8 Illuminating Charts That Show How Truly Failed Obamanomics Truly Is

Is Obamanomics working?  Only if “working” means imploding America: 

The 7 most illuminating economic charts of 2011
By James Pethokoukis
December 23, 2011, 12:11 pm

My Magnificent Seven. Some bust myths. Others highlight a reality the media is ignoring. Enjoy!

1. The overly optimistic unemployment forecast of the Obama White House. This may be the most infamous economic prediction in U.S. political history (helpfully updated by The Right Sphere). For the original January 2009 chart from White House economic advisers Jared Bernstein and Christina Romer, see here.

 

2. The real unemployment rate. The official (U-3) unemployment rate is 8.6 percent. But the labor force has been shrinking as discouraged workers have been disappeared by government statisticians rather than counted as unemployed. But what if they weren’t? What if the Labor Department added those folks back into the numbers? Well, you would get this:

3. Middle-class incomes have been stagnant for decades—not. It is an oft-repeated liberal talking point, one that President Obama himself used in his populist Osawatomie Speech: The rich got richer the past 30 years while the middle-class went nowhere. In short, the past few decades of lower taxes and lighter regulation have been a failure. Or, rather, pro-market policies have been a failure … except that new research from the University of Chicago’s Bruce Meyer and Notre Dame’s James Sullivan find that “median income and consumption both rose by more than 50 percent in real terms between 1980 and 2009.”

4. Inequality has exploded—not. According to the MSM and liberal economists, U.S. inequality has exploded to levels not seen since the 1920s or perhaps even the Gilded Age of the late 19th century. And to prove their point—that the 1 percent has gotten amazingly richer in recent decades—the inequality alarmists will inevitably trot out a famous income inequality study from economists Emmanuel Saez and Thomas Pike. But why not instead look at wealth—all financial and nonfinancial assets—instead of income? It’s less volatile and a truer measure of all the economic resources at an individual’s command. Turns out that Saez has done research on that subject, too. And he even created a revealing chart documenting the ups and downs of U.S. wealth over the past century. It reveals a very different picture of inequality in America:

5. and 6. The underwhelming Obama recovery. When you compare the current recovery to those of the past, it looks pretty anemic. And it doesn’t matter if you look at GDP growth or unemployment (via The Economist).

 

 

7. America’s debt picture is worse than you think. If you factor in the long-term impact of rising federal debt on U.S. interest rates and economic growth—raising borrowing costs and lowering tax revenue—you’ll find that federal debt could be almost 50 percent higher by 2035 than the estimates usually bandied about in the media.

 

I’ll give you another chart as an extra bonus.  It demonstrates the inconvenient fact that Obama’s VERY BEST month in terms of unemployment is signifantly worse than George Bush’s WORST month:

The truth is that Obama has lost 2.5 million jobs since he took office. The truth is these  jobs have simply ceased to exist under Obama, as measured by the diminishing labor participation rate. The truth is that if Obama were measured by the same labor participation rate that Bush was measured by when he left office, unemployment would be at over 11.3% (according to an analysis by Reuters), rather than the 8.6% Obama is being lauded for by media propaganda. I mean, dang, the truth is that even liberal Ezra Klein affirms that the real unemployment rate ought to be 11 percent.

We live in an age where awful is massaged and manipulated by a modern Ministry of Truth to be wonderful.

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10 Responses to “8 Illuminating Charts That Show How Truly Failed Obamanomics Truly Is”

  1. Matt Says:

    You really pulled out all the stops in terms of proof. Well done, and I cannot disagree with your conclusion.

  2. Michael Eden Says:

    Thanks, Matt. Appreciate your comment and your support!

  3. Anonymous Says:

    MichaelE: The most intriguing chart is the Unemployment rate chart. I don’t see this very oftern, but the unemployment rate has a strong correlation with GDP rate. Simply put, when GDP slows, unemployment creeps up because output of goods and services slow. That is why tax cuts and only tax cuts or better yet tax REFORM along with cuts in government spending can get the country moving again. Wealth that is being generated is being sucked away by government. We need another RR.

  4. Michael Eden Says:

    I completely agree with the proviso that we’re talking REAL unemployment, rather than the U-3 rate which is the “official” one.

    By the U-3 rate, NOBODY could have a job and we could still be at “full employment.” It’s ridiculous.

    http://blogs.wsj.com/economics/2011/12/02/why-did-the-unemployment-rate-drop-5/

    http://conservativedailynews.com/2011/12/msm-reports-u3-unemployment-rate-of-8-6-ignores-u6-unemployment-rate-of-15-6/

    The labor participation rate is a huge indicator. And by that indicator, Obama has destroyed 2.5 million jobs. They simply ceased to exist. If Obama had the same labor participation rate that Bush had when he left office, the unemployment rate today would be 11.3% today.

