Obama's Booming Economy

The Economy

Democratic talking heads always give the same spin.  We all have heard it about 500 times so far, and will probably hear it time and again.  “Obama has created 3 million jobs and has 26 (or whatever the spokesman says) months of consecutive job growth.”  “Obama faced the worst economic condition since the great depression”, and  “ … we don’t want to go back to the Bush policies that created these problems”..

Please, let’s go back to the Bush policies.  George W came into office facing the Clinton-Gore recession.  Of course, no one called it that, because most grown-ups don’t constantly blame everything on someone else.  Then, Bush had the Clinton Gore Al Qaeda attack of 9/11.  Oh, Bush didn’t blame that on Clinton?  Maybe he didn’t have the values of Barack Obama and the Democrats.  You can bet Obama would have blamed someone else—and then he would have blamed America and wanted to talk to the terrorists.  But I digress.  By Obama math, after the Clinton Recession, Bush had 37 months of job growth and the economy added 6.6 million jobs.  So what has Obama, the greatest president since Roosevelt done:  Since the last time the economy lost jobs in September 2010, it has now been 22 months—and jobs added, according to the US government labor statistics 2,666,000 jobs.  That is 120,000 a month.  That is not enough to keep pace with the population growth.  The only reason the jobless rate has not stayed above 10% is because of the number of people who have given up.  Is there a way to measure the number of poor people created by Obama?  Sure!  Check out the increase of the number of people on food stamps.  It continues to go up. Since his stimulus took hold (according to Obama) the number of people on food stamps has gone up by 5 million Even now, even with all the phony jobs created numbers.  What about personal income:  if we are doing so well in the Obama recovery, wouldn’t that number go up?  Well, of course it would.  But it continues to decline.  That is what I want for another for years:  more food stamps and less personal income.  How about the work force:  participation rate in the work force has fallen from 62% to 58%.  In other words, a lower percentage of people have jobs.  These numbers have not gotten better during Obama’s economy, not even after the stimulus, and not even now.  First quarter GPD growth was a paltry 2.2%.

Watching Jay Carney defend Obama, one gets the distinct impression that he actually believes Obama is doing well.  What one sees is a 12 year old kid defending his favorite movie star or sports team. He has never seen a recovery after a recession. He is inside the bubble listening to bunch of other people who likewise have never seen a recovery, or, until now have never watched employment numbers.  People who watch the economy have watched the employment number every first Friday of the month for decades:  this economy sucks.  It used to be that 6% unemployment was bad.  But Team Obama was never paying attention then.  They were in college learning about diversity, community organizing, or discussing the hope of green energy.

And what caused the collapse of the economy in 2008?  Bush tax cuts, a lack of government spending, draconian cuts to government spending?  Republicans being mean to women, blacks or Hispanics?  The Tea Party, the Republican Congress? Does no one remember?  It was the collapse of the Housing market.  Whose fault is that?  Bush—he gets some blame because he thought poor people should be able to buy homes.  What a mean guy!  Bush embraced a liberal policy, that, you guessed it, didn’t work and the bubble finally burst.  His intent was good:  more government help here and there.   Bush expanded Medicare benefits, and spent more and more on big government.  Is there anything wrong with this analysis? 

It was the housing bubble that caused the collapse.  Also to blame are Saint Bill Clinton, Fanny and Freddy,  Rep.  Barney Frank and Sen. Dodd and the Fed for housing bubble. The Bush tax cuts, like the Reagan tax cuts before them and the Kennedy tax cut before that actually increased revenue.  Not a problem there.  If revenue is up after tax cuts, and the deficit goes up, it is spending, not revenue that caused the problem.  Obama hopes there are enough people who are too dumb to look it up and will vote for more “Hope and Change.”

And what about:  “the worst economy since the great depression”.  Clinton campaigned on that phrase in 1992.  Obama is using it now.  Actually, it would correctly be the worst “Republican” economy since the great depression.  Reagan faced much worse after Carter, but apparently Carter doesn’t count.  Unemployment was higher, GDP growth was slower, and there was double digit inflation, thus making it harder to use the Fed like Obama has been able to.  And what did Reagan do.  I think we all know.  His job creation puts Obama to shame.   He cut taxes. Simplified the tax code, and deregulated.  Oh, and while he was at it, he defeated the “Evil Empire” and created a gazillion jobs.  Even Obama’s statement as to what a bad hand he was dealt, doesn’t justify his tepid economic record.  For the economic illiterates in the Obama bubble, in the three years after 1933, the economy grew with growth rates of 11 percent, 9 percent, and 13 percent.  But in 2010, when Obama starts touting his magnificent recovery, growth was about 3 percent, followed by 1.7 percent growth in 2011. The rate for 2012 will be about 2%.  Obama must be an economic genius to have done so well.

While we are talking about employment, think about this:  There are two places in America.  One has basically private land, no stimulus, and Republican government. The other has lots of stimulus, lots of labor unions, lots of bail outs, and has been solidly Democrat for decades.

North Dakota has an unemployment rate of 3.2.  That is below full employment.  The 3.2% is basically people changing jobs.  In fact there are less unemployed people than there are job openings.  No need to have silly minimum wage laws here.  Anecdotally, in some places in North Dakota McDonalds is paying $10/hr. to start.  They need to get workers.  Of course, they have new oil there, and on private or state land, so Obama cannot turn down the permits. Huge amounts of tax revenue are created and sent to Washington. Granted the weather isn’t great, but it is no better in Detroit.  In Metro Detroit, after stimulus, bailouts, the government “saving the auto industry”  (actually, they just saved the union pension funds) and a caring Democrat government for years, they have 13.5% employment.  Detroit has been “helped” by the federal government for decades, and what do they have to show for it:  high crime; high unemployment; lots and lots of government programs and a pathetic high school graduation rate. This election is about whether we want America to be more like Detroit of North Dakota.

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