By the end of 2008 the economy was in a severe downturn, with unemployment increasingly rapidly, and this contributed to victories by the Democratic Party in Congress and the presidency. 43 out of 50 states had a budget deficit (more expenses than revenue), and since nearly all states have laws requiring them to balance their budget, they need to cut back the programs and lay off government workers. The federal government itself faces a large deficit and congressmen are considering a "stimulus package" to spark economic improvement, as President FDR did (unsuccessfully) with the New Deal. | By the end of 2008 the economy was in a severe downturn, with unemployment increasingly rapidly, and this contributed to victories by the Democratic Party in Congress and the presidency. 43 out of 50 states had a budget deficit (more expenses than revenue), and since nearly all states have laws requiring them to balance their budget, they need to cut back the programs and lay off government workers. The federal government itself faces a large deficit and congressmen are considering a "stimulus package" to spark economic improvement, as President FDR did (unsuccessfully) with the New Deal. |