#25, economic realities will constrain him even if his real underlying ideology leans toward socialism (if that is in any way true - I mean, what exactly does the man really believe?).
If he is a centrist and a pragmatist, which he may well be, then the question is how hard the Congress will try and push him to the left, and equally, how that agenda will be constrained by economic realities.
The question that President-elect Obama has to be asking himself now is going to be very similar to the kinds of questions bankruptcy judges have to assess - as they manage recovery specialists and trustees. "IF" Obama is really smart, he'll take the political lumps that come with doing NOTHING more on the economic front and even slowing the insane recovery spending - think of Secretary Andrew Mellon’s recommendations in 29 that were not followed, and all the spending and actions FDR took - which deepened the depression and extended it.
Let the markets find the real bottom. Balance the budget and keep it balanced. I lived through this once and we nearly starved. However bad you think it was in 29-32, it was much much worse from 33-37 and we didn't see any growth until after 48. If Obama listens to history, he'll read every word written by Mellon. I believe he will. I believe he is smart enough and courageous enough to do that.
|