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{{main article|Obama administration}}

{{main article|Obama administration}}

[[File:Obama and George H. W. Bush.jpg|thumb|right|300px|President Barack Obama meets with former President George H. W. Bush in the Oval Office, Feb. 15, 2011. (Official White House Photo by Pete Souza).]]

[[File:Obama and George H. W. Bush.jpg|thumb|right|300px|President Barack Obama meets with former President George H. W. Bush in the Oval Office, Feb. 15, 2011. (Official White House Photo by Pete Souza).]]

Under Obama's stewardship the United States has suffered the largest [[Federal budget deficit|deficit]]s<ref>Edwards, B. et. al. (2009, November 6). [http://www.cbo.gov/ftpdocs/107xx/doc10708/11-06-mbr.htm Monthly Budget Review: Fiscal Year 2009]. ''Congressional Budget Office''.<br>Delisle, E.C. et. al. (2010, November 5). [http://www.cbo.gov/ftpdocs/118xx/doc11873/NovemberMBR.pdf Monthly Budget Review: Fiscal Year 2010]. ''Congressional Budget Office''.</ref> in history and a credit downgrade from the rating agency Standard & Poor.  However, during the Obama Administration the national deficit has increased at a much lower rate than during the Bush Administration. Most observers attribute the deficits to increasing benefits and welfare paid out on account of the Recession he inherited and has failed to end along with decreasing tax receipts.  Standard & Poor decided to downgrade U.S. government deby after the debt ceiling debate debacle, where Congressional leaders refused to pass a bill authorizing borrowing to pay for the budget they had passed with much debate and controversy earlier in the year.  Cynics have argued that rhetoric directed at the rating agencies about the issuance of AAA ratings to junk real estate bonds spurred the downgrade as a form of retribution.  Ironically, the investor scare led to the flocking of investors to the safe haven of the Treasury bonds which had been downgraded, resulting in lower interest rates.  As there are very few AAA bond markets, investors will likely continue to buy U.S. government debt for the foreseeable future.  <ref>Greenwald, A. (2011, April 18). [http://www.commentarymagazine.com/2011/04/18/the-sp-outlook-and-obama/ The S&P Outlook and Obama]. ''Commentary Magazine''.</ref>  When his [[economic stimulus]] program was adopted unemployment rose and stagnated in the 10% range, <ref>Di Leo, L & Lynch, S.N. (2010, August 20). [http://online.wsj.com/article/SB10001424052748704476104575439172480870774.html Jobless Claims Jump in New Sign Recovery is Sputtering]. ''The Wall Street Journal''.</ref> leaving tens of millions without [[hope]] of finding a job.<ref>Bureau of Labor Statistics. [http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS11300000&years_option=specific_years&include_graphs=true&to_month=1&from_month=2 Databases, Tables & Calculators by Subject: Labor Force Statistics from the Current Population Survey]. ''United States Department of Labor''. Data extracted on: July 19, 2010 (4:31:11 PM).</ref>  

