I have a passion for business and a love for technology. I am Associate Product Manager at collaboration software company Central Desktop. I studied finance and entrepreneurship at Chapman University. Follow me on twitter or read about random things I find amusing.
It has typically been the monetary policy of the Federal Reserve to cut interest rates to inspire borrowing and thus grow the economy, but what happens when it doesn’t work? We change the target of course!
In a typical economic downturn, lowering interest rates can help relieve some pressure and create the growth that the economy needs, but the United States is now in uncharted territories; 0% Fed Funds rate. Will it work? We will see, but it’s not very likely.
Japan experimented with 0% interest rates from 1999 to 2006. It took 7 years to recover from that downturn.
The problem with a 0% interest rate is that there is no incentive for the bank to loan out money. Of course, everyone wants to borrow at 0% interest, but nobody wants to loan at 0% interest. Of course, the Fed Funds rate will never truly hit 0%, but it will inch closer and closer to 0% where there will be fewer and fewer loans made.
It’s a necessary move, but it’s not likely to make the difference we need to bring us out of this recession.
I am convinced that we need a turnaround in the fundamental belief in the strength of our economy, a renewed spirit of consumerism dictating that we spend and earn wisely and without greed.
This letter is a response to the open letter written by Cory Miller to Barack Obama.
Dear Cory Miller:
I take major exception to your recent open letter to Senator Barack Obama. You see, your simplistic description of the middle class is demeaning and elitist.
In your letter you state “…to those who have never toiled, sweated, fretted, fought, stressed, or risked anything.” I am offended that you would even begin to suggest that I, as an avid Obama supporter, have never “toiled, sweated, fretted, fought, stressed, or risked anything.”
I, too, am an average American. I grew up in a very middle class family where my parents struggled financially, but were always able to provide me with a good life with no government assistance. I am now 21 years old and graduated from an underperforming high school, managed to work hard and gain acceptance to a respectable private university in Southern California. I now am a senior here at Chapman University, which I was able to attend because of my financial aid. Yes, I do receive government assistance to attend this university, however that does not mean that I didn’t work hard to get here nor did I ever expect to receive assistance. I have spent the past 21 years of my life studying and working hard to get where I am today. On top of being a full-time student I have worked full-time since my Junior year in high school as well as owning my own business. I will graduate from Chapman University with over $20,000 in student loans and my parents have taken out a $6,000 loan, all of which I will work hard to pay off over the next decade.
I am apalled that you would assume that because my family is “middle class” that we haven’t tried hard enough. I, nor anybody in my family, has ever expected anything from our government, all the while working just as hard paycheck to paycheck just to get by with little opportunity or time to move up.
What we do expect and are entitled to, however, is for our government to favor the people’s interest over the interest of big oil companies and to treat everybody fairly. I am happy to pay my taxes, whatever they are, so long as the government is working on behalf of everybody’s best interest. What entitles you to a tax break as a wealthy American? You seem to feel a sense of entitlement to that Bush tax cut that John McCain promises to extend. Why should’t I get a tax cut?
I truly commend your success and honorable business practices, but that is not evidence that proves why you should receive a tax-cut over anybody else. The Obama plans are not to punish any single class, but rather to restore fairness to the tax code. Everybody should have the opportunities that you have had to start your business, and unfortunately the Bush policies of the past 8 years have made it nearly impossible for Entrepreneurs to have the same opportunities that you had to get bank loans for your business. Again, we don’t expect or feel entitled to anything but opportunity and fairness.
I am disgusted that anybody would believe that people in the “middle class” don’t work as hard or are lazy or haven’t tried hard enough to get where we are. We don’t expect government handouts, we expect our government to work in the best interest of ALL people, not just the wealthiest people.
Sincerely,
Chris Goodrich
Central Desktop launched the industry’s first customer network allowing users to communicate and share their experiences using Central Desktop.
I have been working on this project since July, so it is nice to finally see the project finally launch with such an impact.
If you get the opportunity, take a look and see how the more than 200,000 Central Desktop users are using Central Desktop to improve productivity and get things done.
