Many might remember what happened to former president Bill Clinton who when first elected to office was in a similar situation as Obama. Clinton had to head-butt frequently with the Democrat-controlled Congress. The inefficacy probably contributed to the Democrats losing control of the legislature just two years later.
One sticking point that has arisen over Obama's stimulus plan concerns the large tax breaks included in the package. Many Democrats think that infrastructure spending would be a better idea than tax breaks. There is a strong possiblity that tax breaks will be stored away by Americans looking at hard times. That's not a bad thing really, since Americans do no need to save more, but it will not "stimulate" the economy i.e. increase spending.
The problem is that the vast majority of Americans have too little savings or negative savings, while the super-rich are hoarding money in dysfunctional derivative accounts. While the government should not meltdown the derivative market, they need a "soft landing" approach to recycle the capital in these funds.
Telegraph.co.uk
Obama bumps up against egos in Congress
Los Angeles Times, CA -
BACK THEN: During the campaign, Barack Obama’s team was tightly run and exercised complete control. His advisors are learning that approach doesn’t work in ...
Video: Will Obama's Inaugural Address Become Memorable? Simulcast of President Barack Obama's Inauguration
What the H? President-elect Barack Obama's middle name shortened ...
No comments:
Post a Comment