The Injustice of it All

President elect Obama will get the credit for "fixing" the economy -- at least that's what people think and what will likely be the response of the media when it turns around -- and it WILL turn around. (see the poll here)

There are many who have compared the current economic crisis to that of the Great Depression. There are admittedly many parallels, but there is one BIG difference. It took the federal government several years before they kicked in gear the spending stimulus necessary to re-start the economic engine of the country during the Great Depression. President Bush, on his watch, responded immediately with a huge stimulus package. The problem with any economic stimulus package is the delay between implementation and the harvest of results. I suspect that toward the end of 2009 we will begin to see a turnaround and by the end of 2010, we will be running at full steam again -- NOT because of the miraculous hand of Obama, but because of the quick action of the Bush administration.

I do have some concern about the timing of the turnaround. That is because policies enacted by Obama in his first months could easily delay the return of a healthy economy. It will depend largely on his approach to taxation and the willingness of Congress to follow him. I hope the GOP is prepared and willing to stand firmly against tax increases.