US Economy Bumpy Road to Recovery

Saying that President Obama administration has its hands full when it comes to the economy healing is almost an understatement. This cannot be perceived as a secret, it’s obvious the American economy is under siege since the bush administration took office. The Obama white house started shaking up the whole system with the so called stimulus package featuring bailout money.But the tunnel to the promise land is not the easy one, whole bench of sacrifices is needed and as it turned out, not everybody is willing to get on the bandwagon or some choose to drag their feet for now. The first obstacle President Obama has to face, is on the political front ,inside his own party and most importantly the other side of the aisle, meaning the republican party.In most cases and without doubt, the new president elected relies on the party support from the house and the senate. Using the momentum of the general election, Barack obama was able to rally the Democratic Party around his economic agenda, despite some objections from party members fearing that the Nation budget deficit would increase. The fierce opposition, indeed and as expected, came from Republicans. They argue that the stimulus package would cripple the economy, lead to higher tax for businesses and American household. Last but not the least, the government should have, if any ,a limited role when it comes to economy .

Basically they stood by capitalism economic orthodoxy as effective means to stop the bleeding and jump start the economy. The flip side of this argument, according to some watch dog experts, in lean times, the government has to step in and provide the boost needed. Besides the political hurdles, the Obama white house run into what is known as technical or specifics obstacles from the big economic players such as the auto , bank ,mortgage industry and the credit card companies. With the request of bailout money, came the requirement to meet in order to benefit from government rescue.

The Detroit big three (GMC, Ford, Chrysler) have been asked to come up with a new plan allowing them to keep up with their Asian counterpart (Honda, Toyota. Hyundai) Long before the economy downturn, some of these companies had put out the hybrid vehicle, reportedly gas friendly, which was a first good step to start, but insufficient to dig them out of the hole and regain their leadership here in the Nation and on the world stage.Meantime, banks and credit card company are supposed to relax the condition of credit accessibility after receiving the tax payers money. But so far, the credit market has been slow to take off, reason being the lack of trust between banks and toward consumers most of whom are unable to repay their loan. The fate of mortgage business is no different. At this juncture,fear and lack of trust are fueling the drag on the economy.The good news is ,the Obama administration, despite all these roadblocks, is rightly upbeat and does not shy away from the daunting task ahead.