Under Obama's leadership the United States has suffered the largest [[Federal budget deficit|deficit]]s<ref>Edwards, B. et. al. (2009, November 6). [http://www.cbo.gov/ftpdocs/107xx/doc10708/11-06-mbr.htm Monthly Budget Review: Fiscal Year 2009]. ''Congressional Budget Office''.<br>Delisle, E.C. et. al. (2010, November 5). [http://www.cbo.gov/ftpdocs/118xx/doc11873/NovemberMBR.pdf Monthly Budget Review: Fiscal Year 2010]. ''Congressional Budget Office''.</ref> in history and a credit downgrade from the rating agency Standard & Poor.  However, during the Obama Administration the national deficit has increased at a much lower rate than during the Bush Administration. Most observers attribute the deficits to increasing benefits and welfare paid out on account of the recession he inherited and has failed to end along with decreasing tax receipts.  Standard & Poor decided to downgrade U.S. government debt after the debt ceiling debate debacle, where Congressional leaders refused to pass a bill authorizing borrowing to pay for the budget they had passed with much debate and controversy earlier in the year.  Cynics have argued that rhetoric directed at the rating agencies about the issuance of AAA ratings to junk real estate bonds spurred the downgrade as a form of retribution.  Ironically, the investor scare led to the flocking of investors to the safe haven of the Treasury bonds which had been downgraded, resulting in lower interest rates.  As there are very few AAA bond markets, investors will likely continue to buy U.S. government debt for the foreseeable future.  <ref>Greenwald, A. (2011, April 18). [http://www.commentarymagazine.com/2011/04/18/the-sp-outlook-and-obama/ The S&P Outlook and Obama]. ''Commentary Magazine''.</ref>  When his [[economic stimulus]] program was adopted unemployment rose and stagnated in the 10% range, <ref>Di Leo, L & Lynch, S.N. (2010, August 20). [http://online.wsj.com/article/SB10001424052748704476104575439172480870774.html Jobless Claims Jump in New Sign Recovery is Sputtering]. ''The Wall Street Journal''.</ref> leaving tens of millions without [[hope]] of finding a job.<ref>Bureau of Labor Statistics. [http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS11300000&years_option=specific_years&include_graphs=true&to_month=1&from_month=2 Databases, Tables & Calculators by Subject: Labor Force Statistics from the Current Population Survey]. ''United States Department of Labor''. Data extracted on: July 19, 2010 (4:31:11 PM).</ref>  

Patrick H. Caddell and Douglas E. Schoen, writing in the [[Wall Street Journal]], noted, "Rather than being a unifier, Mr. Obama has divided America on the basis of race, class and partisanship." The commentators also note Obama's approach to governance has encouraged radical leftists to pursue a similar strategy on his behalf. Mary Frances Berry, former head of the U.S. Civil Rights Commission, acknowledged that the [[Obama administration]] has taken to polarizing America around the issue of race as a means of diverting attention from other issues, saying, "Having one's opponent [[race card|rebut charges of racism]] is far better than discussing [[Unemployment|joblessness]]."<ref>Berry, M.F. (2010, July 20). [http://www.politico.com/arena/perm/Mary_Frances_Berry_91E3D9D5-C40D-440C-9D48-1C50CBC60C87.html Energy Arena, Driving the Conversation: Contracting Out U.S. Security? And will Branding Tea Party Racist Work?] ''Politico''.</ref> Caddell and Schoen, who worked for President Carter and Clinton, respectively, further stated, "Mr. Obama has also cynically [[class warfare|divided the country on class lines]]. He has taken to playing the populist card time and time again. He bashes Wall Street and insurance companies whenever convenient to advance his programs, yet he has been eager to accept campaign contributions and negotiate with these very same banks and [[corporation]]s behind closed doors in order to advance his political agenda... President Obama's divisive approach to governance has weakened us as a people and paralyzed our political culture."<ref>Caddell, P.H. & Schoen, D.E. (2010, July 28). [http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748703700904575391553798363586.html Our Divisive President]. ''The Wall Street Journal''.</ref>

Patrick H. Caddell and Douglas E. Schoen, writing in the [[Wall Street Journal]], noted, "Rather than being a unifier, Mr. Obama has divided America on the basis of race, class and partisanship." The commentators also note Obama's approach to governance has encouraged radical leftists to pursue a similar strategy on his behalf. Mary Frances Berry, former head of the U.S. Civil Rights Commission, acknowledged that the [[Obama administration]] has taken to polarizing America around the issue of race as a means of diverting attention from other issues, saying, "Having one's opponent [[race card|rebut charges of racism]] is far better than discussing [[Unemployment|joblessness]]."<ref>Berry, M.F. (2010, July 20). [http://www.politico.com/arena/perm/Mary_Frances_Berry_91E3D9D5-C40D-440C-9D48-1C50CBC60C87.html Energy Arena, Driving the Conversation: Contracting Out U.S. Security? And will Branding Tea Party Racist Work?] ''Politico''.</ref> Caddell and Schoen, who worked for President Carter and Clinton, respectively, further stated, "Mr. Obama has also cynically [[class warfare|divided the country on class lines]]. He has taken to playing the populist card time and time again. He bashes Wall Street and insurance companies whenever convenient to advance his programs, yet he has been eager to accept campaign contributions and negotiate with these very same banks and [[corporation]]s behind closed doors in order to advance his political agenda... President Obama's divisive approach to governance has weakened us as a people and paralyzed our political culture."<ref>Caddell, P.H. & Schoen, D.E. (2010, July 28). [http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748703700904575391553798363586.html Our Divisive President]. ''The Wall Street Journal''.</ref>

