It’s amazing how little Obama has learned about economics in his four and half years in the White House. Growth, incentives, tax reforms, tax increases, private investments, the middle class, a second great depression, the sequester—all of which Obama doesn’t understand their role in our economy. Nor does he appear interested in finding out. Now-defunct Presidents Council of Jobs (IMMELT) and Competitiveness have privately talked about Obama’s economic shallowness.
CBO’s, Douglas Holtz-Eakin broached the subject of the economic cost of Obamacare the president dismissed it as politics, not economics. Obama seems oblivious to the feeble recovery his policies have produced since the recession bottomed out June 2009.
And if the millions who’ve dropped out of the job market were counted the rate would be 10.8%. The economy has grown at less than 2% during obama’s presidency and shows few signs of picking up the pace. He’s sticking to the same policies that led to stagnation in the first place. His solution is More government spending. Government is going to have a critical role, “whether we can hire more workers to upgrade our transportation and communications networks for fund the kinds of research and development that always kept America on the cutting edge”. What has kept America ahead of the curve is private investments which has lagged in the obama era.
Tax reform is dead and along with it incentives to invest. The presidents excuses for stunted growth is the sequester, the spending cuts of $85 billion this year. It has “cost jobs, harmed growth, and hurt our military readiness. In fact the economic impact of the sequester is unknowable, it’s guesswork.
Two questions should ask himself, if spending cuts impede growth, shouldn’t a massive spending increase unleash it? If cutting the corporate tax rate now at 35% will “create more good jobs and with good just this year obama boosted taxes, notably on business-related income, capital gains, dividends, and personal earnings. These came on top of a 3.8% surtax on investment income.
Wages for the middle-class folks who work at those businesses,” won’t a tax hike have the opposite effects?
Obama claims his policies have “begun to lay a new foundation for economic growth and prosperity.” “Our deficits are now falling at the fastest rate since the end of WW2—sounds impressive until you realize the decline is from a deficit of $1.4 trillion in 2009 to $1.1 trillion in 2012. Last week the accumulation of national debt is on an unsustainable path. He saved the country from plunging into a full-blown depression in 2009. He insists the $821 billion “stimulus” package stopped the “downward spiral and put a floor under the fall”. But the recession was over by June 2009. Federal reserve had flooded the economy with liquidity and the big banks had been bailed out, before obama was inaugurated. The crisis had been largely quelled without his help.
Fantasy in obamna’s economic dreams he is the savior of the middle class. “We also started pushing back against trends that have been battering he middle class for decades”.
The rich got 20% of national income in 2012, AEI’s, Pethokoukis, of the Census Bureau has pegged “real median household income” as rising during the boom years from 1983 through 2007.
The median income was $51,017 in 2012, close to what it was in 2011 but below the $55,627 level in 2007 (before the recession). The peak was $56,080 in 1999.
So the bureau said median income “does not completely capture the economic well-being of individuals and families. Note that household income has fallen in the Obama years!