Tag Archives: President Obama Economy

The Failure of Obamanomics

Obama failures

net-worth-chart-2009-11The strongest component of the Federal Reserve’s Leading Economic Indicators currently is stock market performance. Such equity strength is more a case of artificial stimulation by the Federal Reserve through Quantitative Easing and the cozy relationship between Washington and Wall Street than it is a sign of a healthy economy or White House policies that have been conducive to growth. After nearly six years of President Obama’s economic policies, there is unmistakable evidence that White House policies have severely hampered economic viability.

The middle class real median household income in 2012 was less than it was at the end of the ’80s, and it’s down 9 percent from its high in 1999. The biggest portion of that decline, 8.3%, came in just the past five years.

6a00e54ecbb69a8833019104b3ec19970c-800wiThe median net worth of a family in 2010 was $77,300, compared to $126,400 just three years earlier. In 46 of our 50 states, the poverty rates have increased over the past six years, and the national poverty rate is over 15% for the fourth year running. The last time that happened was in 1965. More and more families are dropping from the ranks of the middle class into poverty.

One of the greatest factors adversely affecting median household income and net worth is the loss of jobs and extended unemployment. According to the Bureau of Labor Statistics (BLS) the Participation Rate, which is represented as a ratio or a percentage of the total population, is at the lowest levels in 50 years, with about 62.8% of the population working. According to the BLS U-6 data, 13% of the population is still unemployed or underemployed, and marginally attached to the labor market.

The job situation is directly effected by administration policies, and will not improve appreciably until the cost of doing business starts dropping. Last year the Small Business Administration reported that regulation costs American business $1.75 trillion per year, and costs small businesses as much as $10,585 per employee. Just the costs of Obamacare, Financial Regulatory Reform, and new EPA regulations, are projected to increase that cost per employee as much as 30%, according to Investor’s Business Daily.

37242E8628A0435CBA8B05A16E7BCE50In 2012, the President said, “This country doesn’t succeed when we only see the rich getting richer. We succeed when the middle class gets bigger. We grow our economy not from the top down, but from the middle out.” He was correct. But none of his policies have done what he gives such great lip service to.

In spite of the president’s consternation over income inequality, the income gap has increased exponentially under Obamanomics. As MSN Money declares, “The top one percent of Americans — those earning above $366,623 a year — have taken 81 percent of the fruits of the recovery. And the top 0.01 percent — earning about $8 million a year — took an astonishing 39 percent of the growth.”

Worst Post-Recession Recovery

Worst Post-Recession Recovery

Let’s look at the economy in general. The National Bureau of Economic Research officially scored the recession as ending in June, 2009, just five months after Obama’s inauguration. Historically, the nation has rebounded with significant growth coming out of a deep recession, but this has been the most tepid recovery in the last 100 years according to Forbes. They point out, “Under President Obama the American people have now suffered the worst 5 years since the Great Depression.”

Steve McCann of the American Thinker earlier this year wrote, “Instead what America got by year five was fewer jobs than before. Even though the employment age population has increased by nearly 12 million since January, 2008, there are now 3 million fewer Americans working, with employment declining from 146.3 million in January, 2008 to 143.3 million in December, 2012. If America enjoyed the same labor force participation rate as in 2008, the unemployment rate in December, 2012 would have been 11.4%, compared to 4.9% in December, 2007.”

OG-AB775_GDP061_G_20140625093832The latest revision of 1st quarter GDP growth was adjusted downward to -2.9%. Another quarter of negative growth, or economic contraction, and we’ll be officially in another recession, and it will be primary due to the policies that have restricted job growth, saddled the private sector with an average 91,000 pages of new regulation per year added to the Federal Register, and decimated the middle class.

Every one of these data are adversely affected by policies of the administration over the past six years. There have been precious few initiatives implemented that have facilitated free market principles in an attempt to augment economic expansion, job growth, or reduced fiscal burdens bourn increasingly by the middle class. Instead we’ve had nearly 550,000 pages of new regulation added to the Federal Register, and dozens of Executive Orders that have stymied the engine of capitalism that fuels the country.

The new Dow Jones Industrial Average record reached last week is good for investors, but belies the broad-based weakness in the general economy. With two years left of this administration that is so averse to free markets, a substantive and vibrant economic recovery will likely be elusive for the foreseeable future.

Associated Press award winning columnist Richard Larsen is President of Larsen Financial, a brokerage and financial planning firm in Pocatello, Idaho and is a graduate of Idaho State University with degrees in Political Science and History and coursework completed toward a Master’s in Public Administration. He can be reached at [email protected].

