The US bailout

In keeping with his promise of rescuing the American economy from the lowest ebb of its current financial meltdown, the newly elected US President, Barack Obama took the quickest possible legislative measure to announce his economic bailout package of $787 billion on February 14, 2009. Incidentally, perhaps Obama chose Valentine’s Day as the most appropriate occasion to express his deep sense of love for the people of his country which happens to be the world’s largest economy. It is, of course, not the first time that such economic stimulus is put into operation to reverse the down-turn process of the US economy under global recession. After the world economic turmoil got triggered by giant American financial institutions in October 2008, then US President George W Bush launched his first financial rescue package of $ 750 billion, followed by additional fiscal and monetary revival measures by both his Republican government and the Federal Banking system in quick successions. Even before Obama assumed his presidential office, the US economy had witnessed more than $1000 billion rescue package under public sector intervention, but the economy has not yet responded favourably to the same.

A number of employees numbering around 4 million were laid off in the US under the impact of recession. What is important to note about the present US economic stimulus bill of Barack Obama administration is that a few strategic courses are embeded in the legislation to benefit American laid-off employees, cut down avoidable costs on account of salary bill of banking companies and to impart a fresh lease of life to the sagging financial institutions. Thus, the bill prevents the companies receiving bailout funds from doling out cash bonuses and almost all other incentive compensations for the five most senior officers and 20 highest-paid executives at large companies specified, the limit to bonus during the time of bailout from hard-earned tax payers’ money being one-third of their annual pay. The other important provision of the bill which, however, could affect the Indian IT professionals is that the banks receiving tax payers’ bailout will not be allowed to import cheaper labour from overseas while American workers remain out of employment. The bill will thus effectively place a moratorium on the H-IB visa programme of the US. The provision has enraged the American Immigration Lawyers’ Association, which had earlier also opposed the measure. Since the law will now prevent US companies from hiring the best available global talent (mostly the Indian techies), the American Recovering and Reinvestment Act, popularly known as the stimulus bill will possibly be counter-productive. Since mostly Indian techies will be affected, the Government of India, presently in very good diplomatic relations, may take up the issue with its US counterpart for the benefit of our IT professionals. source: assam tribune