Obama’s First Term

Learning Objectives

  • Describe how Barack Obama’s domestic policies differed from those of George W. Bush

In 2008, American voters, tired of war and dispirited by the economic downturn, elected a relative newcomer to the political scene who inspired them and made them believe that the United States could rise above political partisanship. Barack Obama’s story resembled that of many Americans: a multicultural background; a largely absent father; a single working mother; and care provided by maternal grandparents. As president, Obama would face significant challenges, including managing the economic recovery in the wake of the Great Recession, fighting the war on terror inherited from the previous administration, and implementing the healthcare reform upon which he had campaigned.

Obama Takes Office

Born in Hawaii in 1961 to a Kenyan father and an American woman from Kansas, Obama excelled at school, going on to attend Occidental College in Los Angeles, Columbia University, and finally Harvard Law School, where he became the first Black president of the Harvard Law Review. As part of his education, he also spent time in Chicago working as a community organizer to help those displaced by the decline of heavy industry in the early 1980s. Obama first came to national attention when he delivered the keynote address at the 2004 Democratic National Convention while running for his first term in the U.S. Senate. Just a couple of years later, he was running for president himself, the first Black nominee for the office from either major political party.

A photograph shows John and Cindy McCain and Sarah and Todd Palin standing at a lectern, surrounded by supporters holding “McCain / Palin” signs.

Figure 1. John McCain (on the far right) campaigns with his wife Cindy (in green), Sarah Palin (in black), and Palin’s husband Todd. Palin was a controversial choice for running mate. The campaign never succeeded in erasing the charges that she was ignorant of foreign policy, an impression she enforced in her own ad-lib statements. (credit: Rachael Dickson)

John McCain

Obama’s opponent in 2008 was John McCain, a Vietnam veteran and Republican senator with the reputation of a maverick who had occasionally broken ranks with his party to support bipartisan initiatives. The senator from Arizona faced a number of challenges. As the Republican nominee, he remained closely associated with the two disastrous foreign wars initiated under the Bush administration. His late recognition of the economic catastrophe on the eve of the election did not help matters and further damaged the Republican brand at the polls. At seventy-one, he also had to fight accusations that he was too old for the job, an impression made even more striking by his energetic young challenger. To minimize this weakness, McCain chose a young but inexperienced running mate, Governor Sarah Palin of Alaska. This tactic backfired, however, when a number of poor performances in television interviews convinced many voters that Palin was not prepared for higher office.

Senator Obama, too, was criticized for his lack of experience with foreign policy, a deficit he remedied by choosing experienced politician Joseph Biden as his running mate. Unlike his Republican opponent, however, Obama offered promises of hope and change. By sending out voter reminders on Twitter and connecting with supporters on Facebook, he was able to harness social media and take advantage of grassroots enthusiasm for his candidacy. His youthful vigor drew independents and first-time voters, and he won 95 percent of the Black American vote and 44 percent of the White vote.

A photograph shows Barack Obama taking the oath of office beside Michelle Obama.

Figure 2. Barack Obama takes the oath of office as the forty-fourth president of the United States. Standing next to him is First Lady Michelle Obama. Like her husband, she graduated from Harvard Law School.

Politicking in a New Century

Barack Obama’s campaign seemed to come out of nowhere to overcome the widely supported frontrunner Hillary Clinton in the Democratic primaries. Having won the nomination, Obama shot to the top with an exuberant base of youthful supporters who were encouraged and inspired by his appeal to hope and change. Behind the scenes, the Obama campaign was employing technological innovations and advances in social media to both inform and organize its base.

Reaching Young Voters

The Obama campaign realized early that the key to political success in the twenty-first century was to energize young voters by reaching them where they were: online. The organizing potential of platforms like Facebook, YouTube, and Twitter had never before been tapped and they were free. The results were groundbreaking. Using these social media platforms, the Obama campaign became an organizing and fundraising machine of epic proportions. During his almost two-year-long campaign, Obama accepted 6.5 million donations, totaling $500 million. The vast majority of online donations were less than $100. This accomplishment stunned the political establishment, and they have been quick to adapt. Since 2008, nearly every political campaign has followed in Obama’s footsteps, effecting a revolution in campaigning in the United States.

