President Obama’s proposal to curb offshore corporate tax havens is just the latest example of what has become a permanent feature of the American political landscape: The drive to reform the tax structure. Both major parties constantly tout changes they say would make the system better for the economy, more equitable, or just plain easier to follow.

Gross domestic product (GDP), the output of goods and services produced by labor and property located in the United States, decreased at the annual rate of 6.1 percent in the first quarter of 2009, according to advance estimates released by the Bureau of Economic Analysis. This decrease is only slightly smaller than the 6.3 percent drop in GDP in the fourth quarter of 2008 and represents the third consecutive quarter of GDP decline.

Chrysler has declared bankruptcy, and General Motors may soon follow. Will taxpayers be expected to cover the costs of the pensions the companies promised their workers? The pension shortfall for GM alone is estimated at $13.5 billion.

The current recession is shaping up to be one of the worst in postwar history. And recent data show no signs of improvements in business-cycle conditions.  

The outbreak in Mexico of a new strain of the deadly swine flu has raised the specter of a global pandemic. Although details are still emerging about the new virus, as of this writing it appears to have sickened about 1,600 people in Mexico and killed as many as 152. In this country, the first 20 diagnosed cases, one of which required hospitalization, prompted an emergency declaration from Homeland Security Secretary Janet Napolitano. The U.S. total of confirmed cases now stands at 50. Additional cases have been reported in Canada, Spain, and New Zealand. Other nations also are reporting possible incidences of swine flu. And organizations around the globe have put in place various quarantines and travel advisories in an effort to prevent the spread of the disease.

Ten things you didn’t know about the energy situation in the United States:

Local governments are scrambling for a piece of the $787 billion in stimulus money made available through the American Reinvestment and Recovery Act. The funds aim keep municipalities afloat by bolstering social programs, shoring up vital municipal services such as fire and police, and boosting local jobs and business through infrastructure projects.

The federal government seems to be coming to the aid of America’s beleaguered cities in a time of great need, but the reality is that cities and towns have for some time relied heavily on the federal government and the states. Ever since general revenue sharing took off in the 1970s, local governments have received around 38-40 percent of their general revenues from the federal government and the states.

President Obama wants to preserve an American automobile industry. Well, here’s good news for him. There will be an American-owned to industry in the future. Absolutely. It will be named The Ford Motor Company. Most of the car plants here will be foreign-owned, but Ford will keep our flag flying.

Now everything is still in a state of flux. General Motors may go bankrupt. Chrysler may be bought by foreigners. Car sales are still terrible and the President’s Office of People-Who-Are-Smarter-Than-You (thank you David Brooks of The New York Times for discovering that office) still mistakenly thinks the American people will line up to buy tiny but terribly expensive electric cars that won’t run far and take hours to recharge.

Thus what I’m predicting could change. But we are beginning to get an idea of what will happen to this major industry.

The stock market is a leading indicator of business activity. It usually peaks before recessions begin and starts to increase before recessions end. In the postwar era, the S&P 500, adjusted for price inflation, has been remarkably consistent: In seven of ten recessions, it hit bottom four or five months before the recession ended. Thus, the increase since early March in the S&P 500 and major stock indexes is an encouraging sign.