Black MBA - Winter 2008/2009 - (Page 20)

FEATURE The First Hundred Days economist, as Director of the National Economic Council; Christina Romer, an economics professor at the University of California-Berkeley, as chair of the Council of Economic Advisors; and Mary Barns, an African American and a longtime aide to Senator Edward M. Kennedy, as director of the Domestic Policy Council. Spriggs says the financial crisis might force the country to address some fundamental problems that have been glossed over in the past. “Wages are down,” he explains. “And in order to make it, people have been borrowing money. So we put ourselves into this deep hole. The banks are having problems not because of a lack of money, but because of all the debt people are in.” Spriggs says the automobile industry’s request for a loan presents an opportunity to address some larger issues. “People are attributing this [request] to consumers not buying GM cars. They don’t get it. People are not buying cars – period,” he notes. “There is overcapacity on the global market. Here’s the problem: If there’s overcapacity on the global level, why is it that the United States alone, because of its ideology, is saying, ‘OK, fine, we’re going to cut production’? Tokyo isn’t saying that. You don’t hear that in Germany. Why are we cutting production? Why are we disarming ourselves?” If U.S. automakers fail, Spriggs predicts foreign manufacturers will close their plants here, further compounding the unemployment problem. “If you think Toyota is going to stay in the United States when there’s no Big Three, it ain’t happening,” he says. “The only reason Toyota and Hyundai came over here was to answer an implicit threat that at any moment, Congress might say, ‘Buy American.’ Without a Big Three, they don’t need to be here – and they won’t be.” Another problem, according to Spriggs, is that some of America’s ways of operating are outdated. “The big issue is you need to encourage workers who are in areas of high unemployment to leave,” he said. “The problem with a state-based benefit is, ‘I got to stay in the state to get my unemployment benefits.’” Spriggs argues that unemployment benefits should be administered by the federal government, even if on a temporary basis. “The analogy I use is Social Security,” he says. “When you’re old and you think D.C. is too expensive and you want to downsize and move to Idaho, fine. Your Social Security check goes with you. The same has to be true for unemployed workers.” A Hard Start As Obama grapples with these and other proposals, his selection of economic advisers sent a signal to Wall Street that Obama will govern from the center. He took an interesting approach picking his cabinet. Obama has spoken publicly and often about how impressed 20 BlackMBA • Winter 2008/2009 • www.nbmbaa.org http://www.mattell.com/careers http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Winter 2008/2009

Black MBA - Winter 2008/2009 Contents Preserving Dr. King’s Legacy: Harry E. Johnson is Six Years and $100 million into his First Fundraising Effort Online: www.nbmbaa.org and www.blackmbaonline.com Up Front: Inauguration Takes Over D.C. From the President: Connecting With the Basics The First 100 Days – Already in Progress Back to Basics: Finances 101 Is the Middle Class Disappearing? – Your View From Medals to MBA Conference Highlights Market Forces: The Job of Trying to Find a Job in a Tight Market Applying to an MBA Program?: Avoid Making these Five Critical Mistakes How They Did It: Catching up with the Winning Teams from NBMBAA’s 2008 National Case Competition Change It Up: If a New Job is at the Top of your New Year’s Resolutions, it’s Time for Careful Planning and Preparation Bull Market: Now is the Time to Take Advantage of Web 2.0 On the Move: Member News, Promotions and More Backstage at BET: NBMBAA’s Leadership Institute Takes on BET’s Case for Growth Toronto Rising: NBMBAA’s Toronto Chapter is on a Progressive Track, Building Strong Partnerships and Exposure as Membership Climbs NBMBAA® Chapters: Find Your Local Chapter Here Do What You Love: Turning Your Passion into a Successful Business Requires Patience, Planning and Plenty of Hard Work Above and Beyond: Meet the Winners of the 2008 Wells Fargo/NBMBAA Entrepreneurial Excellence Award Decorating by Design: Michelle Rider Leaves Corporate Life for Entrepreneurship Culture Shock: Black Museums Nationwide Appeal for Greater Support from the People whose Heritage they Strive to Preserve Gear Up for 2009: Books to Herald Success in the New Year Advertiser Index: Who’s Who in the Issue

Black MBA - Winter 2008/2009

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