The Second Depression

2005
President Bush narrowly succeeds in the privatization of Social Security by 2 votes in the Senate.

2008
On September 1st, 2008, the US stock market saw its largest drop in history. By the 11th, with the collapse of major firms, Fanny Mae and Freddie Mac, the Dow Jones is at its lowest in decades, at 8,219. What follows over the course of several months is the implementation of the Troubled Assets Relief Program, that gives billions to the financial sector. On November 9th, reports come in masse of millions of Americans reporting that their health care claims, and social security benefits have been denied by the private insurers. President Bush's popularity falls to as low as 8%, and calls for impeachment are higher than ever before. Barack Obama announces a change in his Health Care policy, promising that he will push for the passage of Single Payer, universal healthcare upon entering office.

2009
Barack Obama is sworn in as president of the United States, the Dow Jones is now at 3,905. Over 150 million Americans are without healthcare or social security. The Democrats have a supermajority in both houses of Congress, and their even are a few Socialist and Green Party candidates present. Ron Paul looses his seat in Texas. On January 19th, President Obama signs the American Economic Recovery and Reinvestment Plan into law. Far more radical than in OTL, the stimulus package costs over a trillion dollars. The plan includes huge tax increases on people making over 250,000 per year, and spends hundreds of billions on infrastructure projects. Immediately following this bill is the Recreational Drug Act, which legalizes cannabis, but puts a flat tax on all recreational drugs of roughly 50%. Cannabis grown in the US is still cheaper than Cartel Cannabis, and causes the Cartels to be marginalized and crippled by a US Cannabis industry. Unemployment is dropping again, but is still at 22%.