Global Economic Crisis

On November 15, the leaders of 20 nations and the major multilateral economic institutions will gather behind closed doors in Washington to discuss the future of the global economy. Led by outgoing President George W. Bush, this summit will take place as the global economy is teetering on the edge of a precipice. What can an international response do to alleviate the growing global economic crisis?

The world faces a severe economic recession in 2009 and unemployment levels are already surging in the United States and many other countries. The International Labor Organization predicts that 20 million people across the globe will lose their jobs as a result of the global economic downturn. This systemic crisis comes on top of the unprecedented rise in food and commodity prices earlier in the year that has caused rising hunger problems in developing countries. It also occurs against the backdrop of accelerating climate change which most severely affects the poorest across the globe.

What will Congress do to address the economic crisis here in the U.S.? After the $700 billion bailout for Wall Street Banks, Congress returns the week of November 17 to begin the unfinished business of addressing how the economic crisis is wounding the rest of the U.S. population. With unemployment rising, consumer spending slumping and credit card debt mounting, people are feeling deeper economic insecurity. There is no indication that the economy will improve in the short-term and many observers note this might be the beginning of the Great Unwinding, not the middle or the end.

President-Elect Barack Obama gave a press conference last Friday, the same day the nation learned of 240,000 jobs lost in October alone. States and localities are shedding jobs as they plunge into fiscal crisis. The dismal figures are part of a 10 month job loss trend and are the highest in 14 years. Obama laid out his plan to provide an extension of unemployment insurance, a tax relief package for the middle class and a stimulus package that should be passed as soon as possible. Congressional leaders are said to be contemplating immediate measures in the lame duck session such as extending unemployment benefits, expanding food stamps, financial aid to states and foreclosure mitigation.

Meanwhile, there are already signs that Wall Street is abusing the public trust by continuing bloated CEO compensation, lavish meetings at spas, and raking in public subsidies. The Washington Post reports that during the bailout debate, the Bush Administration secretly shoveled an additional $140 billion in windfall tax cuts to the very industries taxpayers were bailing out.

What kind of international approach will ease the global economic crisis? How are the economies of the world interdependent?

What is the unfinished business before Congress in terms of helping Main Street and the real economy? What should be included in an economic package that will truly stimulate the economy? How will we pay for it? How can we shut down the Casino of Wall Street greed that refuses to reform its culture of excess? What should President-elect Obama�s priorities be to fix the economy in 2009?