Nevertheless, budgets passed under President Obama have included the smallest average annualized growth of federal spending (1.4%) since before President Reagan. Federal spending grew an average of 8.7% per year during Reagan's first term and an average of 8.1% per year during George W. Bush's second term.<ref>{{cite web|url=http://www.forbes.com/sites/rickungar/2012/05/24/who-is-the-smallest-government-spender-since-eisenhower-would-you-believe-its-barack-obama/|title=Who Is The Smallest Government Spender Since Eisenhower? Would You Believe It's Barack Obama?|publisher=Forbes|author=Rick Ungar|date=May 24th, 2012}}</ref>

Nevertheless, budgets passed under President Obama have included the smallest average annualized growth of federal spending (1.4%) since before President Reagan. Federal spending grew an average of 8.7% per year during Reagan's first term and an average of 8.1% per year during George W. Bush's second term.<ref>{{cite web|url=http://www.forbes.com/sites/rickungar/2012/05/24/who-is-the-smallest-government-spender-since-eisenhower-would-you-believe-its-barack-obama/|title=Who Is The Smallest Government Spender Since Eisenhower? Would You Believe It's Barack Obama?|publisher=Forbes|author=Rick Ungar|date=May 24th, 2012}}</ref>

[[Wall Street]] firms and banks that were bailed out were among Obama's biggest campaign supporters.<ref>''OpenSecrets.org''. [http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638 Barack Obama: Top Contributors]. The Center for Responsive Politics.</ref>  Therefore, the Obama administration bailouts of corrupt, unproductive, and reckless Wall Street firms was hardly surprising, and many argue that it was not helpful in making the United States economy more productive and prosperous by encouraging more risk taking through letting banks off with a slap on the wrist.  Others argue that bailing out the banks kept credit flowing and prevented a much deeper recession and a total collapse of the financial system.  The government will recoup some though not all of its capital infusions over time.  A 2005 study found that government corporate bailouts are often done for mere political considerations and the economic resources allocated exhibit significantly worse economic performance than resources allocated using purely business considerations.<ref>Faccio, M. et. al. (2005, March 1). [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=676905 Political Connections and Corporate Bailouts]. ''Social Science Research Network''.</ref>  Proponents of [[free market]] capitalism said Bernanke should not have bailed out failing firms and instead should have allowed free market capitalism to quickly recover as it did in the depression of 1920 without government intervention (free market capitalists assert that government intervention drags out economic recessions and depressions).<ref>Woods, T.E. (2009, April 10). [http://www.youtube.com/watch?v=czcUmnsprQI Why You've Never Heard of the Great Depression of 1920]. ''Ludwig Von Mises Institute''. Hosted on ''YouTube''.</ref>  

[[Wall Street]] firms and banks that were bailed out were among Obama's biggest campaign supporters.<ref>''OpenSecrets.org''. [http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638 Barack Obama: Top Contributors]. The Center for Responsive Politics.</ref>  Therefore, the Obama administration bailouts of unscrupulous, unproductive, and irrresponsible Wall Street firms was hardly surprising, and many argue that it was not helpful in making the United States economy more productive and prosperous by encouraging more risk taking through letting banks off with a slap on the wrist.  Others argue that bailing out the banks kept credit flowing and prevented a much deeper recession and a total collapse of the financial system.  The government will recoup some though not all of its capital infusions over time.  A 2005 study found that government corporate bailouts are often done for mere political considerations and the economic resources allocated exhibit significantly worse economic performance than resources allocated using purely business considerations.<ref>Faccio, M. et. al. (2005, March 1). [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=676905 Political Connections and Corporate Bailouts]. ''Social Science Research Network''.</ref>  Proponents of [[free market]] capitalism said Bernanke should not have bailed out failing firms and instead should have allowed free market capitalism to quickly recover as it did in the depression of 1920 without government intervention (free market capitalists assert that government intervention drags out economic recessions and depressions).<ref>Woods, T.E. (2009, April 10). [http://www.youtube.com/watch?v=czcUmnsprQI Why You've Never Heard of the Great Depression of 1920]. ''Ludwig Von Mises Institute''. Hosted on ''YouTube''.</ref>  

