Why did the US economy crumble so fast over the past year? How did the financial industry get it so wrong? How to stop it from happening again? All these questions are still haunting the minds of policy-makers all over the world. The US was badly smacked by the meltdown and the way it responded, was the most crucial issue. 

To answer the queries arising in the minds of Protons on the US response to the Global Credit Crisis, PROTON business school in association with The Rotary Club of Indore Professionals, had Mr. Michael Newbill in the campus.

Mr.Newbill is the Chief of the Economic and Political Section in the U.S. Consulate in Mumbai, India. Previously, he had served as the Desk Officer for India in the Bureau of South and Central Asian Affairs at the State Department, with responsibility for all economic and consular issues with India. In 1994-95, Mr.Newbill was a Rotary International Ambassadorial Scholar at Jawaharlal Nehru University in New Delhi.

The session started with the traditional lamp lighting ceremony and the introduction of the guest by Dr. Vinay Goyal, the Dean of PROTON business school along with the dignitaries of The Rotary Club of Indore Professionals. Then came the enlightening speech by Mr. Newbill.

Mr. Newbill very beautifully structured his speech by outlining the causes of the Global Financial crises, measures that the U.S. government has taken to recover its shattered economy and the future of the financial system as a result of these measures.

The speaker threw light upon the main reasons that led to the slowdown and why the developed countries like America and Europe faced the crises. He added that the impact of the crises was huge which led to bankruptcy of companies, loss of jobs and loss of confidence of people.

Mr. Newbill said that to cope up with this massive loss of the economy, the Government took various measures as a part of its reforms, which included providing a fiscal stimulus plan for the economy to emphasize support on household expenditure, tax cuts, improve education, and improve energy efficiency and providing bailout packages to financial institutions and bankrupt companies. In addition to that the US government has also formed a financial regulatory system to ensure that such kind of crises does not come up in future again.

He said that the major issue was to break the vicious circle of the crises and to lay foundations of a firm productive cycle. Also the main concern of the Government is to improve the employment rate.

He talked about the various indicators of improvements such as positive customer’s sentiments, improved business reports, slowdown of GDP contraction, and increase in Dow Jones positive growth in the economy. Mr. Newbill said that the unemployment rate is still high and the Government is taking corrective measures to reduce it. 

According to him, the three issues those are important for the US government at present are the Iraq & Afghan issue, developing a climate care agenda, and a proper health care system.

He said that as a country now America has to make a choice of how to spend on health care, natural gas, comprehensive energy policies, and infrastructure. Also he said that it will take time to rebuild the American economy and for this they have to export more and import less, also they have to reduce the oil consumption and move towards the natural biogas and renewable sources of energy and to give more emphasis on the upliftment of the middle classes. 

Mr.Newbill ended the session with the note that this recession has taught the US and the other developed countries the importance of structuring of the economic policy and a well regulated financial framework.