Economic and Technological Impact in the Obama Era: Social Networking, Transparency and Public Sector Learning

The financial crisis of 2007-2010 began prior to the election of President Barack Obama. It is widely viewed as the worst fiscal crisis since the Great Depression of the 1930s. It was a result of severe shortfalls in the United States banking system and led to a collapse of large financial institutions and downturns in stock markets worldwide. These challenges also resulted in a crisis in the housing market, declines in consumer wealth, and declines in overall economic activity, all of which have adversely affected local governments and citizens across every race, gender, and class in many ways. The collapse also spurred protest movements fueled by technological innovations and the involvement of well-educated middle class youth. This article explores the breadth and depth of the crisis and its specific impacts on local governments and their citizens. It also examines how local governments responded to these fiscal challenges and identifies which actions governments implemented across the board and the targeted budget cuts taken during the economic recession. It also examines the role of technology and transparency in the Obama Era in mounting citizen responses designed to address dire economic conditions in a way that we have never seen before. This article discusses the organizational changes made through advances in technology, and—using events and revolutions in the Middle East as examples—favorably argues that governments with appropriate, transparent measures of accountability are more likely to receive support from citizens and financial communities for such measures.