When the US spread the gospel of laissez-faire economy around the globe three decades ago, it was successful in recreating much of the world in its own image. The doctrine of open markets seemed to work, at least for the US, and helped in generating wealth and increased the growth rates by leaps and bounds. Free from the intrusive government regime, technology innovated and created a New Economy with a lot of exuberance. Recessions banished to history and everything seemed to be fine until the bubble burst in late 1999 and the economy was again in doldrums.
The US economy has been the cynosure of all eyes since then. After an unprecedented growth for a decade, the tech-led boom came to an end and all endeavors to revive the economy proved to be ineffective. Despite a series of ten interest rate cuts by Greenspan and a tax cut signed into law by Bush, the economy failed to revive. Unemployment rates are creeping up, business investment in new factories and equipment has stalled, investors now face a stark future, and consumers are growing increasingly jittery. Big companies have announced about 200,000 layoffs and have put expansion plans on hold. Experts opine that the economy has to go with the present state of affairs for the next couple of years, if not more.
The terrorist attacks of September 11, amplified the plight of the economy. It manifested as a blatant challenge to the political, financial and military supremacy of the US. For the Bush administration, the declaration of war against terrorism was Hobson's choice. And now after the US bombings, the Taliban regime will be replaced by the Northern Alliance, conditions remain unchanged. Neither the Bush administration has been successful in obliterating the Taliban nor has it been able to trace Osama bin Laden, the maestro of terrorism. As of now, uprooting terrorism, the vow of the Bush administration seems to be a cry in the wilderness. |
