How Obamanomics Promotes Inequality

The great Obama contradiction on the economy is this: he takes credit for the improved economy, but openly admits that in this recovery almost all of the gains have gone to the very rich.

Here is the disturbing passage from Obama’s State of the Union speech that I refer to:

“What I believe unites the people of this nation…is the notion that if you work hard and take responsibility, you can get ahead.

“That belief has suffered some serious blows… Today, after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by – let alone get ahead.  And too many still aren’t working at all.”

What a downer. This is hardly morning in America stuff. Obama likes to ridicule “trickle down economics” but under Obamanomics, almost nothing has even trickled down to the poor. He’s brutally honest in admitting that this has been effectively a non-recovery for a whole large segment of American society.  It’s not clear how Democrats think they can leverage that message of futility to their political advantage in November.

An alarming Fox News poll this week found that more than half of Americans still think the recession is still with us. Ironically, those who have seen the least progress tend to be single women, the young, Blacks, and Hispanics.  These were the very groups that voted in 2012 in large majorities to reelect Mr. Obama.

Via: The Foundry

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The Inequality President

The rich have done fine under Obamanomics, not so the middle class.

President Obama made his fourth or fifth, or maybe it's the seventh or eighth, pivot to the economy on Wednesday, and a revealing speech it was. We counted four mentions of "growth" but "inequality" got five. This goes a long way to explaining why Mr. Obama is still bemoaning the state of the economy five years into his Presidency.

The President summed up his economic priorities close to the top of his hour-long address. "This growing inequality isn't just morally wrong; it's bad economics," he told his Galesburg, Illinois audience. "When middle-class families have less to spend, businesses have fewer customers. When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy. When the rungs on the ladder of opportunity grow farther apart, it undermines the very essence of this country."

Then the heart of the matter: "That's why reversing these trends must be Washington's highest priority. It's certainly my highest priority."

Which is the problem. For four and a half years, Mr. Obama has focused his policies on reducing inequality rather than increasing growth. The predictable result has been more inequality and less growth. As even Mr. Obama conceded in his speech, the rich have done well in the last few years thanks to a rising stock market, but the middle class and poor have not. The President called his speech "A Better Bargain for the Middle Class," but no President has done worse by the middle class in modern times.

By now the lackluster growth figures are well known. The recovery that began four years ago has been one of the weakest on record, averaging a little more than 2%. And it has not gained speed. Growth in the fourth quarter of 2012 was 0.4%. It rose to a still anemic 1.8% in the first quarter but most economists are predicting even slower growth in the second quarter.

Via: The Wall Street Journal

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Wrong For Virginia Briefing Book

OBAMANOMICS: WRONG FOR VIRGINIA

Unemployed: Virginia Has 255,343 Unemployed Seeking Work. (Bureau of Labor Statistics, Accessed 10/18/12)

Failed Stimulus Jobs: Since The Stimulus Passed, Virginia Has Lost 25,300 Construction Jobs And 20,700 Manufacturing Jobs. (Bureau of Labor Statistics, Accessed 10/18/12)

Median Household Income: Under Obama, Median Household Income In Virginia Has Declined From $63,974 To $61,882. (U.S. Census Bureau, Accessed 10/18/12)

National Debt: Since Obama Took Office, Each Virginians Share Of The National Debt Has Increased By $18,029 To A Total Of $52,448. (US Department Of The Treasury,TreasuryDirect.gov, Accessed 10/18/12)

College Tuition: The Average Student Graduating From A Four-Year College Institution In Virginia Has $24,717 Of Debt. (Project On Student Debt, Accessed 10/18/12)

Tax Hikes: Obama’s Plan To Raise Taxes Would Cost Virginia 19,900 Jobs. (Drs. Robert Carroll and Gerald Prante, “Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013,” Ernst & Young LLP, 7/12)

• Obama’s Plan To Raise Taxes Would Cost Virginia $5.8 Billion In Lost Economic Output. (Drs. Robert Carroll and Gerald Prante, “Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013,” Ernst & Young LLP, 7/12)

Gas Prices: Since The Week Obama Took Office, The Average Price Per Gallon Of Gas In Virginia Has Increased From $1.703 To $3.566. (“Current State Averages,” Fuel Gauge Report, 1/16/09; “Current State Averages,” Fuel Gauge Report, 9/22/12)

Food Stamps: Since Obama Took Office, The Number Of People In Virginia Receiving Food Stamps Has Increased By 48 Percent. (“Supplemental Nutritional Assistance Program: Number Of Persons Participating ,” Food Research And Action Center, Accessed 8/10/12; “Supplemental Nutritional Assistance Program: Number Of Persons Participating,” USDA Food And Nutrition Service, Accessed 10/18/12)

Poverty: Under Obama, 137,883 More People In Virginia Have Fallen Into Poverty.(“Poverty: 2007 And 2008,” U.S. Census Bureau, 10/11; “Poverty: 2010 And 2011,” U.S. Census Bureau, 9/12)

Via: GOP.com