Tuesday, November 25, 2008
Barack Obama and the current financial crisis in the U.S.: He is not a superman
The United States is facing a huge financial crisis these days. This is a serious issue not only in the U.S. but also all around the world since the United States is the most powerful and the leading economic force in the world, and thus affects the foreign currency and trading markets.
The World’s greatest concern today is how the President-elect Barack Obama will tide over the present recession. It was announced that the Obama government will unfold a large-scale market maintenance policy. The basis of Obama’s economy policy is focused on increasing the quality of the life of working class who takes up the majority of American society. The Obama government is planning to reduce tax for the low-income group while raising the tax for the high-income group, and to create millions of new job positions because the unemployment rate is expected to increase in next year.
However, my opinion is that even though the regime is going to be changed very soon, it will not make a noticeable difference in terms of the economy and finance situation of the U.S.. Beside the fact that he is to be the first black president in the history of the United States, what makes him particular is that people expect on him to be a special person who can solve this current crisis. Although he is proposing many new policies in order to overcome this situation, the thing is that he will not be able to make much difference.
This is because the problem going on today will not be solved that simply. According to my research, stagnation of the real estate causes the banks, which lent or invested their money, to fall down. As the banks become fragile, the family buget also becomes weak, and it causes the decrease in consumption. Thus, corporations will collapse because of depression in selling. This credit loss of banks should be revived by giving a huge amount of money to the banks. Therefore, the nation's money will be tied to the banks and the U.S. will suffer extreme depression even more.
My conclusion is that it is impossible to expect Obama to solve the financial crisis in a short-term period. His new policies don't seem to succeed and the class struggle in the U.S. will get more severe. He cannnot make any immediate changes and we should not expect too much on him. He is not a superman.
