Changes

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 [[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.

Obama's policies are delaying and retarding the inevitable economic recovery, keeping unemployment high even though the recession Obama inherited was similar to others in the past that gave way to rapid recoveries.<ref>http://online.wsj.com/article/SB10001424052748703278604574624711732528426.html</ref>

Obama's policies are delaying and retarding the inevitable economic recovery, keeping unemployment high even though the recession Obama inherited was similar to others in the past that gave way to rapid recoveries.<ref>http://online.wsj.com/article/SB10001424052748703278604574624711732528426.html</ref>

==Economists==

==Economists==

The vast majority of the world's economists and economic forecasters&#8212;whether liberal or conservative&#8212;were caught unaware by the [[housing bubble]] and the banking crisis. Nearly all misjudged the depth of the economic downturn; they were baffled by the inability of orthodox monetary policy administered by the Federal Reserve to prevent such a steep downturn. They could not agree on what, if anything, the government should do to halt it and return to recovery. By 2010, most economists are in general agreement with the Obama administration's Keynesian strategy. However, some say the government is not doing enough and is too cozy with the bankers, while others say that it is doing too much and warn about dangerous long-term consequences. There is no professional consensus on the details of what should be done to end the downturn, speed recovery, or prevent a recurrence.

The vast majority of the world's economists and economic forecasters&#8212;whether liberal or conservative&#8212;were caught unaware by the [[housing bubble]] and the banking crisis. Nearly all misjudged the depth of the economic downturn; they were baffled by the inability of orthodox monetary policy administered by the Federal Reserve to prevent such a steep downturn. They could not agree on what, if anything, the government should do to halt it and return to recovery. By 2010, most economists are in general agreement with the Obama administration's Keynesian strategy. However, some say the government is not doing enough and is too cozy with the bankers, while others say that it is doing too much and warn about dangerous long-term consequences. There is no professional consensus on the details of what should be done to end the downturn, speed recovery, or prevent a recurrence.