True, all U.S. presidential inaugurations are big events but this one is historic for an obvious reason: the inauguration of the first African-American president in U.S. history.

Obama should get a positive 'bump'

The economic significance of the above? Incoming President Obama should get an extended 'honeymoon' - - the period after a new president's inauguration characterized by bipartisanship, civility, politeness between the two political parties, and a general spirit of cooperation. In post-World War II America, and especially since the U.S. cultural divide that began in the mid-1960s, presidential honeymoons have been short.

Further, while the extended honeymoon should help Obama at least get his fiscal stimulus plan passed, and perhaps another major legislative item, it won't be due solely to the historic nature of his November 2008 election victory. That's because, as the late, great presidential scholar Clinton Rossiter outlined, the U.S. president is also Chief of State, a ceremonial role, akin to a monarchy, in addition to being Chief of Government. Many nations separate those roles, particularly those that had/have monarchies. Because the American political system doesn't have a monarchy, the role defaults to the president. So, in a sense, the inauguration is part official transition of power, and part pageantry. Almost all presidents benefit from this meshing of the two roles, particularly when the 'state role' is more pronounced.

Finally, Obama's legislative agenda also should benefit from the upbeat, positive, celebratory nature of an inauguration itself, juxtaposed against the serious problems facing the nation. In other words, there's been so much bad news on the economic front, Americans want to cheer and celebrate something, even if it's just the start of a new administration: they want something to cheer for! And current polls bear this out: despite the nation's dire economic circumstances and other concerns, 75% of those voters polled by Newsweek last week (pdf) said they were "very optimistic" that the new Obama administration will be able to improve the way things are going in the country.

Economic / National Analysis: So starting next week, if the Obama administration is smart, it should move quickly to score a legislative victory on the most important issue of the day, which, of course, is the fiscal stimulus package, and related legislation designed to heal the nation's many economic wounds and weaknesses.

As for this week, expect a lot of champagne to be poured, and fittingly so, at the glittery events in and around our nation's capital.

Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.