Scenario 1:


A fragile economy on the brink is met with a huge stimulus, absent funds to pay for the stimulus the deficit soars. The stimulus creates, at best, make work jobs. New industries are absent and the only growth is in commercials for bankruptcy attorneys.  Despite the hoped for effect of the stimulus, unemployment rises and tax receipts fall, creating an even larger deficit. Employers, reluctant to hire with proposed income and health care excise tax increases hanging over their heads, do not engender the usual post recession expansion. The economy remains at standstill, unemployment remains high, the deficit expanding and consumer confidence is at historic low levels.

Scenario 2:

A fragile economy on the brink is met with a broad series of marginal and business tax cuts. Absent funds to pay for the tax cuts, the deficit initially rises but due to the increased economic activity brought on by citizens holding onto the $700 billion in tax cuts, tax receipts have now exploded and unemployment dramatically reduced. Several "new" business are ready to start their next generation and IPO's have exploded. Despite the Presidents cultural issues with the Conservatives, they are grudgingly expressing admiration for the President and his willingness to work with them on economic issues.