President Obama’s last year predictions about economic revival have proved wrong. Extending the tax cuts, the US president has tried to compensate for the mistakes, the democrats did last time. This is also a step to appease the Republicans in exchange of approval for unemployment benefits, reduction in payroll and other taxes.
The White House has taken a complete ‘U’ turn in its policies. The Health care Bill and financial laws have lost their glories after the hollow noise of economic recovery and the US administration has tuned back to realistic goals now.
However, all the Democrats have not welcomed these moves very warmly. Seeing positive forecasts for economic growth and jobs, the Democrats have no option but to accept the transformation of economic policies.
The midterm poll victory for Republicans gave a clear message to the Obama administration about people’s disappointment with the government. Had Obama changed his strategies on economy before the elections, the result would have been less negative for the Democrats. Even the recent changes are not expected to bring much change in the current unemployment level very soon.
What American expected from President Obama was much more than what has been delivered. Cutting employee’s portion in tax has not done much advantage to employees.
The new extension to the tax cuts will definitely help economy but would not benefit the Democrats politically.