   

   

Top trend forecaster [[Gerald Celente]] predicts that the corrupt economic policies of the Obama administration will lead to a second [[Great Depression|great depression]] (Celente predicted the 1987 US stock market crash, the dot.com crash, the US 2008/2009 recession, and the collapse of the USSR in the early 1990s) and may lead to a "second [[American Revolution]]" (Celente predicted the [[Tea Party Movement|tax protests]] that are now occurring in America).<ref name="celente1">Celente, G. (2009, August 1). [http://www.youtube.com/watch?v=8MMX3SKzrfU&feature=channel_page pt 2/2 Gerald Celente on Financial Sense Newshour Aug 1st 2009]. ''Financial Sense Newshour''. Hosted on ''YouTube''.</ref><ref name="celente2">Celente, G. (2009, August 2). [http://www.youtube.com/watch?v=sy9bfw1ebgw&feature=response_watch ]. ''Financial Sense Newshour''. Hosted on ''YouTube''.</ref>  Celente also asserts that the costly and inefficient temporary short term methods that the Obama administration is using to alleviate economic problems in the short term (which is causing massive increases in [[Obama administration deficit spending]]) is only making matters worse and will not prevent the worse economic depression in United States history from occurring.<ref>Celente, G. (2009, August 11). [http://www.youtube.com/watch?v=_C8K7rWkGGw pt 1/2 Gerald Celente on Howestreet.com 11 Aug 2009]. ''HoweStreet.com''. Hosted on ''YouTube''.</ref><ref>Celente, G. (2009, August 11). [http://www.youtube.com/watch?v=1LBffdIW0XA&feature=response_watch pt 2/2 Gerald Celente on Howestreet.com 11 Aug 2009]. ''HoweStreet.com''. Hosted on ''YouTube''.</ref>   

Top trend forecaster [[Gerald Celente]] predicts that the corrupt economic policies of the Obama administration will lead to a second [[Great Depression|great depression]] (Celente predicted the 1987 US stock market crash, the dot.com crash, the US 2008/2009 recession, and the collapse of the USSR in the early 1990s) and may lead to a "second [[American Revolution]]" (Celente predicted the [[Tea Party Movement|tax protests]] that are now occurring in America).<ref name="celente1">Celente, G. (2009, August 1). [http://www.youtube.com/watch?v=8MMX3SKzrfU&feature=channel_page pt 2/2 Gerald Celente on Financial Sense Newshour Aug 1st 2009]. ''Financial Sense Newshour''. Hosted on ''YouTube''.</ref><ref name="celente2">Celente, G. (2009, August 2). [http://www.youtube.com/watch?v=sy9bfw1ebgw&feature=response_watch ]. ''Financial Sense Newshour''. Hosted on ''YouTube''.</ref>  Celente also asserts that the costly and inefficient temporary short term methods that the Obama administration is using to alleviate economic problems in the short term (which is causing massive increases in [[Obama administration deficit spending]]) is only making matters worse and will not prevent the worse economic depression in United States history from occurring.<ref>Celente, G. (2009, August 11). [http://www.youtube.com/watch?v=_C8K7rWkGGw pt 1/2 Gerald Celente on Howestreet.com 11 Aug 2009]. ''HoweStreet.com''. Hosted on ''YouTube''.</ref><ref>Celente, G. (2009, August 11). [http://www.youtube.com/watch?v=1LBffdIW0XA&feature=response_watch pt 2/2 Gerald Celente on Howestreet.com 11 Aug 2009]. ''HoweStreet.com''. Hosted on ''YouTube''.</ref>