What advice should be given to President Barack Obama about the current recession?What caused the recession? What are some solutions?
The problem with this issue is that there are many voices who can point a finger in one direction or another, but there is little agreement on how to improve this situation.
I think we can all accurately conclude that corruption in a variety of formats has occured in our mortgage and banking industries. There is also corruption in government... in any and the most perfect government. Although I would like to believe that those folks take their jobs and positions very seriously, they are only human dealing with a highly complex society. So when things get out of control, what do you do?
I would recommend he:
- take in both points of view (Dem and Rep) on every issue at least for consideration as this honors the American people he serves
- make recovery top priority
- limit government spending (that the people aren't further taxed)
- provide tax benefits to hiring businesses
- consider a tax holiday so folks can get caught up in their bills.
- tighten the belt of the congress and house as well as his own. They all spend money on their lifestyles on our dime.
- provide tax breaks for companies developing energy in our country that provides jobs here and lowers our costs for energy.
Again, opinion, but he should look at what happened during President Hoover's administration, during the Great Depression, and how doing too little, too late, doomed us to a decade of economic depression. He moved quickly to stabilize the banking system, to stimulate the housing and construction industries, and he's investing in infrastructure - all good strategies.
If I had to give him more advice, I would say he need to follow FDR's reform path from the New Deal, and apply some common sense regulations to banking, finance and the insurance industries, so that it will be more difficult for them to get us into an economic crisis in the future. Irresponsible lending and high risk investing were not the only cause of the recession, but they were a major one, as is the current health care cost crisis.
One of the major problems is that no one knows for sure what caused the recession so there are very different prescriptions for how to fix it.
On the one hand, the immediate cause is somewhat clear. The recession was caused by the housing bubble and by all these investment houses having a lot of money wrapped up in bad mortgages and in securities made from those bad mortgages.
But what caused this to happen? Was it too much government regulation? Was it not enough regulation? Both arguments have been made and we cannot know for sure which is right.
Even the experts can't agree on this. I guarantee there is no one on this site who actually knows. They may think they do, but they don't really. So any advice to Obama is just guessing.