Editorial: Obama’s post-election economic challenges

President Barack Obama won the re-election last Tuesday night, defeating former Massachusetts Governor Mitt Romney despite a weak economy. However, some political science experts predicted: the worse is yet to come.

President Barack Obama won the re-election last Tuesday night, defeating former Massachusetts Governor Mitt Romney despite a weak economy. However, some political science experts predicted: the worse is yet to come.

Even though the U.S. economy has started rejuvenating gradually, the situation is still far from optimistic. Consumer purchasing power and the tendency to invest has been diminishing thus corporations are still skeptical about the future economic growth. The Obama administration has pushed a series of economic policies to create jobs and recover from deep financial crisis, but the effect is not influential.

Since the global recession from 2006, the inner structure of the U.S. economy has deteriorated significantly. This urged the government to increase national debt and also has limited long-term economic growth.

On the other hand, Bush-era tax cuts will soon end this year, but Obama has not rendered any new proposals for the next step. This seems to help reduce the government deficit and deal with government debt relief, yet people will be facing tax increases, causing a decrease in customer consumption.

Moreover, there is a huge discrepancy between the Democratic party and the Republican party. Since the Republicans retain their majority in House and the Democrats still lead Senate, it seems difficult for the two parties to reach a consensus in the short term. This may affect strength of economic recovery.

At the election night party, Obama promised that he would lead the U.S. to the right direction and bring a bright future to Americans.

“We want our children to live in an America that isn’t burdened by debt, that isn’t weakened by inequality, that isn’t threatened by the destructive power of a warming planet,” Obama said in the victory speech.

However, in view of the current economic situation, it seems that those dreams created by our president may be hard to be fulfilled.


Phoebe Fan graduated from the University of Washington with a Master’s degree in Cultural Studies. She is interested in any cultural issues from ancient Chinese literature to contemporary Western fashion.

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