The problem I see with Obama is that it is true that he inherited a bad economic situation but the cure he applied did not heal the economy properly and introduced a bad side effect that is effectively killing the patient!
It is true the recession started in June 2007 and ended officially in June of 2009. 6 months after Obama took office. However the job creation remained anemic, the growth rate was under 2%.... WHAT HAPPENED? Every other time we would always come roaring back from previous recessions?
What happened was that as the disease was cured (recession) the cure backfired and caused side effects which are keeping our economy under wraps even today.
And that side effect is called by economists the "debt implosion cycle" which happens every fifty or sixty years. 1760, 1840's, 1890's, 1930's, and when this happens the debt levels rise to such a point both public and private througout the world that investors and consumers panic and rush for the exits.
FDR said it best in his inaugural when he said the only thing we have to "fear is fear itself".
This fear becomes so palpable that no matter how much money you pump out there people aren't going to spend it.
So consumers have paid down their credit card bills and personal debt by as much as 1 trillion dollars since Obama took office but its terrible for the economy because they haven't spent much in a way that would stimulate the economy. Businesses have done the same thing to the tune that they have 2 Trillion on hand at the moment sitting in banks earning no interest.
Collectively they are so fearful about this economy that they would rather squirrel it away than invest it back into this economy or their own businesses to grow them.This is the outcome of QE1, QE2, QEx. This leaves us with a Catch 22 where no one has the collateral to borrow this money and the banks deem things to risky to lend.
So basically even though Obama lent out all this money to stop the loss of faith in the system the fear still crept in destroying faith in the economic system.
When Obama saw this he borrowed another trillion and another and another! All the way to 6 trillion dollars in debt. The spending providing a temporary boost followed by the same end reaction.
From George Washington til Obama took office we borrowed 10 Trillion, since Obama we now borrowed 6 Trillion more than that. This pattern has repeated across the globe by many countries to such an extent that the entire world is living in supreme fear these days.
And here is the crux of the matter Obama will continue to apply this remedy if he is allowed to continue.
It's a little bit like in the Middle Ages when a guy was dying from some disease and they would try and heal him through bloodletting and when that didn't work they would continue the treatment until the patient was down 100% blood which can prove fatal 9 times out of 10.
Now I belive that Romney will stop this. We just need to STOP! Cut the spending, cut the borrowing, cut the deficit, give the economy a little room to breathe and that will allow people to realize, "We're Ok", and when they realize this they will wade back into the economy bringing everyone, including the EURO zone and the rest of the world back from the brink.
This is where Romney's tax cut plan is simply brilliant! It's not really a tax cut in that it will maintain the same amount of tax receivables into the federal government by cutting out many tax deductions. Why will that be effective? Because when you wake up every morning you know you are going to work and the feds will take 1/3 of everyhing you make, under Romney they will take 1/4.
You won't keep 2/3 you will keep 3/4!
And this will give everyone an incentive to work and to earn and to invest. He'll cut the capital gains tax to make it easier to make money on your investments. When this happens money is going to come flooding in to the Treasury from the increased productivity of the average American worker.