Declines in business investment and employment were particularly sharp in this recession. Far from being a lightning bolt hitting a smoothly running economy, the crisis was exacerbated bystructural biases against business investment (from the tax code and regulation), financialimbalances (particularly fueled by biases against private saving and by the need to borrowabroad to finance our government deficits), and regulatory choices (excessive promotion of housing investment and inadequate attention to existing financial regulations and the rise of andconsequences of shadow banking). No single party or administration is responsible for structuralheadwinds to growth, but the Obama administrations errors and choices exacerbated theeconomys structural problems and weakened the recovery.Rather than focusing on the structural problems revealed by the financial crisis and the ensuingrecession, the Obama administration focused on short-term fiscal stimulus. To put the economy back on track, they borrowed deliberately and spent recklessly, ignoring weaknesses in housing, business investment, and employment. These short-term stimulus packages were ineffective,leaving the nation with higher debt, which acts as a drag on long-term growth becausehouseholds and businesses understand that the administration must raise taxes significantly to pay off that debt.