An American Style of Dilemma?

Capitalism (liberalism) Vs Socialism

Fiscal Policy rifts have destabilized the Democratic Party for decades. But Obama is better situated to sell reform to his party’s skeptical base than any other President in the last 40 years – say compared to Clinton or Jimmy Carter since John F. Kennedy.

Obama can ill afford to rely only on his own party’s majorities but will have to build a genuine coalition of law-makers from both parties if he is to change the nation’s fiscal trajectory. A growing faction among the Democrats feels that if Washington is not serious now about scaling back entitlements and other government spending, then fiscal ruin might be just a decade away.

Government debt is mounting and likely to exceed 90 per cent of G.D.P by 2020 as feared by the Congressional Budget Office. A minority of Congressional Democrats are already objecting to proposals supported by most of the party for billions more dollars in deficit spending this year on unemployment benefits and state-aid, as a way of trying to avert a double-dip recession(June, 2010).