A young boy touching President Obama's head as he bends over in front of him.

Figure 3. A  White House staffer, Carlton Philadelphia, brought his family to the Oval Office for a farewell photo with President Obama. Carlton’s son softly told the President he had just gotten a haircut like President Obama, and asked if he could feel the President’s head to see if it felt the same as his. May 8, 2009.  (Official White House photo by Pete Souza)

President Obama’s first term was marked by domestic affairs, especially his efforts to combat the Great Recession and to pass a national healthcare law. Obama came into office as the economy continued to deteriorate. He continued the bank bailout begun under his predecessor and launched a limited economic stimulus plan to provide government spending to reignite the economy.

Economic and Healthcare Reforms

Barack Obama had been elected on a platform of healthcare reform and a wave of frustration over the sinking economy. As he entered office in 2009, he set out to deal with both. Taking charge of the TARP program instituted under George W. Bush to stabilize the country’s financial institutions, Obama oversaw the distribution of some $7.77 trillion designed to help shore up the nation’s banking system. Recognizing that the economic downturn also threatened major auto manufacturers in the United States, he sought and received congressional authorization for $80 billion to help Chrysler and General Motors. The action was controversial, and some characterized it as a government takeover of industry. The money did, however, help the automakers earn a profit by 2011, reversing the trend of consistent losses that had hurt the industry since 2004. It also helped prevent layoffs and wage cuts. By 2013, the automakers had repaid over $50 billion of bailout funds. Finally, through the 2009 American Recovery and Reinvestment Act (ARRA), the Obama administration pumped almost $800 billion into the economy to stimulate economic growth and job creation.

Healthcare Reform

More important for Obama supporters than his attempts to restore the economy was that he fulfill his promise to enact comprehensive healthcare reform. Many assumed such reforms would move quickly through Congress, since Democrats had comfortable majorities in both houses, and both Obama and McCain had campaigned on healthcare reform. However, opposition groups saw attempts at reform as an opportunity to put the political brakes on the Obama presidency. After months of political wrangling and condemnations of the healthcare reform plan as socialism, the Patient Protection and Affordable Care Act was passed and signed into law.

A photograph shows President Obama signing the Patient Protection and Affordable Care Act as Vice President Biden, Speaker of the House Nancy Pelosi, Senate Majority Leader Harry Reid, and others look on.

Figure 4. President Obama signs the Patient Protection and Affordable Care Act into law on March 23, 2010, as Vice President Biden, Speaker of the House Nancy Pelosi, Senate Majority Leader Harry Reid, and others look on. (credit: Pete Souza)

The act, which created the program informally known as Obamacare, represented the first significant overhaul of the American healthcare system since the passage of Medicaid in 1965. Its goals were to provide all Americans with access to affordable health insurance, to require that everyone in the United States acquire some form of health insurance, and to lower the costs of healthcare. The plan, which made use of government funding, created private insurance company exchanges to market various insurance packages to enrollees.

Although the plan implemented the market-based reforms that they had supported for years, Republicans refused to vote for it. Following its passage, they called numerous times for its repeal, and more than twenty-four states sued the federal government to stop its implementation. Discontent over the Affordable Care Act helped the Republicans capture the majority in the House of Representatives in the 2010 midterm elections. It also helped spawn the Tea PartyThe Tea Party became a catch-all term for a diffuse movement of fiercely conservative and politically frustrated American voters. Typically Whiter, older, and richer than the average American, flush with support from wealthy backers, and clothed with the iconography of the Founding Fathers, Tea Party activists registered their deep suspicions of the federal government. Tea Party protests dominated the public eye in 2009 and activists steered the Republican Party far to the right, capturing primary elections all across the country.

