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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. [[File:Obama-poll.jpg|thumb|330px|Excitement for Obama was very high before people understood his plans; enthusiasm has plunged as criticism beomes sharper and strong opponents grow more numerous than strong supporters]] President Obama had a bad summer of 2009, as his popularity slumped, his party weakened and opportunities for celebrating achievements happened. Contentious town-hall meetings attacked the injustice of his health care proposals, unemployment grew, the stimulus did not stimulate, Democrats bickered more than usual, grim forecasts of failure came from his generals in Afghanistan, dark suspicions circulated regarding his motives for speaking to schoolchildren; accused of socialism, he was brand in Congress as a liar. He was criticized first for not making his case, and then for overexposure, as he deliberately put into the shadows everyone in his cabinet.  Obama’s inexperience in domestic and foreign affairs worsened his troubles. Expectations of a Republican revival, a wild pipedream in the spring, became realistic as the party led in the gubernatorial elections in New Jersey and Virginia, and the Democrats continued in disarray in New York, Texas and California. Conservatives predicted that it will soon be 1994 in America again.

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.  

 

President Obama had a bad summer of 2009, as his popularity slumped, his party weakened and opportunities for celebrating achievements happened. Contentious town-hall meetings attacked the injustice of his health care proposals, unemployment grew, the stimulus did not stimulate, Democrats bickered more than usual, grim forecasts of failure came from his generals in Afghanistan, dark suspicions circulated regarding his motives for speaking to schoolchildren; accused of socialism, he was brand in Congress as a liar. He was criticized first for not making his case, and then for overexposure, as he deliberately put into the shadows everyone in his cabinet.   

 

Obama’s inexperience in domestic and foreign affairs worsened his troubles. Expectations of a Republican revival, a wild pipedream in the spring, became realistic as the party led in the gubernatorial elections in New Jersey and Virginia, and the Democrats continued in disarray in New York, Texas and California. Conservatives predicted that it will soon be 1994 in America again.

==Economic Policy==

==Economic Policy==

[[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 $11.2 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 $11.2 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>

The Obama administration believes in the [[theory]] of man-made [[global warming]]. Thus, Obama has proposed a 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>

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>

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's economic policies===

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

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 has been sharply criticized for his role in the collapse of [[Citigroup]] which has taken $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 has since the inauguration been an outspoken critic of the administrations declared objective of not allowing "a crisis to go to waste"<ref>http://www.swamppolitics.com/news/politics/blog/2009/03/buffett_hits_obama_congress_on.html</ref> and Obama's massive tax increase on the needy and those least able to afford it.<ref>http://greeninc.blogs.nytimes.com/2009/03/09/buffett-cap-and-trade-is-a-regressive-tax/</ref>

In the view of 51 mostly conservative economists polled by the ''Wall Street Journal'' in July 2009, the Obama administration's economic performance 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 scores much better, with an average grade of 85; in addition 93% of respondents said he should be reappointed by Obama when Bernanke's term expires early next year.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''Wall Street Journal'' July 10, 2009] </ref>

Economists polled by the ''Wall Street Journal'' in July 2009, expressed concern that the Obama administration's economic performance is problematic. According to the ''Wall Street Journal'', in March 2009, [[Barack Hussein Obama|President Obama]] and Treasury Secretary [[Timothy Geithner]] both "received failing grades for their efforts to revive the economy."<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> By contrast, Fed chairman Bernanke scored much better, with an average grade of 85; in addition 93% of respondents believed Bernanke should be reappointed by Obama when his term expires in 2010.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''Wall Street Journal'' July 10, 2009] </ref>

The economists are pessimistic about the economy, predicting it will shed another 2.8 million jobs over the next 12 months as the unemployment rate climbed to 9.5% in June 2009, and the GDP fell at an alarming -6.4% 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 Obama Accountability Index====

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 day after Barack Obama was sworn in, on January 21, 2009, an [[economist]] and [[television]] host of ''Mad Money'', [[Jim Cramer]], created a stock index to track the new president's progress. Cramer chose companies that operated in the very sectors that needed the most help, and he suggested their performance would tell [[Americans]] how effective Obama had been and whether or not his plans to save the economy had worked. Solely based on the performance of the [[stock market]], Cramer created the "Obama Accountability Index."<ref>[http://www.cnbc.com/id/28753120 Cramer's 'State of the Market' Address], CNBC, Jan. 21, 2009.</ref> It consisted of six stocks to track the new president’s progress: Bank of America (BAC), Citigroup (C), Caterpillar (CAT), General Electric (GE), General Motors (GM) and JPMorgan chase (JPM). It’s an equal-weighted index that starts at 100, using closing prices on the day the index was created as a baseline. Cramer said, "This index will grade Obama’s success as president. If he fails, so does the stock market."<ref>[http://derekerwin.blogspot.com/2009/02/obama-lied-our-economy-died.html Obama Lied, Our Economy Died], A 1-In-100 Blogger, February 2009.</ref>

On February 20, 2009, Jim Cramer graded the president's ability to rejuvenate the economy, based on the ''Obama Accountability Index''. Reviewing Obama's 30-Day Report Card, Cramer said, "Well, the index is down 35% since Jan. 21, the day it was created. The S&P 500 over that same period has declined just 8%."<ref>[http://www.cnbc.com/id/29308202/ Obama's 30-Day Report Card], CNBC, Feb. 20, 2009.</ref> So Obama, at least according to Cramer’s portfolio, wasn't doing too well.

In June 2009 public opinion was favorable toward Obama personally, but increasingly dubious about his plans to overhaul health care, rescue the auto industry and close the prison at Guantánamo Bay. But with a positive job approval rating of 63% , Mr. Obama has the backing of Democrats and independents alike, even as Republicans turn negative, with only 23% supporting him. Support for Obama's foreign policies and terrorism policies remains high at 57-59%.  Meanwhile the GOP weaknesses were glaring: the June poll found that the Republican Party is viewed favorably by only 28% of Americans, the lowest rating ever in a New York Times/CBS News poll. In contrast, 57% said that they had a favorable view of the Democratic Party.<ref> [Jeff Zeleny and Dalia Sussman, "Obama Poll Sees Doubt on Budget and Health Care [http://www.nytimes.com/2009/06/18/us/politics/18poll.html?th&emc=th ''New York Times'' June 17, 2009]</ref>

On July 8, 2009, Jim Cramer on ''Mad Money'' again graded the performance of Obama's administration and economic policies against the performance of the stock market. He commented, "The same force that so hurt the markets this [[winter]] has yet again reared its ugly head: the [[White House|White House’s]] anti-business rhetoric. [...] Investors don’t seem to trust President Obama to create jobs and stimulate the economy, not when he prioritizes [[global warming|climate change]] and [[ObamaCare|health care]]." Moreover, the ''Mad Money Obama Accountability Index'' score had dropped to 96.1 from its starting point of 100. Cramer reminded viewers that, while the score of 96.1 may not sound bad, this measure of Obama's job performance "has been on the downswing." On a technical basis alone, Cramer warned, "The OAI could drop to 84 if all this anti-business chatter continues."<ref>[http://www.cnbc.com/id/31802202/site/14081545 Cramer: Obama Hurting the Economy], CNBC, July 8, 2009.</ref> He urged Obama to postpone his agenda in favor of boosting the economy. "Without more job creation," Cramer said, "the president’s agenda and his tone will continue to slowly and inexorably squeeze the life out of this stock market."

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 has been sharply criticized for his role in the collapse of [[Citigroup]] which has taken $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 has since the inauguration been an outspoken critic of the administrations 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/]

===Bailout Crisis ===

===Bailout Crisis ===