Let’s move into the realm of the hypothetical. Let’s say that Obama gets elected for President. Not only does he get one of the most powerful jobs on the face of the planet, but he also receives a damaged economy, high unemployment rates, states on the verge of bankruptcy and a stalled mortgage market. Frankly, I’m surprised that anybody really wants that job.
Nevertheless, the 850 billion dollar (700 + 150 in sweeteners) bailout package was passed. Within the next few weeks the government will be nursing failing banks and Wall Street back to health with money that will need to be repaid by tax payers. It will be the job of the next President (Obama or McCain) to assist in moving the money around to cover these debts. I believe that it is inevitable that taxes will be raised in order to make up the difference.
Now, in this hypothetical situation, we have Obama (a Democrat) in office, raising taxes. Yet, I have very little doubt that the Republicans will be fighting tooth and nail against tax increases. It’s in their blood. Not only that, but they will be blaming the Democrats for the financial mess that the previous Republican administration has left. The next president will be taking the blame and be responsible for this horrendous mess, and I bet Obama will take much more guff from politicians and pundits than McCain ever would.
Either way, the next President will have some tough decisions to make, and I don’t envy that job one bit.