My Children’s Children’s Debt
[Authored by Joseph Ormont, MBA Candidate]
Yesterday Congress approved the President’s $3.6 trillion budget, paving the way for a $1.7 trillion deficit (as projected by the Congressional Budget Office) or 11.9% of Gross Domestic Product – the largest deficit as a percentage of GDP since 1945. What’s more is that this figure doesn’t take into account any of the other stimulus/recovery efforts or unfunded liabilities including:
•$787 billion American Recovery and Reinvestment Act passed in February.
•$700 billion Troubled Asset Relief Program (TARP) passed in 2008.
•Potentially billions more that could result from the Treasury’s and Federal Reserve’s plan to ‘clean up’ toxic assets on financial institution’s books through taxpayer-backed loans and private investment.
•Unfunded liabilities in Social Security and Medicare/Medicaid that some sources have quoted as being nearly $56 trillion.
I recently saw an author make the statement “Is it just me, or has a ‘trillion dollars’ lost much of its aura?” Well, definitely not from my perspective. It is very concerning the debt obligations that are being placed on my generation (Gen Y), and without a doubt, my children’s children’s generation.
While it is hard to argue that action needed and still needs to be taken to address the economic downturn, such actions consistently seem short-sighted. "Fixing the economy" won’t come from spending, but rather honestly discussing and addressing key issues and investing for the long term (especially in science and technology, which feeds entrepreneurship and job creation). While, of course, this is oversimplified, the fact remains that I love this country and believe strongly in the American "mind-set" – yet we must re-prioritize as a nation, otherwise we’ll be leaving it to our children and grandchildren to clean up.
Authored by Joseph Ormont, MBA Candidate
Time to revisit the Embargo idea
[Authored by Mr. Jose Gonazalez, Instructor of Entrepreneurship and International business]
A bipartisan group of US senators has recently introduced a bill that would allow US citizens to travel freely to Cuba. This has added fuel to the fire on the debate regarding the embargo to this Caribbean country of almost 12 million people.
I’ve been interested for quite some time now, about why we continue to dismiss opportunities that may be available for engaging in trade with Cuba just because they’re a communist nation. While I understand the criticism and emotions that surround Fidel and its era- I’m no fan myself- I think we’re long overdue to revisit our policy to engage in business with the Cuban people. We’re stuck in thinking that because they’re a communist country, we should not trade with them. What about China? What about Vietnam? Americans can travel more easily to Iran or Venezuela, which today pose more genuine security and economic threats, than to Cuba.
After 50 years, it’s clear that the embargo didn’t work. Sen. Richard Lugar, the ranking Republican on the Senate Foreign Relations Committee recently commented that "After 47 years ... the unilateral embargo on Cuba has failed to achieve its stated purpose of bringing democracy to the Cuban people.”
Businesses for years have tried to persuade congress to lift the restrictions. From dairy farmers, to service companies in the hospitality industry- they all claim Cuba is a potential attractive market and are ready to sell, invest and do business on the island. A team of my International Business students reported during their presentation that there have been thousands of trademark applications in Cuba from US companies that are anxious and ready to go… when they’re allowed. Time to have a conversation about the merits of the embargo, and explore what a more congruent trade policy should look like responding to the realities of 2009.
Authored by Mr. Jose Gonazalez, Instructor of Entrepreneurship and International business
Young Alumni Share Experiences & Advice with Students during Business Bistro
Over 30 young Belmont Undergraduate Business School Alumni met with current students yesterday at the “Business Bistro,” a networking mixer sponsored by the College of Business Career Development Center and the Business Student Advisory Board. The Belmont Alumni, representing companies such as Gaylord Entertainment, Smith Barney, Kirkland's, Capital Financial Group, Caterpillar Finance, Tractor Supply, Thomas Nelson Publishers, EMMA Inc., HCA and Big Brothers/Big Sisters, shared their professional experiences and offered advice to current students. Rebekah Gunkel, 2005 marketing graduate now with Protherics, Inc., had this to say about the event, “I loved the Business Bistro event! It was a great opportunity for students to see young alumni, not much older than themselves, using their degrees in different capacities. I think it really helps bridge the gap between a college degree and a career when you talk to someone that had the same major, took the same classes, even sat in the same seats at Belmont, and is now successfully using the information first learned here on a daily basis.”