We've hit (again) a period of stagflation and reached the limits of a certain kind of economic growth. I, as much as anybody, would like to see the economy "back on track". But I'm also a realist, and I think we need to take a realistic look at what we mean by "back on track". Really, what we are all pining for are the pre-recession years, when we lived in an atmosphere of ever increasing value and wealth, with jobs aplenty. It became a norm, as it lasted for about a generation (say, roughly 1985-2005).
My thesis rests on the belief that this generation of economic boom was based on the rise of the computer (aka - technology). Sure, actual economists will point to the recession in the early 2000s and the housing bubble in the mids, before the bust we find ourselves in now, but I tend to look at the longer historical trend and I think the housing bubble can be explained by the increase in expendable wealth that we saw happen in the 90s. Now, that money has either been lost to bankruptcy or otherwise been accumulated in the hands of the financiers and there is no engine of wealth development as the computer revolution has run its course.
Both the Republicans and the Democrats have drunk the free market kool-aid, to use a really annoying phrase of contemporary (particularly, rightist) rhetoric. It seemed that with the end of the Cold War and the latest economic boom that capitalism was the answer to society's ills. However, what capitalism depends on is innovation: the boom-bust cycle is endemic to the system, the booms are dependent on technological innovation that then transforms society (steel, electricity, etc.).
But my contention has always been - there's an ultimate limit somewhere: eventually we run out of transformative ideas. There are only so many elements in the universe and they can be arranged in only so many ways. Of course, I'm sure there have been prognosticators in the past that have declared the end of transformation at whichever point and been proven wrong. And I'm not willing to declare that we've reached that point yet (because I'm never wrong - I'm only opinionated on stuff I'm pretty damn sure of), but the logical conclusion is that we are now at a historical point which may at least turn out to be a lull. There's not much the government can really do to spur the economy (though Obama's investment in green technology may prove to be the catalyst he hopes it to be). Really, we as a society should be thinking about how to make the most of what we have, economically, rather than seeing the wealth accumulated in the hands of the few and hoping that innovation will solve the unemployment problem (and meanwhile blaming the government for not "fixing the economy").