Former President Bill Clinton spoke to the franchise industry at the IFA Franchise South Expo last week and endorsed Barrack Obama’s economic stimulus bill (formerly know as the American Recovery and Reinvestment Act of 2009). President Clinton feels that the effects of the stimulus package will start being felt as early as 15 months, but may take up to two years. He believes that the franchise and small business community should be “optimistic”, and expects the economy to “come out on the other side stronger than ever.”
Clinton feels that the economic stimulus plan will have to accomplish a couple of major goals. First the housing industry has to rebound. The recovery bill should rewrite home mortgages so they are affordable, while simultaneously providing more TARP funds to banks for home loans (that is if the banks are actually using the relief to lend money!). Next, the recovery bill will have to buy the toxic assets that are clogging up the money lending pipeline. These “assets” can be sold after the economy recovers for profit, Clinton theorizes.
However Clinton did criticize the recovery plan for not providing enough stimulus to the franchise and small business community. “More loans could be made available to small business” said Clinton. The ex-president urged the franchising and small business community to make their voices heard, “Go back to Congress and the White House” and lobby for more support from your representatives for small business.
So how does former President Clinton think we can recover from the current economic recession? It can be summed up with one phrase, “lending and spending”.