The G-20 Meeting - Archer Daniels Midland Report

The current economic crisis is endangering the American way of life. Following the bursting of the housing bubble, the credit crisis and the collapse of the investment banking industry, both the American and World economies have been left in turmoil. In order to alleviate the financial burden on the American population and specifically the American farmer, Archer Daniels Midland has developed a plan to calm the recession and restore the American economy to its pre-recession levels.
The most important thing for the American government to do currently is to allow the United States dollar to fall relative to other currencies. The current account deficit that we currently run with China and the overall trade deficit we run worldwide are detrimental to the American economy. By allowing the dollar to slide relative to foreign currencies, American exports will become more competitive with foreign goods, specifically, the American agricultural goods cultivated by the American farmer. As the backbone of the United States spirit and an important part of the economy, agricultural exports rising are beneficial to the economy on the whole.
In addition to allowing the dollar to slide, the United States government must lower corporate taxes. The current restraints on corporate profits such as the capital gains tax and other windfall profit taxes take money out of the economy that could be used in reinvestment in the United States economy. By lowering these and other corporate taxes, the American corporation would be free to invest in new technology, increase employment and generate more revenue. Coupled with a sliding dollar, the amount of American exports would skyrocket, putting the United States trade deficit in the past.
Increasing the amount of agricultural subsidies given to United States farmers and agricultural exporters would stimulate the economy and allow both consumer and corporate spending to increase. With increased capital flow, the American farmer can reinvest that money in ways beneficial to the United States economy. Whether it is the purchasing of a large investment such as a new combine or reaper, or something on a smaller scale such as supporting local businesses, increased subsidies for the American farmer would put money back in the economic circle. Similarly, increased subsidies for agricultural corporations such as Cargill and Archer Daniels Midland would reinvigorate the American economy. Investment in new agricultural procedures and equipment on a large scale would add capital back into the economy, and allow the business cycle to again grow.
The final step in improving the current economic situation is the Federal Reserve maintaining the current interest rates. Low interest rates promote economic investment and boost the amount of capital in the economic cycle. The money multiplier effect is utilized much more efficiently when money continues to flow in and out of banks. The amount of loans being offered currently could reinvigorate the American economy across the board, not only in the agricultural sector.