Economic policy of Barack Obama

The economic policy of the Barack Obama administration was characterized by moderate tax increases on higher income Americans designed to fund healthcare reform, reduce the federal budget deficit, and improve income inequality. His first term (2009–2013) included measures designed to address the Great Recession and Subprime mortgage crisis, which began in 2007. These included a major stimulus package, banking regulation, and comprehensive healthcare reform. As the economy improved and robust job creation continued during his second term (2013–2017), the Bush tax cuts were allowed to expire for the highest income taxpayers and a spending sequester (cap) was implemented, to further reduce the deficit back to typical historical levels. Towards the end of his tenure, the U.S. economy was nearing full employment such that the Federal Reserve began raising interest rates, real household income was nearing its pre-crisis peak, gas prices were very low, and GDP grew 3.5%. He also implemented several environmental executive orders to address climate change and encourage clean energy industries, as the U.S. enjoyed an unprecedented increase in energy production. Both the stock market and corporate profits reached record high levels during his tenure, while inflation and interest rates remained near record low levels.

Conceptually, Obama advocated using government regulation to stem crony capitalism and tax revenue to stabilize and promote economic growth. Two of his important economic advisers were Jason Furman of Harvard University and Jeffrey Liebman of Harvard University. In 2006, Obama wrote, "We should be asking ourselves what mix of policies will lead to a dynamic free market and widespread economic security, entrepreneurial innovation and upward mobility [...] we should be guided by what works." Speaking before the National Press Club in April 2005, he defended the New Deal social welfare policies of Franklin D. Roosevelt, associating Republican proposals to establish private accounts for Social Security with Social Darwinism.

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