I did some reading through the history books. After reading about the past presidents, I wondered what president Obama would mirror his administration after. It is clearly apparent that Barack Obama, will probably inherit the worst times since the great depression. The great depression began with the great crash of 1929. By 1931, unemployment reached 16 percent. By 1933, 89 percent of the stock value had been wiped out, the economy shrunk by one-third, thousands of banks had closed, a third of the money supply was gone, and unemployment  reached 25%.  And believe it or not, in those days, there was no unemployment insurance, no medicare, no medicaid, no social security and no welfare.

FDR's answer was huge federal spending,  new regulations on business and higher taxes. This was like Herbert Hoover before him, only more so. The depression lasted until war orders from our allies boosted the American industry. Before 1940, not once did unemployment fall below 14 percent. In 1939, the then treasury secretary Henry Morgenthau stated, "We are spending more money than we have ever spent before, and it does not work. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration we have just as much unemployment as when we started and an enormous debt, to boot." Politically, the New Deal was a great success, with FDR's landslides in 1932, 1934 and 1936 wiping out the GOP. Yet, economically, the New Deal failed to restore any prosperity.

Now on the other side, Ronald Reagan responded to the economic crisis of 1980, the worst since the depression. that came from the Jimmy Carter era where interest rates had reached 21 percent and inflation 13 percent. Reagan's answer was the tight money policy from the then  Federal Chairman Paul Volcker and across-the-board tax cuts of 25 percent, while at the same time slashing the highest rates from 70 percent to 28 percent. While unemployment hit 10 percent in 1982 and Reagan lost 26 House seats, surprisingly in 1983 the tax cuts kicked in. From there on out, it was boom times until the end of Regan's administration and also having created 20 million new jobs.

Reagan had followed the lead of Warren Harding and Cal Coolidge, who had cut Woodrow Wilson's wartime tax rates of near 70 percent to 25 percent, resulting in The Roaring '20s, which was a time of great prosperity.Reagan modeled JFK's tax cuts of the 1960's that were equally successful. Harding, Coolidge, JFK and Reagan all bet on the private sector as the way to prosperity. They all succeeded. Franklin Roosevelt bet on government. And the New Deal failed. It was World War II that pulled the United States out of the Depression of the 1930s, not the New Deal.

Now we have the financial collapse and economic crisis of 2008, that Obama will inherit, with 40 percent of all stock values wiped out in a year, foreclosures, and unemployment near 7 percent and rising. Obama seems to be brushing aside the Reagan, JFK and Harding-Coolidge models, and instead resurecting the  FDR and the New Deal.

Obama is already staring at a $1.2 trillion dollar deficit for the year ending Sept. 30,  which is about 8 percent of the entire U.S. economy. Obama intends to add a stimulus package of $700 billion to $1 trillion, which is yet another 5 percent to 7 percent of gross domestic product. The result would be a deficit twice as large as Reagan's largest, 6 percent of GDP, which was the largest since World War II.

How will all of this money, our tax dollar be spent? Hundreds of billions will go out in checks of $500 to $1,000 to wage earners and to people who don't even pay taxes. This is much like the George McGovern  program of 1972, where every man, woman and child, was to get a $1,000 check from the U.S. government/taxpayer. Other hundreds of billions will go to state and municipal spending. Other hundreds of billions will go for infrastructure projects. PORK?

As of now, Obama does not intend to raise taxes. Looks like he is going to have to borrow this nearly $2 trillion from foreigners or U.S. taxpayers. If not  the Feds will have to create the money. This will obviously have an impact on the economy.

So exactly where in history, other than World War II, is there proof that such a mass infusion of spending restored prosperity? The government is  taking a historic gamble with the country. If this beast of a stimulus package, plus the trillions in hot money, do not work, and if the two create rampant inflation, rather than real growth, we will then be out of options. And what will follow may truly resemble the 1930s. IMHO

Bumble, except for the title of the thread, that is one great post! You rose above, and then some. Well done.

As to what the new President will or will not be, a lot of that is going to be, and already has been, determined by circumstance.  When FDR came to office, he had a circumstance much worse than this one has reached so far.  There’s a new book out (whose name I cannot recall at the moment) that addresses the laws he got passed during his first 100 days in office. Hope you can find it.

