The Obama Presidency and the Great Recession: Political Economy, Ideology, and Public Policy

Abstract

Barack Obama campaigned for and was elected president amidst an economic and financial crisis many called the worst since the 1930s and during a dramatic drop in support for the incumbent Bush administration. Many liberal and progressive voters hoped that the crisis of capitalism would lead to a sharp break with neoliberal public policies on the domestic front, perhaps in the form of a “New New Deal.” What have been the results as we move towards the presidential campaign of 2012? This article explores the distinct nature of Obama's political economy and how it has shaped his approach to the economic stimulus, banking and financial regulation, and health care reform. It is argued that Obama's centrist approach, his quest for “business confidence,” and the clout of powerful private economic interests (“capital”) have resulted in as much continuity with, rather than departure from, neoliberalism.