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The '''Obama Administration''' is the Executive Department portion of the U.S. government under [[liberal]], [[Democratic Party|Democrat]]  President [[Barack Hussein Obama]]; it began on January 20, 2009 for a term of four years.  

The '''Obama Administration''' is the Executive Department portion of the U.S. government under [[liberal]], [[Democratic Party|Democrat]]  President [[Barack Hussein Obama]]; it began on January 20, 2009 for a term of four years.  

Although the exact direction of the Administration is unknown, it is known from public policy statements and initial actions that it will take a more [[leftist]] position than the [[Bush Administration]] on issues such as taxing the rich and [[abortion]]. [[Image:Geithner2,jpg.jpg|thumb|310px|Obama has filled few top positions--none in the Treasury besides the Secretary himself, who is stretched thin. For example he was to busy to notice the huge bonuses awarded to A.I.G. traders.]]   

Although the exact direction of the Administration is unknown, it is known from public policy statements and initial actions that it will take a more [[leftist]] position than the [[Bush Administration]] on issues such as taxing the rich and [[abortion]]. [[Image:Geithner2,jpg.jpg|thumb|250px|Obama has filled few top positions--none in the Treasury besides the Secretary himself, who is stretched thin. For example he was too busy to notice the huge bonuses awarded to A.I.G. traders.]]   

==Economics==

==Economics==

The gravest crisis it faces is the [[Recession of 2008]], with the economy spiraling downward. Moving fast, the House on Jan. 28 passed an [[economic stimulus]] package‎ of $819 billion in new spending and tax increases, despite unanimous Republican opposition. A revised bill passed the Senate with three Republican votes. A compromise bill known as the "[[American Recovery and Reinvestment Act of 2009]]" is now law, providing for $789 billion in tax cuts and new spending. Democrats claim it will prevent 3-4 million jobs from disappearing, but economists are unsure how to measure the impact it will have. <ref>see [http://www.freemarketproject.org/articles/2009/20090224125726.aspx Conservative commentary]</ref> The stock market declined rapidly after Obama took office, and in March 2009, the Wall Street Journal declared "President Obama's policies have become part of the economy's problem". <ref>http://online.wsj.com/article/SB123604419092515347.html</ref>

The gravest crisis it faces is the [[Recession of 2008]], with the economy spiraling downward. Moving fast, the House on Jan. 28 passed an [[economic stimulus]] package‎ of $819 billion in new spending and tax increases, despite unanimous Republican opposition. A revised bill passed the Senate with three Republican votes. A compromise bill known as the "[[American Recovery and Reinvestment Act of 2009]]" is now law, providing for $789 billion in tax cuts and new spending. Democrats claim it will prevent 3-4 million jobs from disappearing, but economists are unsure how to measure the impact it will have. <ref>see [http://www.freemarketproject.org/articles/2009/20090224125726.aspx Conservative commentary]</ref> The stock market declined rapidly after Obama took office, and in March 2009, the Wall Street Journal declared "President Obama's policies have become part of the economy's problem". <ref>http://online.wsj.com/article/SB123604419092515347.html</ref>

The chairman of the Senate Budget Committee is conservative Democrat [[Kent Conrad]] of [[North Dakota]], a deficit hawk who said he is "very uncomfortable with the build-up of debt" and urged Obama to make good on his promise to overhaul federal retirement and health-care programs. Conrad called for "more discipline on the spending side."<ref> [http://www.washingtonpost.com/wp-dyn/content/article/2009/02/28/AR2009022801960.html?hpid=topnews ''Washington Post'' Mar. 1, 2009]</ref>

The chairman of the Senate Budget Committee is conservative Democrat [[Kent Conrad]] of [[North Dakota]], a deficit hawk who said he is "very uncomfortable with the build-up of debt" and urged Obama to make good on his promise to overhaul federal retirement and health-care programs. Conrad called for "more discipline on the spending side."<ref> [http://www.washingtonpost.com/wp-dyn/content/article/2009/02/28/AR2009022801960.html?hpid=topnews ''Washington Post'' Mar. 1, 2009]</ref>

