Obamanomics

AAA

DEFINITION of 'Obamanomics'

A buzzword used to describe the economic philosophies of United States President Barack Obama. While Obamanomics encompasses all of President Obama’s policies and proposals, it is often used to refer primarily to his philosophy that the rich should pay their fair share of taxes, or what his detractors derisively call the “redistribution of wealth". Obamanomics may also include the President’s views on healthcare reform, although this often goes by the separate moniker of “Obamacare". Depending on one’s political persuasion, the term “Obamanomics” can be interpreted in a positive or negative light.

INVESTOPEDIA EXPLAINS 'Obamanomics'

While similar terms have been used to describe the economic policies of past Presidents, “Obamanomics” is arguably the most widely used term to describe a President’s policies since the days of “Reaganomics".

There are significant differences between the two, however. Critics of Obamanomics opine that apart from higher taxes on the wealthy, these policies call for more government intervention in the economy. This is diametrically opposite to “Reaganomics”, President Reagan’s supply-side policies that resulted in lower taxes for upper income levels and fewer government regulations.

Supporters of Obamanomics claim that given the dire financial situation of the U.S. economy – characterized by a soaring fiscal deficit and the strains put on Medicare by an aging population – President Obama has no choice but to make the tough decisions that will put the economy back on track.
 

RELATED TERMS
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  2. Fiscal Cliff

    A combination of expiring tax cuts and across-the-board government ...
  3. Bush Tax Cuts

    A series of temporary income tax relief measures enacted by President ...
  4. Kremlinomics

    A financial buzz word used to describe economic policies which ...
  5. Rose-Colored Recession

    The unexpected optimism market observers sometimes experience ...
  6. Clinton Bond

    A debt investment that is said to have no principal, no interest ...
RELATED FAQS
  1. What role does the Inspector General play with the Securities and Exchange Commission?

    The inspector general of the U.S. Securities and Exchange Commission (SEC) oversees, audits and conducts investigations of ... Read Full Answer >>
  2. What is a private secondary market?

    Two kinds of private secondary markets exist. The first is a form of buying and selling of pre-existing financial commitments ... Read Full Answer >>
  3. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.?

    Medicare and Medicaid have enormous influence on the pharmaceutical, or drugs, sector in the United States. For instance, ... Read Full Answer >>
  4. What are the ethical arguments against government subsidies to companies like Tesla?

    The ethical argument behind government subsidies is that they should be put into place to help industries that will, in turn, ... Read Full Answer >>
  5. Has deregulation helped or hurt the profitability of companies in the telecommunications ...

    Deregulation is almost always a double-edged sword in terms of business profitability. The profits of legally protected monopolies ... Read Full Answer >>
  6. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    The Financial Accounting Standards Board (FASB) promulgates generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
Related Articles
  1. Insurance

    Talk Is Cheap: Campaign Promises And The Economy

    A president's campaign trail promises often come up against economic reality.
  2. Economics

    Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  3. Economics

    The History Of Economic Thought

    Economics is a vital part of every day life. Discover the major players who shaped its development.
  4. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  5. Taxes

    Do Tax Cuts Stimulate The Economy?

    Learn the logic behind the belief that reducing government income benefits everyone.
  6. Economics

    Cashing In On Macroeconomic Trends

    Learn to identify the things that may impact your investments down the road.
  7. Taxes

    Should The U.S. Switch To A Flat Tax?

    Some countries have begun charging a flat tax rate instead of the gradual tax system of the Western world.
  8. Active Trading

    Market Cycles: The Key To Maximum Returns

    You need to understand the various phases of the market cycle to avoid bubbles and make the best investments.
  9. Bonds & Fixed Income

    Can Keynesian Economics Reduce Boom-Bust Cycles?

    Learn about a British economist's proposed solution to a common economic problem.
  10. Insurance

    Free Markets: What's The Cost?

    Some argue that when the free market fails to protect consumers, government regulation is required.

You May Also Like

Hot Definitions
  1. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  2. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  3. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  4. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  5. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  6. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!