There is a simple saying in politics; ‘It's the economy, stupid.'

Given that the 2008 US elections were held in the depths of the ‘Great Recession', the Republicans and John McCain never stood a chance. At the end, the polls showed that it wasn't even close.

In the worst downturn in more than 70 years, almost any Democrat would have walked away victorious. The Republicans did their best to distance themselves from the previous administration by nominating the most moderate guy they had around, John ‘Maverick' McCain, to no avail.

Low-tax, small-government policies had been shown to be a failure, destined for the trash heap of history right along communism. But has it?

In countries around the world, politicians in power are breaking out in a cold sweat at the thought of upcoming elections, be they conservatives or liberals. The electoral masses are crying out for blood and to them, whoever is in power is culpable.

Notably, Gordon Brown and the leftist Labour Party have seen their support fall precipitously. To the British electorate, a switch to the right of the political spectrum seems to be the right ‘change' they need.

This, however, does not mean that Bush's administration was all fine and dandy. In many respects, it was abysmal. But that is not an indictment on the Reagan principles of small government and low taxes.

True fiscal conservatives have been outraged at George junior's profligate spending and dramatic increase in the deficit.

Given that Obama was fortunate enough to come into power in a recession, there is no doubt in my mind that he will be reelected for another term in office.

Riding in the middle of the recession allows him to blame it on the previous guys while taking all the credit for the recovery, which inevitably follows, no matter who's at the helm.

I wholeheartedly hope that Obama succeeds as a moderate president. But to do so, it's imperative that he reins in the tree-hugging far left and prevent the ultra-conservative right from gaining support. The country has for too long been held hostage to the far ends of the political spectrum.

By being a strong, moderate president, Obama can show the political establishment that nominating moderates is the way to go instead of polarising candidates that just appeal to their 'base'.

Obama has eight years to rein in Nancy Pelosi's liberal agenda and show that he can resist the traditional democratic special interest groups like unions, the ideological environmentalist and peace-niks.

If he does, it'll herald a new dawn for moderate government. If he doesn't, it'll be politics as usual in eight years, with the Pelosis and Limbaughs of America summoning their army of extremist in the battle for who can ruin the country next.