A Promised Land

Chapter 22 addresses Obama’s changing fortunes. Fallout over the ACA and criticism from the Tea Party sent his approval ratings plummeting. The press became more critical, as did Republicans, who accused him of being soft on terrorism. Obama’s biggest problem, however, was the economy. Despite massive bailouts, millions of Americans were still at risk of losing their homes and unemployment remained high. Seeing an opportunity, Republicans spread misinformation about the bailout, characterized the stimulus package as out-of-control liberal spending, railed about the deficit, and argued in favor of slashing the federal budget.

Job reports from March 2010 showed an improving US economy. However, Europe remained mired in recession, creating a drag on global recovery. Obama pushed the EU to adopt stimulus policies, but they favored austerity measures. The Greek debt crisis set off another round of financial panic. Obama and Geithner lobbied the European Central Bank and the IMF to produce a rescue package for the Greeks to stabilize the global economy. France and Germany continued to promote austerity, despite their role in creating the crisis. They eventually agreed to a joint EU-IMF loan, but only after the financial markets reached new lows.

To regain political momentum, Obama accelerated his plan to draft a Wall Street reform bill to make future financial crises less likely.