 

Obama visit amazes Ohio and America with audacity of hopelessness

You do not have to be a political genius to understand that if the state of Ohio falls out of the President’s win column in November, he and Michelle will be packing their bags and heading back to Chicago faster than he can say, “Oh no they didn’t!”

Wednesday, the president went to several key democrat voter strongholds in Ohio, in order to reinforce a political firewall against a probable loss of the state of Ohio. The cities of Akron and Mansfield are crucial to the Ohio democrat voter bean counters. Their campaign goal is to continue to mystify the voters in Ohio in believing that they should care more about what Mitt Romney did in the private sector and his tax returns.

Meanwhile, these same voters are suppose to magically ignore the fact that empty unfulfilled Obama promises do not put bread on the table, nor does has it created non-existent jobs. Can these Akron voters take the president’s non-existent tax breaks to the mortgage company to stave off a foreclosure? Let your neighbors know how you are able to convert rising family bills into an employment opportunity.

After all, the president had promised Ohio voters in 2008 that he would stop down from office if he had not improved the economy. Yet, when he had the chance, he ducks and dodges and ignores, or in other words, he drops the ball on the court in mid game. In fact, this caring president has been missing in action from his own Jobs Council for the last six months!

You know the one, where he would be using his appointed job experts to stimulate the private sector into reversing the worst economic downturn since, the 1930’s depression.

Well, Ohioans have to wonder how this alleged laser-focused president could have managed to not pick up his White House phone one time in the six months, to meet with his jobs council, while the nation’s families were sliding deeper, and deeper and deeper into financial ruin. This is the same president who told the Akron and Mansfield, Ohio “believers” that this horrendous economic stagnation is, “A crisis that robbed too many of our friends and our neighbors of their homes, their jobs, their savings.”

It is hard to believe that President Obama could say those words with a straight face, and still insist that he cares about the pain of Ohioans and families in the heartland. Who treats their “friends” like this, while he spent those same six months gallivanting across the nation to 100 plus fundraisers with millionaires, billionaires and Hollywood’s liberal elite.

Come on now, Mr. President, if you really cared about Ohio families, about Colorado families, about Virginia families, about Michigan families, couldn’t you have arranged a jobs council conference call meeting on your smart phone, while you were fundraising or golfing? Afraid not…so much for friendship and caring, right?

With less than 100 days left before the November election, each time Obama visits a swing state like Ohio, he proves that his narcissism and hubris grows even more. In fact if he were Pinocchio his nose would be longer that the Washington Monument is tall. His new catch phrase should be the Audacity of Hopelessness. Promises made, promises discarded, and promises un-kept…but with a smile.

So one has to wonder just what Ohio voters does he keep coming back to speak to. He and his campaign political handlers in Chicago have keyed in on the slow but steady economic comeback record in Ohio. But Mr. President, to borrow your phrase, “You didn’t build that!”

This gradual economic turnaround is being accomplished on republican governor John Kasich’s watch. In fact in every state that is seeing an economic turnaround, like Texas, Florida and Wisconsin are headed by republican governors. Again, Obama, “you did not build that!”

The president continues to fly around the nation from one swing state to another in search of a steady dwindling number of believers who support his reckless political fiats based upon an audacity of hopelessness. Democrat Voters in swing states are absolutely essential to Obama’s Electoral College win. Yet, the numbers of supporters, do not account for the growing resentment in Ohio’s and the nation’s African American community to Obama’s embrace of gay marriage and insistence that the black clergy back him up on this in their pulpits. Not so fast Mr. President. Those voters may not be there for you blindly protect your voter margins in Ohio, Florida, South Carolina and Virginia.

Of course Romney has his own problems, and recent state polls show his polls are down to just 42 percent of the vote in Ohio. Not good, when most of the difference between winning and losing is due to conservative Palin and Tea Party voters who are not exactly thrilled by his candidacy yet. In fact, it is the Palin voter support that could seriously make the difference of a Romney win or a Romney loss in Ohio, and therefore the presidency.

Here’s a suggestion, Obama, if you care so much about the unemployed in Ohio or Virginia, or Iowa or anywhere else in America, stop blaming Bush, because that’s real old now. Instead, start creating private sector jobs and cutting taxes.

At least give the appearance that you have the capacity to lead instead of feeding Americans your memorized tired rhythmic refrains. Your audacity of hopelessness is truly wearing thin in Ohio and everywhere else.

 

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