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.
BREAKING DOWN '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.