Changes

Detroit spread gloom on Feb. 17 as GM starkly warned of impending bankruptcy unless it gets more aid. By August, both Chrysler and GM had entered bankruptcy, and come out again in much smaller size, as they closed a fourth of their dealerships, slashed wage rates, and repaid creditors with 29 cents on the dollar.  The government gave Chrysler away free to Fiat of Italy, which acquired ownership without investing any money. Meanwhile the part makers, which employ more workers than the Big Three automakers, verged on disaster and begged for billions.  The "[[cash for clunkers]]" proved to be a boondoogle for the rich at a cost of $3 billion to the Treasury.

Detroit spread gloom on Feb. 17 as GM starkly warned of impending bankruptcy unless it gets more aid. By August, both Chrysler and GM had entered bankruptcy, and come out again in much smaller size, as they closed a fourth of their dealerships, slashed wage rates, and repaid creditors with 29 cents on the dollar.  The government gave Chrysler away free to Fiat of Italy, which acquired ownership without investing any money. Meanwhile the part makers, which employ more workers than the Big Three automakers, verged on disaster and begged for billions.  The "[[cash for clunkers]]" proved to be a boondoogle for the rich at a cost of $3 billion to the Treasury.

===Policies problematic, say economists and public===

===Obama policies problematic, say economists and public===

In the view of 51 mostly conservative economists polled by the ''Wall Street Journal'' in July 2009, the Obama administration's economic program is problematic. President Obama and Treasury Secretary Geithner both got an average grade of 70 out of 100 for their handling of the financial crisis, but those grades varied widely.<ref>Obama scored 59 in March 2009, Geithner 51, and Bernanke 71. See Phil Izzo, "Obama, Geithner Get Low Grades From Economists,"  [http://online.wsj.com/article/SB123671107124286261.html  ''Wall Street Journal'' March 11, 2009]</ref>  Former President Bush and ex-Treasury chief Paulson received average grades of 50 and 60, respectively, when economists were asked how they handled the crisis while in office. By contrast, Fed chairman Bernanke scored much better, with an average grade of 85.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''Wall Street Journal'' July 10, 2009] </ref>

In the view of 51 mostly conservative economists polled by the ''Wall Street Journal'' in July 2009, the Obama administration's economic program is problematic. President Obama and Treasury Secretary Geithner both got an average grade of 70 out of 100 for their handling of the financial crisis, but those grades varied widely.<ref>Obama scored 59 in March 2009, Geithner 51, and Bernanke 71. See Phil Izzo, "Obama, Geithner Get Low Grades From Economists,"  [http://online.wsj.com/article/SB123671107124286261.html  ''Wall Street Journal'' March 11, 2009]</ref>  Former President Bush and ex-Treasury chief Paulson received average grades of 50 and 60, respectively, when economists were asked how they handled the crisis while in office. By contrast, Fed chairman Bernanke scored much better, with an average grade of 85.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''Wall Street Journal'' July 10, 2009] </ref>

[[Image:Stim1.jpg|thumb|380px|Cartoonist Chuck Asay summarizes the debate]]  

[[Image:Stim1.jpg|thumb|380px|Cartoonist Chuck Asay summarizes the debate]]  

Billionaire [[Warren Buffett]], former Federal Reserve Chairman Paul Volcker, and former Clinton Treasury Secretary [[Robert Rubin]] constituted Obama's transition team of Economic Advisers.<ref>[ http://www.bloomberg.com/apps/news?pid=20601110&sid=aSzNv81CYh0c Obama to Meet With Buffett, Daley, Economic Advisers], Bloomberg, Nov. 6 2008.</ref>  Rubin was being sharply criticized for his role in the collapse of [[Citigroup]] which needed $45 billion in federal [[bailout]] money.<ref>[http://www.reuters.com/article/topNews/idUSN0930738020090109 Robert Rubin quits Citigroup amid criticism], Reuters, Jan 9, 2009</ref>  Buffett, after the inauguration, spoke out against the administration's declared objective of not allowing "a crisis to go to waste" [http://www.swamppolitics.com/news/politics/blog/2009/03/buffett_hits_obama_congress_on.html] and Obama's massive tax increase on the needy and those least able to afford it. [http://greeninc.blogs.nytimes.com/2009/03/09/buffett-cap-and-trade-is-a-regressive-tax/]

