Collectivism is stupid, so is socialism. What is a proven method is regulation of the economy rather than simple Laissez Faire economics. The reason why so many European states are doing so bad is that they went too deep into the collectivist state. Socialism is a joke, economic liberalism in the form of regulation is usually the way to go in times like this.
"The only thing we have to fear is fear itself."
- Franklin Delano Roosevelt
Economic Liberalism and Social Conservatism is the recipe for success in the Western World. Roosevelt demonstrated this with his New Deal Coalition, the reason why it broke however was that it only applied to whites. Racists did not want want minorities to be part of this golden age. What Obama must do is repeat this coalition with the extension of racial minorities to ensure the prosperity of America.