country is still looking closely on what exactly the US credit downgrade presents, and its significance to a developing country.
The current administration is confident that the current unfolding in the US economy will cause minimal short- and long-term effects on the country’s optimistic financial strategy.
With fiscal sustainability and macro-economic stability, the country is poised to buffer against any market shock that the turmoil-stricken global economy might bring.
The extent of the deterioration of living standards and intensification of restrictions in the US do not only concern Americans. The sanctions of the degraded rating are only new to most Americans, because they have enjoyed the highest economic rating for almost a century.
This may also bring something worse for Filipinos who have survived the years with simple living. The recent US downgrade teaches everyone that it is better to expect the unexpected, than to be caught off guard and suffer.
Living under conditions of a tight closure system, from time to time dependent on what’s going on, grants the Philippines only one step ahead from facing the realities crippling the US today.
There are encouraging signs that the Philippine economy is starting to stage a legitimate growth. Only time will tell if the current administration’s drive for good governance is enough to help the local economy and take it to the next level.
(www.asianjournal.com)
(LA Midweek Aug 10-12, 2011 Sec A pg. 6)