===Optimism or pessimism?===

===Optimism or Pessimism?===

The Obama Administration is basing its domestic policies on the assumption of a rapid economic recovery, that will generate the tax revenue needed to fund permanent new spending program in areas such as health care and greening the economy.  It assumes that the rich will recover enough of their investments to pay new taxes--right now tax collections are falling sharply as investments turn sour. Administration forecasts are more optimistic than private sector forecasts, which see a 25% chance of a '''Second Great Depression'''. Congress is unlikely to approve very heavy new spending programs unless the economy improves, since a large number of conservative Democrats have been recently elected who may vote with Republicans to keep down spending and deficits.<ref> Peter S. Goodman, "Sharper Downturn Clouds Obama Spending Plans," [http://www.nytimes.com/2009/02/28/business/economy/28recession.html?_r=1&th&emc=th  ''Washington Post'' Feb. 27, 2009]</ref>

The Obama Administration is basing its domestic policies on the assumption of a rapid economic recovery, that will generate the tax revenue needed to fund permanent new spending program in areas such as health care and greening the economy.  It assumes that the rich will recover enough of their investments to pay new taxes--right now tax collections are falling sharply as investments turn sour. Administration forecasts are more optimistic than private sector forecasts, which see a 25% chance of a '''Second Great Depression'''. Congress is unlikely to approve very heavy new spending programs unless the economy improves, since a large number of conservative Democrats have been recently elected who may vote with Republicans to keep down spending and deficits.<ref> Peter S. Goodman, "Sharper Downturn Clouds Obama Spending Plans," [http://www.nytimes.com/2009/02/28/business/economy/28recession.html?_r=1&th&emc=th  ''Washington Post'' Feb. 27, 2009]</ref>

===Obama flunking, say economists===

 

===Obama Flunking, Say Economists===

Although public opinion of Obama remains positive, experts have turned from positive expectations in December 2008 to a negative assessment in March 2009. The ''Wall Street Journal'' survey of 49 professional economists gives poor grades to Obama and his key people. On a scale of 100 = best, Obama was scored 59 in March 2009, Treasury Secretary Geithner 51, and Fed Chairman Bernanke 71.<ref>See Phil Izzo, "Obama, Geithner Get Low Grades From Economists,"  [http://online.wsj.com/article/SB123671107124286261.html  ''Wall Street Journal'' Mar. 11, 2009]</ref>     

Although public opinion of Obama remains positive, experts have turned from positive expectations in December 2008 to a negative assessment in March 2009. The ''Wall Street Journal'' survey of 49 professional economists gives poor grades to Obama and his key people. On a scale of 100 = best, Obama was scored 59 in March 2009, Treasury Secretary Geithner 51, and Fed Chairman Bernanke 71.<ref>See Phil Izzo, "Obama, Geithner Get Low Grades From Economists,"  [http://online.wsj.com/article/SB123671107124286261.html  ''Wall Street Journal'' Mar. 11, 2009]</ref>     

The economists, however, were broadly supportive of the Federal Reserve. Over 85% agreed that its proliferating lending programs are well-designed, well-executed and helping the economy.

The economists, however, were broadly supportive of the Federal Reserve. Over 85% agreed that its proliferating lending programs are well-designed, well-executed and helping the economy.

===Bailout crisis worsens===

 

===Bailout Crisis Worsens===

After spending over a trillion dollars in cash and guarantees, the bailout of the financial system by March 2009 seems to have failed to help economic recovery. Obama started to decline in the polls, as independents and Republicans became increasingly critical.  A firestorm of outrage swept the nation in March when it was learned that AIG insurance company, now 80% government owned, was paying $165 million in bonuses to the traders that had caused $60 billion in losses. Geithner was appointed to the Treasury largely on the basis of his work at the New York Fed, where his most important action was to design the bailout of AIG. Under Geithner's leadership it received $170 billion from the government.

