Barack Obama and the Bush Tax Cuts Harvard Case Solution & Analysis

How severe are the problems facing President Obama in January 2009?

President Barrack Obama will have to address some major challenges or problems in his initial phase after taking hold of the Presidential seat. The first major challenge is the meltdown of the financial sector which is under real threat and the deficits are increasing. The major financial institutions are under real threat and have a major defect under their belt to pay. On the other hand, he also has to deal with a costly bailout that is also on the verge and most important to resolve the issues that are occurring due to the massive government deficits.

The current task or the major objective that is upfront for President Barack Obama is to decide the extent of the fiscal stimulus which is required by his team to revive the economy or to revitalize the economy that is on the verge of decline. However, achieving this objective seems quite difficult for him as the above stated issues are the prime barriers that will occur. Besides that, resolving those issues is also challenging because there are some important related issues that are also present and can be causing significant hindrance in his route to achieve the desired objective.

Barack Obama and the Bush Tax Cuts Case Solution

These issues are highly significant and important to address as without addressing these issues, Obama will not be able to achieve the objective of revitalizing the economy leveraging the fiscal policy. The economic crisis that the world has recently suffered is ongoing is a major challenge and tackling recession will be a difficult task. Secondly, the tax rates under the Bush tax cuts are almost zero, which is another barrier and needs to be resolved immediately to proceed ahead. On the other hand, unemployment is also a major issue that will cause hindrance and will be added to the complexity of the issues being faced by Barack Obama.................................

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