Obama's Economic Plan

The Times: Reports on the Obama Plan to prevent another second Great Depression in the United States, majority spending on public areas and tax cuts.. The problem with the plan is two fold, it wont work fast enough, all the spending on the roads and schools and new Energy Technology etc will take time, while that is going on the recession could become a Depression. Also it it needs stating that it was not Roosevelt's New Deal that bought the USA out of the Great Depression it was World War Two, in fact it was the spending of the UK that bankrupted the Empire but allowed the USA to become our successor on the World Stage. Also the idea that tax cuts will be spent by the poor is missing the point, spending will occur on house hold items, food, medical items but what about non important items, the service industry survives on those extra dollars being spent, if the poor don't spend and the rich don't get any tax cuts who is going to buy that new Car or that faster broadband. Obama just might be a one term President.

Also the President shows some naivety if he thinks the Congress wont place its own interests when it comes to spending money, Obama stated the following today in a speech, " That also means an economic recovery plan that is free from earmarks and pet projects. " What ever Obama wants to spend you have to add a few billions from the House and Senate, that it how the systems works, the Democrats will support Obama but they have run for re-election in two and six years time, thus they have to bring back dollars to their home turf. Obama might find his best friend in the US Senate is John McCain, McCain has opposed the idea for years that the Congress should add their own projects to government spending. Lets hope Obama has the right team in the White House, in 1981 Reagan had the best team since LBJ, he got his tax cuts and defence spending through a Democrats Congress also deep cuts in non Defence projects. Obama has to use the phone and go up to the Congress and twist some arms, but he should recall he has eight years to solve this problem, FDR had four terms. After two years if Obama's polls are low the Congress will run against him if they have to get re-elected. Lets hope Obama when it comes to dealing with Congress is another LBJ and Ronald Reagan.