Wrong, FDR backed of and tried to bring the budget into balance in 1937 due to public outcry.
The economy tanked and he had to reup the new deal programs.
then they economy began recovering again.
Its history.
Now where in history is an example of no government invention doing what you claim it will?
Was there a debate within the FDR administation on whether to have a moderate Tax increase or go with th largest Tax Increase in History?
There are some today who want to sun set all of the Bush Tax Cuts, some who only want to penalize the rich and some who want to extend all of the tax cuts for anywhere from one year to pemanent.
"No government intervention" is not an option in this economy. It is only a matter of how big the intevention will be and form it will take.
Since every decision he has made so far has made things worse, I'd be tempted to find out what the Big 0 wants to do and then do the opposite. Whatever that is, it couldnt be worse than than recent history.
The American economy depends on vigorous middle class consumption.
Said consumption, during the postwar years, was built on something solid: manufacturing jobs. [Study the great postwar suburban expansion. The economic activity was beyond belief. The baby boom generation was entering their peak earning and spending years. It was truly an economic golden era. Problem is: the fundamentals which delivered the prosperity went away, partly because of historical conditions and partly to make a smaller group of Americans extremely wealthy. Read on]
Starting in the 70s, the U.S. began to lose the golden goose: solid manufacturing jobs [Japan and Germany re-industrialized, thus eroding American manufacturing dominance]. With less money coming in, Big Money sent Reagan to Washington to restore corporate profits to the levels achieved in the 50s and 60s. Thus began his war on labor. This was a comprehensive strategy designed to relieve corporations of their government imposed obligation to the middle class. Therefore, Reagan embarked on a war against unions, as well as allowing corporations to shop the globe for cheaper labor (-Reagan drew up the blueprints for NAFTA; Bush added to it, and Clinton drove it home.)
The point was to create a global system where capital could flow to the cheapest resources and labor markets. The Pentagon would "base" the globe in order to protect vital supply chains in unstable regions, the middle east being the most well known. Go into any Walmart and read where the products are made. You will see the fruits of the global economy
AKA cheap 3rd world labor
AKA goodbye American middle class).
So ... what did America do when it lost its solid job base AKA the engine of middle class consumption. It turned to credit and bubbles. Starting with Reagan, the middle class was increasingly sustained by reckless borrowing. The credit industrial complex was born. The circulation of Master Cards and Visas exploded. Here we also see the growth of casino capitalism and speculative finance: profit by fiat, which became necessary because American no longer made anything. [What choice did Reagan have? When the money didn't trickle down into real jobs and solid investments, he had to sustain the economy with something. No politician can get elected without promising the middle class the world on a string]
Of course, you know how the story ends. Eventually, you run out of credit ...and you experience a terrible contraction. Welcome to it. It's been a long time coming. Clinton avoided it with the tech bubble; Bush avoided it with the housing bubble. Obama needs a bubble, but there are no fake stimuli left. America even hawked its houses. There is nothing left.
Obama's real mistake was that he did what all American presidents do: he promised them prosperity when he should have warned them of the deep sacrifices that lie ahead. He should have told America that her 30 year credit orgy was over . . . and the hangover is going to be longer and harder than anyone realizes. Of course, you can't get elected by being honest.
