While health care reform has been drawing national attention, whether Obama's stimulus package is working is brought into question. According to the labor department, American unemployment rate surged to 10.2 percent in October, its highest level in 26 years, as the economy lost another 190,000 jobs.This sharp rise in unemployment created fresh tension into the debate over economic policy in Washington. Republicans point to elevated unemployment as proof that the Obama administration’s $787 billion spending package aimed at stimulating the economy had failed. Labor unions and some Democrats are calling for another round of spending to create more jobs. Democrats seemed to be more optimistic in terms of the economic situation, arguing that moderating pace of job lossess indicates that the economy is recovering.

On November 6th, "President Obama was expected to sign into law a hotchpotch of stealth stimulus measures". First,letting money-losing companies claim tax refunds against profits earned up to five years earlier and an extension to the tax credit for buying a home. Second, extending unemployment benefits for the unemployed to encourage workers to look for a job. In order to implement these two measures, the president would need more money. However, the U.S. deficits are well above the fiscally sustainable level and Congress is reluctant to spend more. Hence, it is unclear if this bill would be passed. What is more problematic to the Democrats is the defeat of democratic candidates in Virginia and New Jersey this Tuesday. In New Jersey , voters who considered health care the top issue went for Gov. Jon Corzine by a 4-to-1 margin; Chris Christie won voters who were concerned about property taxes and corruption.

These numbers signify that voters across America are deeply frustrated over local issues, taxes and government spending. As the Democrats face a huge challenge holding on to independent voters, they need to provide a national narrative that resonates both progressives and independents. To prevent a Republican wave in the midterms,Democrats will need to localize elections and make them a referendum on their opponents.