ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Obama Initiatives Avoided Another Great Depression

Updated on June 27, 2014

The Stage Was Set

During the presidential campaign of 2008 the country was given startling news. Wall Street was in serious trouble with several large lending institutions and the stock market on the verge of collapse. It was reported that the financial system was in such grave condition that if an immediate bailout was not initiated the entire financial structure of the nation and the world economy were at risk.

Immediately President George W. Bush authorized the secretary of the treasury Henry Paulson to develop a plan to rescue the financial district.

After consulting with Federal Reserve Chairman Ben Bernanke, Secretary Paulson presented President Bush and congress with a one page proposal that essentially gave the treasury department carte blanch to allocate to Wall Street whatever amount the department felt was needed to save the financial system from implosion.

After some wrangling over the lack of regulation and supervision contained in the scant document a more detailed version called the Emergency Economic Stabilization Act was passed by congress which bore out of it the Troubled Asset Relief Program (TARP).

TARP, as it was later dubbed, provided taxpayer funds to struggling institutions to keep them solvent with the stipulation that they would pay back the "loan".

The bailout temporarily staved off an immediate financial catastrophe but there was still more work to be done.


A New Regime

When Barack Obama assumed the office of president in January of 2009 he faced a financial situation that rivaled that of conditions present before the stock market crash of 1929. Stocks prices were plummeting, banks were being depleted of cash holdings and the overall economy was grinding to a halt.

The economy needed to be stimulated or the nation faced what many experts feared would be another great depression.

The nation was in a panic.

After consulting with his economic advisers the newly elected president came up with a bold plan to jumpstart the economy and save it from impending doom.

President Obama's plan had two major objectives: 1) to save and create jobs 2) to provide temporary relief to those most impacted by the financial crisis with specific attention to social security recipients, unemployed workers and those who worked in the auto industry.

Although the results weren't immediately seen over time the economy began to show signs of recovery.

The auto industry picked up, housing began to slowly come back to life and retail spending increased which was a sure sign that consumers felt confident in the economy again.

By all accounts the stimulus had worked and the financial disaster had been avoided.


Do You Think America Was On The Verge Of Another Depression?

See results

Give Credit Where Credit Is Due

Without question President Obama saved the nation and the world from certain doom. America's financial institutions were in economic freefall and no one knew where the bottom was.

Although many Americans did not agree with the measures taken no one can deny to some extent they worked.

The auto industry is back in a leadership position, the housing market is growing again, the stock market has recorded all-time high yields and the overall economy is moving forward again.

Surely all of these positive accomplishments are due in some part to President Obama's actions and for this he should receive due credit.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Howard Schneider 

      4 years ago from Parsippany, New Jersey

      I absolutely agree that President Obama did everything he could to keep us out of a Depression and out of the Recession. He could have done more without the Republican obstructionism. The TARP program started during the Bush administration was also vital to stemming the financial meltdown. The country would have gone into a Depression before Obama took office without it. Great Hub, Tony.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)