Congratulations, Mr. President. Here’s how to fix the economy.
In a letter to President Obama, PIMCO CEO Mohamed El-Erian offers a four point plan for getting the country back to 3% annual growth and less than 5% unemployment. He challenges the president to enable and protect what works well in America today, and to help rehabilitate what has stumbled, what continues to struggle, and what is getting increasingly marginalized.
The four points El-Erian outlines are: 1) To restore the flexible functioning of the labor market. 2) Reform housing and housing finance. 3) Create a more robust intermediation system. 4) Remove the immediate threat of the fiscal cliff.
El-Erian also touches on the importance of congressional cooperation. Our dysfunctional Congress has retarded economic recovery and financial sustainability. It has been three years since Congress has approved an annual budget. El-Erian further encourages President Obama to put proper and timely pressures on Congress to cooperate.
To read about the details of El-Erian’s four point plan please CLICK HERE.