Billionaire [[Warren Buffett]], former Federal Reserve Chairman Paul Volcker, and former Clinton Treasury Secretary [[Robert Rubin]] constituted Obama's transition team of Economic Advisers.<ref>[ http://www.bloomberg.com/apps/news?pid=20601110&sid=aSzNv81CYh0c Obama to Meet With Buffett, Daley, Economic Advisers], Bloomberg, Nov. 6 2008.</ref>  Rubin was being sharply criticized for his role in the collapse of [[Citigroup]] which needed $45 billion in federal [[bailout]] money.<ref>[http://www.reuters.com/article/topNews/idUSN0930738020090109 Robert Rubin quits Citigroup amid criticism], Reuters, Jan 9, 2009</ref>  Buffett, after the inauguration, spoke out against the administration's declared objective of not allowing "a crisis to go to waste" [http://www.swamppolitics.com/news/politics/blog/2009/03/buffett_hits_obama_congress_on.html] and Obama's massive tax increase on the needy and those least able to afford it. [http://greeninc.blogs.nytimes.com/2009/03/09/buffett-cap-and-trade-is-a-regressive-tax/]

====2010 Budget====

==== - 2010 Budget====

[[Image:Budget-cbo.jpg|thumb|250px|left]]

[[Image:Budget-cbo.jpg|thumb|250px|left]]

The Democratic controlled Congress by a party line vote in late April passed the  budget Obama proposed in late February. It called for $3.4 trillion in new spending, not counting the $787 billion in stimulus spending approved in February, nor the trillions in loan guarantees to banks.  The 2010 budget allocated $1.2 trillion for defense, and an additional $130 billion for the wars in Afghanistan and Iraq. Nondefense spending increased by 8% or $40 billion. The budget allowed the Obama health plan, which had not yet been written, to move through Congress on a fast track with no risk of filibuster.  

The Democratic controlled Congress by a party line vote in late April passed the  budget Obama proposed in late February. It called for $3.4 trillion in new spending, not counting the $787 billion in stimulus spending approved in February, nor the trillions in loan guarantees to banks.  The 2010 budget allocated $1.2 trillion for defense, and an additional $130 billion for the wars in Afghanistan and Iraq. Nondefense spending increased by 8% or $40 billion. The budget allowed the Obama health plan, which had not yet been written, to move through Congress on a fast track with no risk of filibuster.  

The Obama Administration based its domestic policies on the assumption of a rapid economic recovery generating the tax revenue needed to fund permanent new spending program for [[Obamacare]] and "greening the economy".  Administration forecasts were more starry-eyed than private sector forecasts. 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 were 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 based its domestic policies on the assumption of a rapid economic recovery generating the tax revenue needed to fund permanent new spending program for [[Obamacare]] and "greening the economy".  Administration forecasts were more starry-eyed than private sector forecasts. 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 were 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>

====2012 Budget====

==== - 2012 Budget====

Obama was roundly criticized for ignoring recommendations of his own Deficit Reduction Commission in his proposed 2012 Budget. Obama's proposals did nothing to address the burgeoning budget deficit responsible for lagging job creation and the persistent [[unemployment]] which has become the hallmark of his time in office. In response to [[Republican]] counter-proposals, rather than address substantive issues of reform, Obama descended into ''[[ad hominem]]'' attacks against advocates of improving the delivery of government services.<ref>http://www.mcclatchydc.com/2011/04/24/112725/obama-paints-rep-ryan-as-the-gop.html</ref><ref>http://www.realclearpolitics.com/articles/2011/04/23/the_unhappy_president_109638.html</ref>

Obama was roundly criticized for ignoring recommendations of his own [[Deficit Reduction Commission]] in his proposed 2012 Budget. Obama's proposals did nothing to address the burgeoning budget deficit responsible for lagging job creation and the persistent [[unemployment]] which has become the hallmark of his time in office. In response to [[Republican]] counter-proposals, rather than address substantive issues of reform, Obama descended into ''[[ad hominem]]'' attacks against advocates of improving the delivery of government services.<ref>http://www.mcclatchydc.com/2011/04/24/112725/obama-paints-rep-ryan-as-the-gop.html</ref><ref>http://www.realclearpolitics.com/articles/2011/04/23/the_unhappy_president_109638.html</ref>

===Obama Care===

===Obama Care===