Changes

While Detroit spread gloom on Feb. 17 as GM starkly warned of impending bankruptcy unless it gets more aid, Obama promised $275 billion to help people refinance their home mortgages. Thus far Obama's response to economic crisis closely parallels that of [[Herbert Hoover]] in 1930-31 in dealing with the [[Great Depression]]. It is too early to say if his plan will be as unsuccessful as Hoover's but the mortgage plan was dismissed by CNBC announcer [[Rick Santelli]] who called it "collectivist." The Wall Street Journal says the plan will cost up to $275 billion and will help up to nine million homeowners. Thus, the cost is about $30,000 per homeowner helped. <ref>http://online.wsj.com/article/SB123496582087411241.html?mod=todays_us_page_one</ref>

While Detroit spread gloom on Feb. 17 as GM starkly warned of impending bankruptcy unless it gets more aid, Obama promised $275 billion to help people refinance their home mortgages. Thus far Obama's response to economic crisis closely parallels that of [[Herbert Hoover]] in 1930-31 in dealing with the [[Great Depression]]. It is too early to say if his plan will be as unsuccessful as Hoover's but the mortgage plan was dismissed by CNBC announcer [[Rick Santelli]] who called it "collectivist." The Wall Street Journal says the plan will cost up to $275 billion and will help up to nine million homeowners. Thus, the cost is about $30,000 per homeowner helped. <ref>http://online.wsj.com/article/SB123496582087411241.html?mod=todays_us_page_one</ref>

===2010 Budget===

===2010 Budget===

On Feb. 26 Obama proposed to Congress a $3.6 trillion budget containing a sharp shift toward expanded government activism, tax increases on high income families and businesses that are still profitable, with spending cuts targeted at businessmen he says profited from "an era of profound irresponsibility."<ref>[http://www.forbes.com/2009/02/27/obama-budget-small-business-personal-finance_obama_budget.html mixed evaluation from conservative economist]

On Feb. 26 Obama proposed to Congress a $3.6 trillion budget containing a sharp shift toward expanded government activism, tax increases on high income families and businesses that are still profitable, with spending cuts targeted at businessmen he says profited from "an era of profound irresponsibility."<ref>[http://www.forbes.com/2009/02/27/obama-budget-small-business-personal-finance_obama_budget.html mixed evaluation from conservative economist]

The Budget assumes federal deficit of $1.75 trillion for 2009, or 12.3% of GDP--the highest deficit in perscentage terms since World War II. By 2013, the hypothetical deficit will drop to $533 billion but then will begin to climb again. The budget includes an additional $250 billion for more rescues of the financial markets by purchasing toxic assets on the banking sector's books.

The Budget assumes federal deficit of $1.75 trillion for 2009, or 12.3% of GDP--the highest deficit in percentage terms since World War II. By 2013, the hypothetical deficit will drop to $533 billion but then will begin to climb again. The budget includes an additional $250 billion for more rescues of the financial markets by purchasing toxic assets on the banking sector's books.

The budget reorders national priorities to provide national health care, shift the energy economy away from oil and gas, and raise the federal spending on schools. To fund it all, families earning more than $250,000 and a variety of businesses will pay steep new taxes. Observers expect a fierce political battle over the budget, with conservatives calling it "class warfare" and detrimental to long-term growth.<Ref> see [http://online.wsj.com/article/SB123564748462081261.html?mod=djemalertNEWS ''Wall Street Journal'' Feb. 26, 2009]</ref>

The budget reorders national priorities to provide national health care, shift the energy economy away from oil and gas, and raise the federal spending on schools. To fund it all, families earning more than $250,000 and a variety of businesses will pay steep new taxes. Observers expect a fierce political battle over the budget, with conservatives calling it "class warfare" and detrimental to long-term growth.<Ref> see [http://online.wsj.com/article/SB123564748462081261.html?mod=djemalertNEWS ''Wall Street Journal'' Feb. 26, 2009]</ref>