Obama’s cash advances are critical for the country’s recovery

Some good news at last

President Obama’s huge cash advances to the economy in the form of stimulus packages have started to show some good results at last. The first ray of hope appeared last month when the data released by the Commerce Department indicated that after declining for six consecutive months, new orders for manufactured goods had finally taken a u-turn in February. Interestingly, the bounce back was much better than what analysts anticipated. Although there was the news that the manufacturing sector has contracted for the 14th month in a row due to continuous cuts in production, one must not neglect that small rise in new orders as it confirms that all the thought processes and the cash advances that have been injected in to the economy are actually working.

A much needed relief

Though people were hopeful that the economy would start stabilizing by the second half of 2009, there was no hard fact to back it up until the Commerce Department’s data was published. As per the report, new orders for manufactured goods had risen by $6.1 billion or 1.8% in February to $352.2 billion in March providing the much needed relief to anxious Americans. The rise sounds even better because during January, new orders had witnessed a big fall of 3.5%. Experts had forecasted a rise of 1.4% in February. However, though the analysts were beaten in their prediction, they must get the credit for at least predicting a rise. Meanwhile, the Institute of Supply Management’s (ISM) factor index, which shows the overall mood of the sector, has moved up from 35.8 in February to 36.3 in March creating a wave of optimism in the economy.

But this is not enough

Despite the good news, we must not forget that it is just a silver lining and the dark clouds are not yet cleared. The manufacturing sector has contracted for 14 straight months and demands are still falling. Even though the ISM factor index has risen a bit, it’s still well below the 50 mark, which indicates that contraction is still taking place. Worse than that is the fact that ADP’s monthly employment survey has revealed that private sector companies have cut 742,000 more jobs in March alone.

But then, as we say, ‘something is better than nothing’; the manufacturing data proves that President Obama was correct when he was saying that he could visualize something, which we can call “glimmers of stabilization.” Moreover, this also shows that the hefty package of cash advances he has planned to infuse into the economy is taking us in the right direction.

Obama’s cash advances can save the day

We can now say that President Obama’s big budget rescue plan actually holds great value from here on. As the recently released positive data shows that the bailout packages are working for the better, Mr. President’s plans in the pipeline will definitely be critical for the country. It can set a better pace for recovery by creating higher job opportunities and thereby adding a greater degree of purchasing power in the hands of the Americans, who are constantly low on their demands. Knowing that the ice has started to melt, it’s definitely beyond any doubt that President Obama’s cash advances are critical for the country’s economic revival and our future.