The Election of 2012

In 2009, President Barack Obama deployed seventeen thousand additional troops to Afghanistan as part of a counterinsurgency campaign that aimed to “disrupt, dismantle, and defeat” al-Qaeda and the Taliban. Meanwhile, U.S. Special Forces and CIA drones targeted al-Qaeda and Taliban leaders. In May 2011, U.S. Navy Sea, Air and Land Forces (SEALs) conducted a raid deep into Pakistan that led to the killing of Osama bin Laden. The United States and NATO began a phased withdrawal from Afghanistan in 2011, with an aim of removing all combat troops by 2014.

A photograph shows Mitt Romney speaking at a lectern.

Figure 5. Former governor of Massachusetts Mitt Romney became the first member of The Church of Jesus Christ of Latter-Day Saints (also known as the Mormon Church) to run for president. He claimed his experience as a member of the Mormon lay clergy had made him sympathetic to the needs of the poor, though that claim was disputed. (credit: Mark Taylor)

Mitt Romney

By the 2012 presidential election, the Republicans, convinced Obama was vulnerable because of opposition to his healthcare program and a weak economy, nominated Mitt Romney, a well-known business executive-turned politician who had earlier signed healthcare reform into state law as governor of Massachusetts. Romney had unsuccessfully challenged McCain for the Republican nomination in 2008, but by 2012, he had remade himself politically by moving towards the party’s right-wing and its newly created Tea Party faction, which was pulling the traditional conservative base further to the right with its strong opposition to abortion, gun control, and immigration.

Romney appealed to a new attitude within the Republican Party. While the percentage of Democrats who agreed that the government should help people unable to provide for themselves had remained relatively stable from 1987 to 2012, at roughly 75 to 79 percent, the percentage of Republicans who felt the same way had decreased from 62 to 40 percent over the same period, with the greatest decline coming after 2007. Indeed, Romney himself revealed his disdain for people on the lower rungs of the socioeconomic ladder when, at a fundraising event attended by affluent Republicans, he remarked that he did not care to reach the 47 percent of Americans who would always vote for Obama. He accused them of being dependent on government, paying no income taxes, and feeling entitled.

Link to Learning

Read the transcript of “On the 47 percent,” the secretly recorded speech given by Mitt Romney at a Republican fundraiser.

Starting out behind Obama in the polls, Romney significantly closed the gap in the first of three presidential debates, when he moved towards more centrist positions on many issues. Romney acknowledged climate change and proposed an energy plan to make the U.S. less dependent on foreign oil. he also supported deregulating financial industries and wanted significant revisions to Obamacare. He voted against Obamacare in Congress but spoke highly of a similar program for near-universal healthcare that he helped pass while governor of Massachusetts in 2006.

Obama regained momentum in the remaining two debates and used his bailout of the auto industry to appeal to voters in the key states of Michigan and Ohio. Romney’s remarks about the 47 percent hurt his position among both poor Americans and those who sympathized with them. A long-time critic of FEMA who claimed that it disaster relief responsibility should be given to the states, Romney also likely lost votes in the Northeast when, a week before the election, Hurricane Sandy devastated the New England, New York, and New Jersey coasts. Obama and the federal government had largely rebuilt FEMA since its disastrous showing in New Orleans in 2005, and the agency quickly swung into action to assist the 8.5 million people affected by the disaster.

Obama won the election, but the Republicans retained their hold on the House of Representatives and the Democratic majority in the Senate grew razor-thin. Political bickering and intractable Republican resistance, including a 70 percent increase in filibusters over the 1980s, a refusal to allow a vote on some legislation, such as the 2012 jobs bill. The glacial pace at which the Senate confirmed the President’s judicial nominations created political gridlock in Washington, interfering with Obama’s ability to secure any important legislative victories. Romney later returned to government as a senator from Utah and gained notoriety as a Republican who was highly critical of President Donald Trump.

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Glossary

Obamacare: the Patient Protection and Affordable Care Act

Tea Party: a conservative movement focused primarily on limiting government spending and the size of the federal government