President-elect Barack Obama has made it clear that he believes government intervention is the best way to help the country overcome its current economic challenges.
In a speech given on Thursday in support of his economic stimulus package, Obama said that "only government can provide the short-term boost necessary to lift us from a recession this deep and severe."
He is attempting to tie the measures in the stimulus to expanding other government-led programs, including those relating to infrastructure and green energy.
According to some experts, Obama’s vision represents a 180-degree reversal from that espoused by Ronald Reagan during the financial crisis of the early 80s.
Allan Lichtman, a professor at American University in Washington, told the Los Angeles Times that in the president-elect’s view, "it’s not just a matter of fixing the economy – it’s a matter of fundamentally moving the economy in a new direction."
"And government, not private enterprise, has to take the lead," he added.
Obama’s economic stimulus package could cost as much as $1 trillion, according to estimates. Some have questioned how this spending will be achieved without raising taxes significantly.