Economic crisis is still a big challenge for Obama. Though it is gifted him by Bush, but he can’t be exonerated completely. He got chance to remove this problem. But if it is persisting, does it mean he is under performing on this front? To answer this is not easy. But one excuse he has. He got less time in view of its gravity. This is second worst economic crisis in American history.
Country is going to default. If it will happen, country’s credit rating will go down. Going credit down will bring so many problems and develop many complications. Deadlock of not raising the debt ceiling has very valid political reasons. Increasing tax or imposing new tax on wealthy is not suiting the opposition. It will displease republican vote bank. While not raising limit and cutting fund will annoyed democrats’ voters.
The political economy is the main issue for both the parties. To find a solution of this problem, we need to fix the responsibility for this. Republican Bush depleted the exchequer and brought the country in deep debt. His mismanagement and wrong political decisions ruined the country’s fiscal structure. This developed a bad political product in the form of economic crisis. This was one main reason among others Republican Party’s defeat in 2008 election.
Obama inherited shattered fiscal status. He is trying to solve this, but still not eradicated. He can’t throw complete blame to Bush now. He has to share it his part. He can say he need more time, but this is blot on his governance capability on economic front. Opposition can charge him as non efficient on this issue.
This deadlock has brought down the image of the country worldwide. Any further delay in resolving the issue will cause irreparable image loss. Both republicans and democrats will not like this situation for political gains or losses. Politics is not above the nation in a condition when both are responsible for this. Thus, they should understand their contribution to this menace and act hurriedly in nation interest.
Obama is one of the most intelligent modern political actor. So far he is not in any controversy and no corruption issue has been raised against him. Killing Bin Laden, number one enemy of the country, recovered his sagged image. Now this issue is a litmus test for him. Seeing his record, we hope, he will sort it out without much loss. To see his acumen see my blog;
Link: http://heeralalpcs.blogspot.com/2011/07/americas-new-found-love-for-india.html
http://timesofindia.indiatimes.com/world/us/US-debt-crisis-Senate-House-still-at-odds-as-default-clock-ticks/articleshow/9423494.cms
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