Unlike now, virtually everyone was willing to invest their effort and hope in FDR when he was inaugurated.  One only has to look at Mr. Obama’s detractors here to see that this shall not be the case for him. Frankly, I don’t’ think it’s realistic to ask if he’ll be one or the other, and I don’t believe he’s portrayed himself in either condition.  He is his own man pretty much, and I think he’ll define his own presidency, and that might not be all that bad.  However, given the conditions he’s presented with from the outset, there is no move, no matter how slight, that he can make that others will not find reason to condemn him for – trust that.  Already, here on this board, he’s being held accountable and nearly excoriated for trying to be prepared and have things ready before he takes office.  It won’t get better no matter what he does.

Personally I really don't care who Obama follows, I'd like to see him and his administration figure a way out of the economic mess this country is in, some of which was caused by previous administrations as far back as Jimmy Carter. I'd like to see people go back to work, families not losing their homes, and those who are depending on their savings for their very existence to regain most of the money they've lost. Deep down in my heart I don't believe we can spend our way out of this mess and in the long run we'll be doomed to fail and things could get much worse than they already are.

Reagan inherited the worst economy since the Depression. Interest rates were 28%. He did not plan a trillion dollar bailout, to be wasted by other bureaucrats.  He cut taxes and encourage private sector growth. Obama is no FDR either. FDR had executive experience as Governor and Naval Secretary. We wish the incoming President much success but his horrible cabinet choices, including Richardson, do not inspire great confidence.

Perhaps he'll follow in the footsteps of Lincoln..... I found this comparison on the web.................

http://bigpicture.typepad.com/writing/2008/03/barack-obama-an.html

Quoted Text

1) Obama attended Harvard Law.  Lincoln was self taught and practiced law becoming one of Illinois’ most respected litigators.
2) Obama served in the Illinois Senate from 1997 to 2004.  Lincoln served  four successive terms in the Illinois House of Representatives;
3) Obama lost his 2000 Democratic primary bid to unseat four-term Congressman Bobby Rush.  Lincoln lost the 1858 Illinois Senate race to Stephen Douglas.
4) Obama was seated in the U.S. Senate in 2005 and announced his candidacy for POTUS in 2007.  Lincoln served one term in the 30th Congress form 1847-49;
5) Obama strongly opposed the Iraq War during his campaign for U.S. Senate. Congressman Lincoln opposed the Mexican-American War, which made him very unpopular at home. He demanded from President Polk, “Show me the spot!” – the exact spot where American blood was first shed. The justification of war was that Mexico attacked and killed Americans inside U.S. territory. Lincoln believed the attack took place on Mexican soil. This earned him the nickname “Spotty Lincoln”;
6) Then candidate for the Senate Obama delivered his famous speech at the 2004 Democratic National Convention, which catapulted his national political career. Lincoln gave his “House Divided Speech” in June 1858 upon accepting the Illinois Republican Party’s nomination for the U.S. Senate. This speech  is considered one of his best;
7) Against long odds, Obama challenged Senator Hillary Clinton, a lawyer, from New York and is now the likely nomination. Lincoln challenged Senator William Seward from New York for the Republican Party nomination. Seward, also a lawyer, was widely considered the favorite with his vast governmental “experience” first as Governor and then Senator from New York. Seward became Lincoln's Secretary of State.
Obama is widely recognized for his orator skills and his ability to attract moderate independents and even some Republicans. Party leaders viewed Lincoln as a talented speaker and more moderate than his rivals, William Seward and Samuel Chase.
9) Obama is viewed more likely to win the “Red states” than his rival. Lincoln’s Western origins made him more attractive to the critical Western States – California and Oregon. His more limited “experience” resulted in fewer political enemies and thus a smoother path to winning the General.
10)  The Republican Party is currently fractured and in disarray. Conservatives are unhappy with John McCain. The opposition in Lincoln’s day was fractured by the North/South divide.  The Democrats held two conventions – one in Baltimore and one Richmond -- and nominated two candidates.  The Northern Democrats chose Stephen Douglas and John Breckinridge was the candidate of the Southern Democrats.   Breckenridge carried the South and won 72 electoral votes and Douglas secured only two states, Missouri and New Jersey, totally 12 electoral votes. Lincoln won 180 electoral votes;
11) March 4th proves to be a pivotal day for Obama in which he can secure the Democratic nomination.  On March 4, 1861, Abraham Lincoln was sworn in as the 16th President of the United States.

Obama will be exactly what the American public want him to be...,or, what the think tanks that feed out of the same trough want him to be.....IMHO