by Ana - I'm Learning

Created on: April 07, 2009

President Obama came to office on the promise of change. This went down well with Americans as everyone realises that America needs to change and for the better. It is true and what America needs today is change. Everybody realises that unbridled capitalism without controls is a failure. There needs to be better regulations and control which will make the systems more robust and strong.

Change for the better is the only way that American car makers can improve and remain in business. Japanese car makers like Toyota and Honda actually changed themselves over the last couple of decades and hence they are in a stronger position than the likes of General Motors, Chrysler or Ford.

The Detroit gang refused to change and instead lobbied with the government to get favourable regulations. They missed their chances to reform and be more agile and profitable. Instead they continued to produce cars that were inefficient and unsaleable. They refused to create cars that were more fuel efficient when the customers were wanting them. Is it any wonder that the wages of the Detroit companies is double that of the Japanese car makers?

The scandalous mess of the financial sector is now history. We all know about the sub-prime crisis and how several large banks, financial institutions and insurance companies have gone bankrupt. Probably all the mess has still not been cleaned and a lot more needs to be done. The outrage over the ridiculously high executive bonuses forced the government and the Congress to act. At the same it must be remembered that these people helped the companies to earn high profits and that is how these bonuses were justified.

But with the market crash all these profits disappeared and all that the companies were left with were tottering balance sheets which needed government bailouts for survival. We can argue about the bailouts, but if the money helps the banks and AIG to survive and retain thousands of jobs then the money spent is justified. However, the regulatory systems need to change and ensure that in the next couple of decades, we do not land in this mess again. So the CHANGE has to be for the better.

The above are just two examples where President Obama needs to focus his efforts to change America. It is not an easy task and will require tremendous courage and people's support to be successful. America needs change in all sectors of the economy - fianancial services, banking, energy, government, automobiles etc.

There is urgent reforms need in the healthcare system. The same holds true for the education system. All these areas have degraded over the years and they are at their lowest if not the lowest. We all know the only way to go from the lowest is up and that is how it will be for America. This is the country's chance to reform itself and transform itself into a new country.

The President has shown that he is serious by getting the GM CEO to quit thereby sending a strong message to all the stakeholders - Change or Perish. The same holds true for the entire American nation.

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