In response to the 2008 financial crisis, which led to the government providing up to $700 billion in funds to save the financial sector (see the Emergency Economic Stabilization Act of 2008), 44th President Obama, with the backing of sizable Democratic majorities in the Senate and the House of Representatives, pushed through Congress a $787 billion stimulus package.
The plan was successful in stopping the sharp decline in GDP by the third quarter of 2009, leading to 2.2 percent annual growth. On the other hand, unemployment had also increased, rising to roughly 10% from 7.2% at Obama's inauguration. Republicans also claimed that the stimulus package was too expensive and increased the national deficit to $1.42 trillion.
Even so, it seemed that the US economy was slowly improving. The president could proudly point to General Motors' remarkable turnaround. After declaring bankruptcy in June 2009 and requiring the government to step in and provide $60 billion to save the company and acquire roughly three-fifths of its shares, the automaker turned a profit in May 2010 after implementing a new business plan.
44th President Obama eagerly anticipated "Recovery Summer," expecting the substantial federal investment in infrastructure-improvement programs to pay off in the form of jobs and economic stimulation. However, as the summer of 2010 wore on, the outlook for the economy appeared bleak, with unemployment remaining unchanged (in part due to the decline of temporary jobs associated with the decennial census).
While some economists contended that the stimulus package had been insufficient, others were concerned that a second recessionary trough was on the horizon. However, Congress did approve the largest financial regulation since the New Deal in July, giving 44th President Barack Obama reason to celebrate yet another significant legislative win (60–39 in the Senate and 237–192 in the House).
Among other things, the bill established a council of federal regulators to keep an eye on the financial system, subjected derivatives—the intricate financial instruments that contributed to the financial crisis—to government oversight, and gave the government the authority to seize and close down large, troubled financial firms.
Evaluating 44th President Obama's Strategies in the Wars in Iran and Afghanistan
Obama, like George W. Bush, was president during a time of war, despite his attempts to mend fences with a large portion of the world. 44th President Obama increased the American military presence in Afghanistan to 68,000 troops in February 2009 as the situation in Iraq continued to improve and the deadline for ending combat operations there drew near.
He had maintained throughout his campaign for president that the United States should concentrate its military efforts in Afghanistan rather than Iraq, and the military had asked Obama to send an extra 40,000 troops to the country in response to the Taliban's return to power. 44th President Obama decided to send an extra 30,000 troops after carefully assessing the situation for three months; many in his party opposed this decision.
In June 2010, with the Afghanistan War approaching its second year and American casualties surpassing 1,000, the president faced yet another challenge when members of his staff, including General Stanley Mc Chrystal, the commander of NATO-U.S. forces in Afghanistan, made mocking remarks about senior Obama administration officials to a Rolling Stone magazine reporter.
Obama removed Mc Chrystal from his position as commander and installed Gen. David Petraeus, who oversaw the surge plan in Iraq. The U.S. combat mission in Iraq ended on schedule in August, with the bulk of U.S. forces having been withdrawn, although 50,000 troops remained. 44th President Barack Obama emphasized the value of US and NATO efforts in Afghanistan in a televised national address commemorating the end of Operation Iraqi Freedom, despite the fact that corruption in the country was still undermining the Afghan people's confidence in their government.
Many political cartoonists and columnists quickly drew comparisons between President Lyndon B. Johnson's attempts to establish the Great Society and the possible risks that Obama's ambitious plans for social legislation would face from a protracted war in Afghanistan. There was talk in the summer of 2010 of a double-dip recession, and some claimed Obama had been too focused on the wars to give the economy the attention it needed.
44th President Obama became embroiled in a controversy regarding the construction of an Islamic center and mosque in New York City in close proximity to the site of the September 11, 2001, attacks, just before the fall midterm congressional election. The president initially responded by vehemently endorsing Muslim Americans' constitutional right to freedom of religion and expression, but he later appeared to vacillate over the mosque's location. All of this occurred at a time when surveys revealed that, contrary to popular belief, almost 20% of Americans thought Obama was Muslim, up from about 10% a year earlier.