Obama’s Economic Challenge

Millions of people are gathering in the US capital to see Barack Obama sworn in as America’s 44th president, and its first African-American leader. But the new president faces serious challenges. America is gripped by uncertainty as the economy faces its worst crisis in decades.

The new President also inherits wars in Iraq and Afghanistan, and the conflict in Gaza. Plus he must also deliver on his election pledge to re-invent the healthcare industry into something that cares for America’s poor, not just it’s rich.

His top priority however will be stabilising the economy. Barack Obama has already persuaded Congress to give him authority to spend the second half of a $700 billion bailout package and financial institutions will come under pressure to help homeowners and release money for investment.
His challenge is to get credit flowing again and prevent the banks sitting on any money they have received from taxpayers. The new President is also close to getting a deal on an economic recovery plan worth upwards of $825 billion, including a massive public works programmes and tax cuts that are intended to stimulate spending. All of this will be achieved on more borrowed money.

Barack Obama has said that “given the crisis that we’re in and the hardships that so many people are going through, we can’t allow any idle hands,” which suggests that he will not be looking at Britain’s benefit system for inspiration any time soon. Indeed Obama will need every American working hard during his presidential term just to service the nations $11 trillion debt that he is now responsible for.

So whilst it may seem like one inauguration ball after another tonight, it will be a busy first morning in office tomorrow for the new American President with many sleepless nights to come.

So best of British luck to you President Barack Obama.