Presidency of Richard Carlson (2005-2009, foreign policy)

The most enduring legacy of Carlson's second term is the Quality Care Act, or Carlsoncare, a complement to the Medicare Modernization Act which doubled the deductibility of Health Savings Accounts (HSAs), boosted the bargaining power of small businesses with private insurers, and started the provision of healthcare vouchers for those below the poverty line.

He also abolished the Small Business Administration, and fought unsuccesful battles to reduce the powers of the Department of Education; they failed and federal education policy continues to supersede state policy as of 2023.

Carlson refused to cut or privatize Social Security or Medicare. The two programs remained federally funded, although Carlson did consider banning people over a certain income from recieving Medicare.

Carlson's administration frequently defended the use of torture against suspected terrorists at Guantanamo Bay, saying they deserved it for comitting acts of terrorism. Carlson openly mocked Democratic politicians who opposed torture; he also unsuccesfully sought to ratify the Federal Marriage Amendment and overturn "Don't Ask, Don't Tell".

After the US economy began to worsen in late 2007, Carlson shifted to the right economically, and began a push for further deregulation – in essence, doubling down on Reaganomics sans free trade. His response to the Lehman Brothers bankruptcy was to propose the bailout of small businesses rather than corporations, an idea signed into law under Hillary Clinton's first term.

Carlson left office with an approval rating of 40%, but he realigned American politics.