3.Unnecessary Tax Cuts During Obama Administration
It has been said numerous times, to the point that it became the rally cry for the Democratic party, that Obama took office during possibly the worst financial panic dating back to the Great Depression. When the Stock Market completely crashed right after his inauguration, it was clear the country as a whole expected the worst was yet to come. Although the economy did make a partial recovery, President Obama and his administration made mistakes that will threaten long-term prosperity. Although the government needs revenue, balancing the budget by cutting taxes only works if spending is high. His tax cut for bonus depreciation doubled during his administration, despite it being a sticking point on which he criticized previous President Bush. In 2011, Obama passed cuts that allowed companies to deduct the full value of new assets, even though the assets were going to be purchased anyway to conduct normal business. The tax revenue was completely lost without any investment. In doubling tax incentives in late 2010, the change became retroactive to September, basically a huge gift for those investors who thought the deal was already done.
4.Thirties Roosevelt Recession
Franklin Roosevelt made perhaps one of the worst economic mistakes in 1937, a decision that would affect Americans for years to come. He basically started a recession that goes by his name, by prematurely trying to balance a budget believing full recovery after the Great Depression was close at hand. He assumed that inflation was going to replace unemployment as the biggest threat to the United States economy. During this time, Franklin Roosevelt began tightening credit and collecting Social Security taxes, a combination that reduced the country’s purchasing power. What resulted is known as the Roosevelt Recession on 1937-1938, and caused an abrupt stoppage of the economy’s recovery. Today, it is still considered by many to be the single biggest recession in our country’s history. Soon after, FDR turned to Keynesian policies that he previously ignored, but never was able to bring about that robust recovery. His New Deal was not adequate enough to recover from the Great Depression, and it was not until World War II that the United States economy was restored to full health.