After spending over a trillion dollars in cash and guarantees, the bailout of the financial system by March 2009 seems to have failed to help economic recovery. Obama started to decline in the polls, as independents and Republicans became increasingly critical.  A firestorm of outrage swept the nation in March when it was learned that AIG insurance company, now 80% government owned, was paying $165 million in bonuses to the traders that had caused $60 billion in losses. Geithner was appointed to the Treasury largely on the basis of his work at the New York Fed, where his most important action was to design the bailout of AIG. Under Geithner's leadership it received $170 billion from the government.

[[Image:Toxic-assets.jpg|thumb|300px|left|Geithner plans to sell toxic assets to Wall Street]]

[[Image:Toxic-assets.jpg|thumb|300px|left|Geithner plans to sell toxic assets to Wall Street]]

A growing failure of leadership emerged in the Treasury department in March, as it proved difficult to assemble a leadership team.  Dozens of senior Treasury jobs are empty; apart from the Secretary, the first 3 names were sent to the Senate for confirmation on March 8 and two other top nominees withdrew their names. Secretary Geithner is overwhelmed with multiple major responsibilities without any senior officials in place.  He does have about 50 informal aides.  The result was poorly thought out proposals that won no support, and lengthy delays in responding to the increasingly serious financial crisis.  Analysts debated whether the display of incompetence was due more to Geithner or the White House.

A growing failure of leadership emerged in the Treasury department in March, as it proved difficult to assemble a leadership team.  Dozens of senior Treasury jobs are empty; apart from the Secretary, the first 3 names were sent to the Senate for confirmation on March 8 and two other top nominees withdrew their names. Secretary Geithner is overwhelmed with multiple major responsibilities without any senior officials in place.  He does have about 50 informal aides.  The result was poorly thought out proposals that won no support, and lengthy delays in responding to the increasingly serious financial crisis.  Analysts debated whether the display of incompetence was due more to Geithner or the White House.

===Cabinet Scandals===

===Cabinet Scandals===

[[Image:Cabinet09.jpg|thumb|300px]]

[[Image:Cabinet09.jpg|thumb|300px]]

It was not a scandal but an embarrassment for Obama on Feb. 12, when New Hampshire Republican Senator Judd Gregg, who had agreed to join the cabinet as Secretary of Commerce, dropped out. Gregg cited irreconcilable differences, and observers pointed out that Obama's staff planned to take the 2010 Census out of the Commerce Department's jurisdiction, weakening the secretary and politicizing the census.

It was not a scandal but an embarrassment for Obama on Feb. 12, when New Hampshire Republican Senator Judd Gregg, who had agreed to join the cabinet as Secretary of Commerce, dropped out. Gregg cited irreconcilable differences, and observers pointed out that Obama's staff planned to take the 2010 Census out of the Commerce Department's jurisdiction, weakening the secretary and politicizing the census.

===Senate scandals===

===Senate Scandals===

Even more damaging to liberal Democrats were scandals involving the Senate seats of Clinton and Obama himself. In New York Gov. [[David Paterson]] came to office in 2008 after a sex scandal forced the resignation of his predecessor. Paterson damaged himself and his Democratic party by dangling an appointment to  Caroline Kennedy, who was unable to make up her mind. He finally rejected her and turned to the most conservative Democrat in the entire Northeast, Rep. [[Kirsten Gillibrand]]. She is a [[Blue Dog Democrat]] known for her defense of gun rights and opposition to the Obama stimulus package.  

Even more damaging to liberal Democrats were scandals involving the Senate seats of Clinton and Obama himself. In New York Gov. [[David Paterson]] came to office in 2008 after a sex scandal forced the resignation of his predecessor. Paterson damaged himself and his Democratic party by dangling an appointment to  Caroline Kennedy, who was unable to make up her mind. He finally rejected her and turned to the most conservative Democrat in the entire Northeast, Rep. [[Kirsten Gillibrand]]. She is a [[Blue Dog Democrat]] known for her defense of gun rights and opposition to the Obama stimulus package.