Yes, it does take a while to do something useful... to build something. Look how quickly President Obama has knocked it down.
What did he knock down? You truly believe the economic downturn/recession started in January 2009? You truly think the recession was brought on by the Obama Administration?
What has been knocked down solely by this administration?
The entire government is working perfectly together. Explain to me what they can't do to our country.
1. Define perfectly, please.
2. Who is they?
3. The President does not have untapped power to do whatever he wants. As I'm sure you're aware, there are very simple checks and balances on his powers as President. There are a number of things the President can't do. It would take a year to type them out here; go read the Constitution if you want a list of what the President can do. Anything that the President/Executive Branch has the power to do is written in the Constitution; if it's not in the Constitution then it cannot be carried out legally by the Executive Branch.
The collapse of a superpower with economic influence on the entire world... That's a global disaster. Thankfully, it's taken about a year for it to work.
Again, if you really think the downturn and recession we've been experiencing started in January you should take another glance at the facts.
We've had dozens and dozens of recessions. They're not rare. They're part of the capitalist economic system. And not a one, in history, has been caused by a single individual in a position of power.
Government debt is a bad thing. China, and other nations, want their money back. We can't just keep borrowing forever. Now, with consumer debt so high, the government doesn't have an easy way to get out of debt, since taxing us isn't very effective, and that debt turns to inflation, meaning our money is worth less to other nations, so we need to pay them more dollars. Explain.
I didn't say it wasn't a bad thing, I said it wasn't
the problem. As in, government debt is not the reason the global economy went down the hole. That said, there's no real logic in talking about the state of the economy then throwing in how the government spends/borrows too much. In reality they're not too related.
For example, currently the national debt is 66% of GDP. At the end of WWII it was 120% of GDP. It remained at/above 60% of GDP throughout the 1950s and 60s. I think we can agree that the 50s were quite a prosperous time for the US economy, which in turn led to the even more economically prosperous 60s. Yet our debt relative to GDP was quite similar to what it is currently.
As of January 2009, 31% of the US federal debt is owned by the US private sector (firms and citizens). 41% of the US federal debt is owned by...
the US government. 29% is owned by foreign governments (with China gradually purchasing less US debt and Japan gradually purchasing more US debt). It's not as if that gigantic number we see labeled "US Federal Debt" is all owed foreign countries; only a fraction is and it would hurt them to immediately pull out of these investments. The situation of US debt is not nearly as grave as it is portrayed by the media.
There are numerous ways the US can cut down its debt by "creating" money, somewhat related to how banks "create" money. Selling bonds, changing the reserves ratio, taxing, fractional-reserve banking, the multiplier effect, etc. *It should be noted that when one says the government creates money, it doesn't mean somebody is sitting at a printing press shooting out dollar bills.*
It's hard to take "alarm cries" of inflation seriously given the past year or so. Everybody was screaming about how much inflation there would be if the stimulus plan was passed. And yet there is NONE.
Let's assume there is, however, in the near future (some are calling for it in late 09, early 2010, but we'll see). With inflation, the value of our dollar decreases. Depending on how much this occurs, it's a good or a bad thing.
In simple terms, if there is a "little" inflation, it prompts people to invest more rather than keep their money "in their mattress." This in turn creates more money for the banks, in turn allowing them to make more loans. If more loans are made, more people are purchasing homes, starting businesses, buying cars, etc. In addition, if our dollar is worth less, more US goods will be purchased abroad, tourists would make the US their destination, and so on.
If "a lot" of inflation occurs, it pushes people away out of economy-driving investments and into inflation-proofing investments (gold, collectibles, etc). For instance, if you knew inflation was going to be 12% and you were getting 10% on your investment, you might pull your money and buy gold (which does nothing for the economy).
Of course, everything is relative. One might argue that inflation reduces the value of savings; the other side of this says that it depends on the inflation rate vs the interest rate. If the interest rate is higher than inflation, the real value of savings isn't effected. One might argue that inflation makes everything more expensive and harder to afford; the other side says this is the case only if nominal wages do not keep up with the rate of inflation. So on and so forth. It's not black and white. Everything has to be taken at a relative standpoint.