Inequality and Obama


Obama’s stimulus hurt the poor

There is a problem with income inequality in America; it has been going on for several decades now (even during Bill Clinton’s term).  No one, however, has made it a cornerstone of their campaign until Obama.  So what has Obama done about it?  After the bank meltdown, wealth plummeted, unemployment skyrocketed, profits were down, and the economy fell into recession.  Obviously this was a hard hand dealt to Obama.  Obama, through his Democratic House, filibuster proof Democratic Senate, executed his plan.  We can now see the effects.  As Obama continues to blame Bush for the stagnant unemployment, there is one thing that he does not take credit for:  expanding corporate profits, wealth of the one per cent, and rising CEO pay. 

After Obama’s stimulus, the percentage of people working has decreased, and poverty has increased.  There is absolutely no question about this. 

But what has happened under Obama to “rich guy” wealth?  According to the St. Louis Fed, prior to the meltdown, corporate profits were 1,300 Billion.  During the first two quarters of the recession, corporate profits fell to 700 Billion.  After Obama’s “corporate stimulus”, corporate profits have grown to 1,500 Billion.  All of this happened while the bottom 50% of wage earners have become less well off.  How did Obama pull this off?  He gave stimulus money to his donors, green energy investors (largely rich people), and Union pensions. Obama picked winners and losers with his stimulus money and the winners were rich guys, and the losers were the poor. What did George W. do when faced with the Clinton Gore recession and 9/11?  He gave stimulus money to everyone.  Everyone! Not his rich friends, but everyone.  What an evil guy.  But then again, Bush has a Harvard MBA, was a business owner, and a smart guy.  Obama was a community organizer who studied talking points, and maybe not that smart.  Obama looked at his friends, gave them tax dollars, and allowed them to loot their companies and lay off workers.  Now they argue that Bain Capital was evil.

Why was there no trickle down under Obamanomics?   Obama loaded up corporations with regulations, and an uncertain future.  He forced corporations to hang on to their money and buy Treasuries or to ship jobs overseas because of fear or government intervention.

 The cause of income inequality in America is not an economic problem.  It is a social problem. Therefore, it cannot be changed through economic policy.

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