US Economic Analysis: Barack Obama’s Stimulus Package Making Same Mistakes as Franklin Roosevelt’s
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A recent US economic analysis by members of Republican Party has shown that a new financial stimulus package proposed by Barack Obama is making same mistakes as had been made by Franklin Roosevelt.
IN-DEPTH: US economy it has been revealed that this fiscal stimulus scheme would be detrimental for its economy. It looks to increase governmental expenditures and deficits and thus is reiterating same mistakes that deepened impact of Great Depression.
A recent US economic analysis by members of Republican Party has shown that a new financial stimulus package proposed by Barack Obama is making same mistakes as had been made by Franklin Roosevelt.
IN-DEPTH: US economy it has been revealed that this fiscal stimulus scheme would be detrimental for its economy. It looks to increase governmental expenditures and deficits and thus is reiterating same mistakes that deepened impact of Great Depression.
Recent economic analysis in US has revealed that basis of National Industry Recovery Act was weak and thus it was not exactly able to achieve what it had set out to do. This act also had a role to play in delaying economic recovery of USA at that point of time.
Fresh studies and economic analysis of US have shown that consumers in that country are spending less. New reports reveal that in December 2008 consumer expenditures have gone down at a rate of 1 percent.
This has been sixth month on a trot that this has happened. Economic analysis at US has indicated that this is a worrying trend as one way with which an economy comes out of troubled waters is through increased consumer expenditure. If levels of consumer expenditure keep going down at present rate then it would be hard for US economy to revive itself.
In 2008 levels of consumer expenditure had gone up by 3.6 percent. This was lowest percentage increase since 1961. More US economic analysis has revealed that increase in savings would be detrimental for US stock market. This in turn would affect major companies and by extension, US economy.
US economic analysis, conducted in recent times, has also revealed that if this savings spree continues then it would kick off deflation that would be a further dent to US economy. This is confirmed by Standard & Poor’s 500 index that has been on a downward spiral since initial part of 2009. This index has not gone up in spite of several stimuli. Further US economic analysis also reveals that financial organizations dealing in loans and savings products have been hugely benefited by this saving trend among Americans.
