The 'Marketing pitch' in $700 billion Financial bailout
The bailout package which may now even cost $ 850 billion (on paper, $ 700 billion), has now gotten through the American Senate, 74-25. The House too is expected to pass the same, as opposition to the plan has now softened.
I too don't believe in bailouts. Why bailout firms that are irresponsible in their financial practices? Just as these firms would never bailout their consumers who are irresponsible, say, with their credit card usage. But then with a severe economic downturn looming ahead, something needs to be done. However, what interests me, is the way the bailout's been pitched to the American public. This 'pitch' takes an extremely important form as perceptions formed in the minds of average Americans will turn critical when American lawmakers, Republicans and Democrats come up for re-election, this November.
So what's the pitch? The bailout's not as much about rescuing irresponsible Wall Street firms, its about 'saving' the Main street. Its about ensuring that American public money isn't wiped out, due to faulty investment practices of the so called financial whiz kids.
Will this pitch be convincing? On the face it, its seems so. In fact the opposition to the bailout eased, after the Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance. The package also extends several tax breaks popular with businesses. It would keep the alternative minimum tax from hitting 20 million middle-income Americans and provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.
Note, the lesson in this whole mess is not just a financial one, but is one that involves marketing too. As much as its about a financial bailout, its also about selling that bailout to the ones that matter. The average man on the street.
I too don't believe in bailouts. Why bailout firms that are irresponsible in their financial practices? Just as these firms would never bailout their consumers who are irresponsible, say, with their credit card usage. But then with a severe economic downturn looming ahead, something needs to be done. However, what interests me, is the way the bailout's been pitched to the American public. This 'pitch' takes an extremely important form as perceptions formed in the minds of average Americans will turn critical when American lawmakers, Republicans and Democrats come up for re-election, this November.
So what's the pitch? The bailout's not as much about rescuing irresponsible Wall Street firms, its about 'saving' the Main street. Its about ensuring that American public money isn't wiped out, due to faulty investment practices of the so called financial whiz kids.
Will this pitch be convincing? On the face it, its seems so. In fact the opposition to the bailout eased, after the Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance. The package also extends several tax breaks popular with businesses. It would keep the alternative minimum tax from hitting 20 million middle-income Americans and provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.
Note, the lesson in this whole mess is not just a financial one, but is one that involves marketing too. As much as its about a financial bailout, its also about selling that bailout to the ones that matter. The average man on the street.
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