"CHANGE HAS COME TO AMERICA."-President Barack Obama

By, Danoosh Kapadia

The time has come. President Obama is in office and CHANGE has come to America. Obama may be a savior, but what can one man really do? The truth is, America is already in the midst of a revolution and Obama is merely the instrument for realizing this change. This New America comes from an internal revolution within each citizen—not just the election of a savior.

Economically speaking, 2008 was one of the gloomiest years in recent history. In the first six months, gas prices doubled. This drove the price of basic commodities (like milk which crossed $4 a gallon in July) through the roof. In the latter six months, the foundation that held the American economy as the anchor of the world fell to pieces. America taught the world how to invest—and the investment banks failed. Ford taught the world how to manufacture cars—and the automakers failed. So it’s not without reason that many Americans are anxiously awaiting the new presidency and its promise of economic reform.

In the eyes of the world, the average American was obnoxious and over consuming. Americans ate too much food, guzzled too much gas, and shopped too much. Nowhere in the world did people spend money as frivolously as they did in America. It seemed there was a bottomless pool of credit; which is why the baby boomers lived and died in debt. Twenty-something’s (who were up to their eyeballs in student loans, car loans, and credit card debt) thought nothing of paying upwards of $200 for a pair of jeans or $50 for a bottle of vodka. When it was possible to buy a home without putting a penny down, it became clear that something was drastically wrong. Clearly there was an urgent need for change—a change of mindset, a change of attitude.

Although American markets were put through the wringer in 2008, the world markets are in even worse condition. Amid all the doom and gloom, the U.S. still remains the world’s largest economy—a heavyweight title it isn’t likely to relinquish without a tough fight. Europe and Asia are still waiting on the dollar to regain its strength to boost their own flailing economies. One thing is certain: after an unprecedented $850 billion-dollar government intervention, the virtual nationalization of many industries, and a massive shakeout of many sectors ranging from finance to print media, the post-recession economy is not going to resemble the pre-crisis one by any measure.

The recession, however wrenching, will lead to the restructuring of many sectors. Thirty million dollar bonuses in the finance industry and $0 down mortgages will likely be a thing of the past. Many industries, such as aerospace, technology, and pharmaceuticals are expected to remain competitive. After all, the world still wants its iPhones and a cure to cancer. The U.S. will still be a big market for cars, but hopefully we will soon see the demise of the Trailblazer and the Hummer.

The new stimulus package should create jobs and get consumers back in stores. General trade should not change too much either. America will continue to sell airplanes to the Chinese, who will in turn ship back inexpensively manufactured apparel. But if American consumers stick to their new, thriftier ways the biggest loser in all of this might be the retail sector. As consumer confidence dips and the pressure to cut prices and trim losses increases, more chains might join the fate of Circuit City.

Mauro Guillen, a professor at Wharton School of Business said it best; “The U.S. economy is dynamic and technologically advanced, and that won’t change. The U.S. will continue to be ahead.” China may have mastered low cost manufacturing and India may be the land of the call center, but the new ideas that make it all happen still come from the land of innovation—the United States of America.