    But of course that destruction doesn’t show up in the official unemployment rate.

    And any measurement of unemployment which does not consider workers who are so discouraged by the terrible market/economy that they have simply stopped looking for work is a terribly flawed measurement.

    Until we have a president who has a policy of rewarding risk and investment, we will NOT improve our economy. At best, Obama will keep artificially reducing the bogus U-3 rate even as fewer jobs are created and more workers give up trying to find a job that doesn’t exist.

    With that “ixnay the U-3 bay” caveat aside, we’re completely on the same page.

  5. Anonymous Says:

    MichaelE; Sorry, I wasn’t logged into wordpress on my anonymous post…bad habit lately…I missed taking my omega-3 pills….anyway, back to the subject. I missed telling you the 2nd chart you posted, the one with Unrate on top and GDP on bottom from Dept of Commerce. If properly displayed, which it reasonably is, demontstrates my point. You are correct about the participation rate. A much better source of unemployment rate would be SSA and IRS because they track everyones SSA deductions. When you are unemployed, you stop paying FICA from your check and the IRS because they know when your income stops and when it starts back. You are most certainly correct about the participation rate; it has been dropping since the late 1990s.It is all here:

    http://research.stlouisfed.org/fred2/series/LNU01300000

    You said “With that “ixnay the U-3 bay” caveat aside”

    ixnay???

  6. Michael Eden Says:

    I’m taking a wild guess and assuming I’m chatting with Dauntless?

    These posts have a very Dauntless ring to them, anyway.

    Ixnay is pig Latin for “nix.” You reverse the letters and add an ay at the end as a smarmy but easy way to learn “Latin.”

    I couldn’t get your link to load. I’ll try it again later as it sounds like a pretty good ‘un.

    I am practicing Reagan’s 11 Commandment and not attacking the GOP rivals, but as for “Santorum and amnesty” all I found was this:

    https://thedaleygator.wordpress.com/2011/12/30/rick-santorum-smacks-down-ann-coulter-over-amnesty/

    http://www.numbersusa.com/content/action/rick-santorum.html

    Fwiw, I’m looking for a little bit of balance in my president. Do I want a conservative? Yes. Do I want someone who will be so unwilling to make any compromises that he/she only represents the 60 members of the Tea Party Caucus, is easily demonized, and proceeds to guarantee a Democrat sweep next election? No.

    Reagan is my model. History will document that the man compromised quite a few times – but generally in a way that he ended up getting more of what he wanted than he gave up.

    On the negative side, there isn’t a Reagan running.

  7. The Dauntless Conservative Says:

    MichaelE: yes it was me…sorry for the confusion is this working now?

  8. The Dauntless Conservative Says:

    MichaelE: you are most correct. There is no one close to RR running for POTUS. However, we may have to hold our nose and vote for whoever is on the ballot. I hate to say it this way, but obamarx has to be beaten. Let’s assume it will be Gingrich/Romney. While they are establisment Republicans, I could work with them if I was a Congressman…I may have to box their ears all along the way until they see the light of being a true conservative, but I could work with them.This generation of Republicans are more liberal that the previous…something we may have to live with. Millions are on some kind of gubmint dole to the point, if we start cutting gubmint subsistence, we will have riots like that of Athens and London recently. Once the public is on the gubmint dole, it is very, very hard to break the habit regardless of a person political persuasion.

  9. Michael Eden Says:

    Dauntless,

    It’s working as good as the “can you hear me now” guy in the Verizon ad (you know, it’s interesting that in all the Verizon ads the answer to “can you hear me now?” is always “yes”).

  10. Michael Eden Says:

    Dauntless,

    I watched Rush Limbaugh do an interview with Greta Van Sustern that was just marvelous. And Rush nailed it:

    he told Greta that conservatives have bought into this mantra that the way to win is to capture the independents. And while the left is just utterly toxic and rabid the right simply cannot dare to offend anybody lest we lose the independents. And so we keep trying to bring in milktoasts like John McCain who wouldn’t ever dare attack Obama in a nasty manner who of course lose. But they lose with “honor” so we can feel good about ourselves.

    What created this brainwashed mindset is that our “conservtive elites” basically aren’t particularly conservative and don’t particularly trust conservative values. And we listen to them because they’re the ones the media gave us to speak for us…

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