Obama’s Greatest Failures in Office

When Barack Obama entered office in the November of 2008, the circumstances were just right for the makings of a popular president whose name would be embellished on the records of history. He had entered during a time period of great economical turmoil, just one year after the real estate market had crashed to an all time low. It was fleeting reminder of the time when Roosevelt and Lincoln were elected in a time an uncertainty and difficulty. Like Roosevelt, Obama managed to capture the attention and support of the American people by promising change – a chance for the American people to turn away from the gloomy and uncertain future that lied ahead. Unfortunately, if Obama intends to be a Roosevelt of the twenty first century, he is straying far from the right track. As the first term of Obama’s presidency draws to a close, it is time to look back and reflect on the three greatest mistakes Obama made – not as president – but rather as the leader of the American people.

1. The bailout plan

                When the economic stimulus package was put forth in 2009, it was a gamble on the part of the Obama administration, and the whole USA government in general. The real estate bubble burst of 2007 left the federal government with few options. One course of action would have been to simply allow the economy recover of its own, but this would have resulted in economic instability for a substantial time period, making it unpopular with the public. The Obama administration decided to intervene and inject nearly one trillion dollars into the economy.

                Unfortunately, Obama had failed to take into account that what needed a stimulus was not the economy, but rather the faith of Americans in it. The bailout money’s purpose was to maintain a cash flow that would allow major companies to continue doing business and thus propel them over the loses suffered in the economic recession. Banks and other investment systems, which had invested heavily into the mortgage securities, had found themselves short on cash to lend, and without borrowed money, the economy would not be able to sustain itself at pre 2007 levels. However, after the economic crash, a sudden realization was sparked in the public – the credit system, once seen as a fail proof way to securing liquidity, was an unstable structure that could collapse at any moment. The revelation caused many Americans to make the decision to turn their backs to the lifestyle of borrowing that many had pursued. Even the instability of the economy made banks themselves hesitant to lend.