Today the Senate passed its version of the stimulus bill. The House version of the American Recovery and Reinvestment Act has a price tag of about $820 billion while the Senate version stands at a total of $838 billion. Now the two versions will have to be reconciled and signed by President Obama.

During the presidential election the domestic policy of most concern to voters, other than the economy, was healthcare. President Obama ran on a campaign of implementing sweeping healthcare reform aimed at improving both efficiency and access. House Majority Whip James Clyburn has been quoted as saying it is better for reform to occur, “incrementally, than to go out and just bite something you can't chew,” to which Speaker Pelosi had to rebut. While the current financial crisis may offer an opportunity to move towards universal coverage and an overhaul of the U.S. healthcare system, it is more likely that Obama’s first term (at least the first fiscal year) will be witness to incremental reform.

This week the world’s most powerful leaders meet in Davos, Switzerland for the World Economic Forum. As an indication of the changing times, this year’s summit will be attended by 40 heads of state, as compared to only 27 last year. More regulation lies ahead and undoubtedly there needs to be a balance between purposeful, tough regulation and free-market oriented solutions.

Short-term profits, irrespective of potential long-term catastrophes, have pushed the U.S. economy into recession and the financial markets in to a standstill. Spending on healthcare as a whole is currently 16.2 percent of GDP, while Medicare alone is approximately 3.2 percent of GDP. As the economy slows, however, expenditures on healthcare seem to consume an ever-increasing percentage. Medicare, along with the other entitlement programs, need serious reform if the current economic stimulus package and other economic reforms are to have any lasting effects.

Many are up in arms about President Bush’s decision to allocate up to $17.4 billion of TARP money to the U.S. automakers, and rightly so. However, this only represents about 5 percent of the first $350 billion of TARP funds. The real issue at hand is why the economy, and specifically credit markets, has yet to improve despite all of the government’s efforts.

“Watch, we’re gonna have an international crisis, a generated crisis, to test the mettle of this guy.” Vice President-Elect Joe Biden said these words only several weeks ago and it seems, at least in part, that his prophecy has come true. The recent terrorist attacks in Mumbai, India are really a test for not only President-Elect Obama, but for the world. The manner in which all parties involved choose to respond to these attacks may well determine the course of the War on Terror.

This week the CEO’s of the Big Three (GM, Ford and Chrysler) begged Congress for money, as they flew into Washington on their private jets. Congress has correctly denied funding and now the Big Three are left on their own. However, Congress should help out U.S. auto manufacturers, but not by providing them money outright. Congress should promote Chapter 11 bankruptcy by the automakers, encourage them to revamp their business models and provide adequate funding and programs for any employees adversely affected by the bankruptcy.

Barack Obama’s win was undoubtedly a proud moment for all Americans, regardless of where you may fall on the political spectrum. The Democratic wins for control of both the executive and legislative branches are a rebuke of the previous years of Republican control. However, Lee Blum urges us to remember that Obama was elected not only as the “change” candidate, but as the pragmatic candidate. And in spite of the Democratic wins, this country is not really as liberal as many on the extreme left may believe.

The 2008 federal budget deficit is about $455 billion and the 2009 federal budget deficit is projected to be anywhere from $700 billion to an extremely liberal estimate of $1 trillion. That's pretty scary, no doubt about it, by Blum sheds a bit of light on what it really means, relatively speaking. It turns out it's not something to be too worried about.

Obama's tax plan may sound good, but did you know it allows total tax liability to be reduced to below zero? Say that a couple pays $1,000 in income taxes per year. Assuming that there is a $2,000 refundable tax credit and that this couple qualifies for the tax credit, the couple would receive a check from the government in the amount of $1,000, according to Obama’s plan. The Tax Foundation also estimates that approximately 44 percent of all tax filers will have zero income tax liability under this proposal. Blum further discusses this very pertinent issue in his blog, focusing in on the true effects of the Obama tax plan.