Sunday, August 24, 2014

What advice should be given to President Barack Obama about the current recession?What caused the recession? What are some solutions?

Again, opinion, but he should look at what happened during President Hoover's administration, during the Great Depression, and how doing too little, too late, doomed us to a decade of economic depression.  He moved quickly to stabilize the banking system, to stimulate the housing and construction industries, and he's investing in infrastructure - all good strategies.


If I had to give him more advice, I would say he need to follow FDR's reform path from the New Deal, and apply some common sense regulations to banking, finance and the insurance industries, so that it will be more difficult for them to get us into an economic crisis in the future. Irresponsible lending and high risk investing were not the only cause of the recession, but they were a major one, as is the current health care cost crisis.

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