With tax increases possibly on the way, and more regulation already here, there is plenty of reason to question, 'how has "Change" worked so far?" There are lessons on how the "bold action" (remember that phrase) of the Administration would result.
"Right now we don't have inflation, yet. But like in the 70's, we are trying to to address unemployment by government (Federal) spending, and as in the Ford and Carter administration 'Big Government' action will largely have little positive effect (the "little effect" is from the State Department's own web-site.) We will however, have a another parallel with the Ford/Carter malaise in that we (could) at some time have spiking interest rates to attempt to combat (potential) inflation, which will be difficult to avoid with Obama's "Unprecedented Action" i.e 800 billion dollars. The potential interest rate spike will panic the stock market and we will end up where we started which is climbing unemployment."
So interest rates are still low. However unemployment has risen about 2% since this article was posted. There is another lesson of what happens when interest rates are low and an economy still flounders.
"What about Japan's lesson to us in history? Google CEO Eric Schmidt was on the Sunday talk show circuit (February of '09) squawking about the need for yet more stimulus saying that the lesson of Japan's lost decade, was that it took too long for the money to be spent. One might ask, however, did " borrow, borrow, borrow", really help the Japanese economy? There was plenty of "Unprecedented Action." The equivalent of billions of dollars were spent to 're-stimulate' banking as well as their economy at large, but even after corporate and banking bail-outs, banks collapsed in spectacular fashion. To this day many corporate firms are saddled with massive debt. To sweeten the pot a bit more, Japan has only four banks left. Now that Japan is on the verge of another economic crises they are ill-equipped to take more "Unprecedented Action" when after the last series of "bold actions" left them with zero percent interest and money still difficult to borrow. To top off the whole picture as a nation, they are still heavily indebted to foreign banks."
The U.S. has not had a lost decade like Japan, because we are only a year and a half into this attempt at creating a new bubble.
To be honest, I wish that the attempts had worked, I would be happy to give credit to The President, as we all are more prosperous and happy. The problem is that 'borrow and inflate' doesn't work, hasn't worked and will never work.
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