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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|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.]]   

[[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 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 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. The budget passed on party line votes.

[[Image:Budget-cbo.jpg|thumb|250px|left]] The Congressional Budget Office (CBO) estimates the Obama plans will raise the national debt far more than Obama says. The CBO says the Obama plan will cause total deficits over the next ten years of $9.3 trillion, compared to Obama's estimate of "only" 7 trillion. That is in addition to the current national debt of $11 trillion and rising.  The annual GDP by contrast is about $15 trillion and falling.<ref> Jackie Calmes, "New Deficit Forecast Casts Shadow on Obama Agenda," [http://www.nytimes.com/2009/03/21/washington/21deficit.html?th&emc=th ''New York Times'' Mar. 20, 2009]</ref> Senator Jedd Gregg says that Obama's budget will double the national debt in five years and triple it in ten. <ref>http://www.politifact.com/truth-o-meter/statements/2009/mar/25/judd-gregg/judd-gregg-says-obamas-budget-doubles-national-deb/</ref>

[[Image:Budget-cbo.jpg|thumb|250px|left]] The Congressional Budget Office (CBO) estimates the Obama plans will raise the national debt far more than Obama says. The CBO says the Obama plan will cause total deficits over the next ten years of $9.3 trillion, compared to Obama's estimate of "only" 7 trillion. That is in addition to the current national debt of $11 trillion and rising.  The annual GDP by contrast is about $15 trillion and falling.<ref> Jackie Calmes, "New Deficit Forecast Casts Shadow on Obama Agenda," [http://www.nytimes.com/2009/03/21/washington/21deficit.html?th&emc=th ''New York Times'' Mar. 20, 2009]</ref> Senator Jedd Gregg says that Obama's budget will double the national debt in five years and triple it in ten. <ref>http://www.politifact.com/truth-o-meter/statements/2009/mar/25/judd-gregg/judd-gregg-says-obamas-budget-doubles-national-deb/</ref>

More pain will come out of Obama's proposed carbon [[cap and trade]] system, which will raise energy prices for  families and businesses. It will cost an extra $645 billion between 2012 and 2019, which will result in higher prices. Rep. John Boehner said, "Let's just be honest and call it a carbon tax that will increase taxes on all Americans who drive a car, who have a job, who turn on a light switch, pure and simple."<ref>see [http://online.wsj.com/article/SB123566843777484625.html comment from conservative newspaper]</ref>

To reverse global warming, Obama has proposed a carbon [[cap and trade]] system, which will raise energy prices for  families and businesses, with rebates to most families. It will cost an extra $645 billion between 2012 and 2019, which will result in higher prices. Rep. John Boehner said, "Let's just be honest and call it a carbon tax that will increase taxes on all Americans who drive a car, who have a job, who turn on a light switch, pure and simple."<ref>see [http://online.wsj.com/article/SB123566843777484625.html comment from conservative newspaper]</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'''. Both parties agree that stimulus spending is needed to deal with the recession but Congress is unlikely to approve permanent 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===

The main criticism of the Obama team was the delay in rescuing banks. "They overpromised and underdelivered," said Stephen Stanley of RBS Greenwich Capital. "Secretary Geithner scheduled a big speech and came out with just a vague blueprint. The uncertainty is hanging over everyone's head."  Geithner unveiled the Obama plan Feb. 10, but he offered few details, and the Dow Jones Industrial Average is down almost 20% since the announcement, as multiple issues have troubled investors' confidence. A second criticism was that the stimulus package was not big enough, although some argued it was unnecessary.

The main criticism of the Obama team was the delay in rescuing banks. "They overpromised and underdelivered," said Stephen Stanley of RBS Greenwich Capital. "Secretary Geithner scheduled a big speech and came out with just a vague blueprint. The uncertainty is hanging over everyone's head."  Geithner unveiled the Obama plan Feb. 10, but he offered few details, and the Dow Jones Industrial Average is down almost 20% since the announcement, as multiple issues have troubled investors' confidence. A second criticism was that the stimulus package was not big enough, although some argued it was unnecessary.

The economists are increasingly pessimistic about the economy, predicting it will shed another 2.8 million jobs over the next 12 months as the unemployment rate climbs to 9.3% by December, up from the 8.1% rate recorded in February. Economists see a one-in-six chance that the U.S. will fall into a depression, defined as a decline in per-person GDP or consumption by 10% or more.  They give equally poor marks to the efforts of other countries to end the recession.

The economists are increasingly pessimistic about the economy, predicting it will shed another 2.8 million jobs over the next 12 months as the unemployment rate climbed to 8.5% in March 2009, and the GDP fell at an alarming 6.1% annual rate in the first quarter of 2009. Economists see a one-in-six chance that the U.S. will fall into a depression, defined as a decline in per-person GDP or consumption by 10% or more.  They give equally poor marks to the efforts of other countries to end the recession.

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.

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]]