Changes

==Worldwide crisis==

==Worldwide crisis==

The crisis is worse in many other countries, which means they are dragging down the US economy and cannot be expected to be the engine to restore prosperity.  Japan’s economy, the world’s second largest after the U.S., is deteriorating rapidly because of shrinking exports and weak domestic spending. Japan's GDP shrank at an annual rate of 12.7% in the fourth quarter of 2008, and the downward plunge shows no sign of reversal.  

The crisis is worse in many other countries, which means they are dragging down the US economy and cannot be expected to be the engine to restore prosperity.  Japan’s economy, the world’s second largest after the U.S., is deteriorating rapidly because of shrinking exports and weak domestic spending. Japan's GDP shrank at an annual rate of 12.7% in the fourth quarter of 2008, and the downward plunge shows no sign of reversal.  

[[Image:Bleak09.jpg|550px]]

[[Image:Bleak09.jpg|550px|right]]

Japan's exports to the U.S. and other areas are down sharply, causing massive layoffs at companies like Nissan, Toyota, Panasonic and Sony. Capital spending on tools and factories has fallen as companies halted production lines and cut investment. Consumer spending has stalled as Japanese households reduced spending amid the large-scale layoffs.  The government has promised a huge bailout package on the order of  50 trillion yen ($545 billion), but has been unable to get it passed in parliament.<ref>Hiroku Tabuschi, "Japan’s Economy Plunges at Fastest Pace Since ’74," [http://www.nytimes.com/2009/02/16/business/worldbusiness/16yen.html?ref=business ''New York Times'' Feb. 15, 2009]  </ref>

Japan's exports to the U.S. and other areas are down sharply, causing massive layoffs at companies like Nissan, Toyota, Panasonic and Sony. Capital spending on tools and factories has fallen as companies halted production lines and cut investment. Consumer spending has stalled as Japanese households reduced spending amid the large-scale layoffs.  The government has promised a huge bailout package on the order of  50 trillion yen ($545 billion), but has been unable to get it passed in parliament.<ref>Hiroku Tabuschi, "Japan’s Economy Plunges at Fastest Pace Since ’74," [http://www.nytimes.com/2009/02/16/business/worldbusiness/16yen.html?ref=business ''New York Times'' Feb. 15, 2009]  </ref>

The economies in Europe and Russia are headed down, as are most third world countries. Eastern Europe is very hard hit, as is Ireland and Iceland.  Economic growth in China continues at a much lower pace than usual, throwing tens of millions out of work there.  The oil producing nations have seen their revenues plunge with the decline of oil prices.

The economies in Europe and Russia are headed down, as are most third world countries. Eastern Europe is very hard hit, as is Ireland and Iceland.  Economic growth in China continues at a much lower pace than usual, throwing tens of millions out of work there.  The oil producing nations have seen their revenues plunge with the decline of oil prices.

==U.S. Politics==

==U.S. Politics==

The Obama Administration has been basing its domestic policies on the assumption that the stimulus package passed in February, 2009, will turn around the economy.  The stimulus money has been spent slowly and little impact is visible by October.  The Treasury assumes that the tax revenue will be there to fund [[Direct spending|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.  The deficit for fiscal 2009 (which began Oct. 1 2008 and ended Sept. 20, 2009, covering both Bush and Obama terms) is an astonishing $1.4 trillion, or 10% of GDP.

The Obama Administration has been basing its domestic policies on the assumption that the stimulus package passed in February, 2009, will turn around the economy.  The stimulus money has been spent slowly and little impact is visible by October.  The Treasury assumes that the tax revenue will be there to fund [[Direct spending|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.  The deficit for fiscal 2009 (which began Oct. 1 2008 and ended Sept. 20, 2009, covering both Bush and Obama terms) is an astonishing $1.4 trillion, or 10% of GDP.