June 8, 2011 12:00 A.M.
It’s Obama’s Economy, Stupid
No president “runs” the U.S. economy, but this president talks like he does.
Now, my administration has a job to do as well, and that job is to get this economy back on its feet,” President Obama declared on July 14, 2009, in Warren, Mich. “That’s my job, and it’s a job I gladly accept. I love these folks who helped get us in this mess and then suddenly say, well, this is Obama’s economy. That’s fine. Give it to me.”
OK. It’s yours.
The unemployment rate then was 9.5 percent. It’s now 9.1 percent, well above the 8 percent cap that the administration’s advisers projected under the stimulus bill. But that’s not the amazing part. According to a White House report written by economic advisers Jared Bernstein and Christina Romer in January 2009 in support of the bill, if we had passed no stimulus package at all, the unemployment rate would have topped out at around 8.8 percent in the last quarter of 2010.
Instead, we got Obama’s vital “investments.” Since his speech in Warren, we’ve spent another $2.8 trillion in borrowed money. Presumably, we could have cut the unemployment rate by four-tenths of a percentage point more cheaply than that?
Meanwhile, we’ve accrued a total of $3.7 trillion in debt on Obama’s watch, while losing 2.8 million jobs. That doesn’t sound ideal either.
But what do I know?
The more salient point is that Obama acts like he knows everything. From Day One, this White House has been cocksure about how to get us out of the economic ditch. In every major relevant speech, Obama has stuck with a consistent message: We know what to do and the Republicans don’t. “I will not sacrifice the core investments we need to grow and create jobs,” Obama insisted yet again in his April budget speech.
So what does this guy have to do to get the blame for the bad economy? Mark Halperin, an analyst for MSNBC and Time magazine, was asked on the Today show over the weekend about the political impact of the bad economy. He assured viewers that the president was totally engaged in the need for job creation. “The Republicans, though, have the onus on them to come forward with some ideas. The president’s ideas are still a little bit up in the air.”
A little bit up in the air? They’re in concrete. From his April 14, 2009, “New Foundation” speech at Georgetown University to his latest campaign stop, Obama has insisted he knows exactly what he’s doing. He stands by “Obamacare” as a boon for the economy. He still sees the “green revolution” — and all the crony capitalism that comes with it — as the solution to our woes. (That’s why he nominated John Bryson, a former utility CEO, subsidy-seeking entrepreneur, and environmental activist, to be his next commerce secretary.)
But is there any evidence it’s helped create jobs? Consider that when President Reagan oversaw a huge jobs boom, the media recycled the untrue claim that these were all low-paying “hamburger flipper” jobs.
Well, McDonald’s alone may be responsible for a quarter to a half of the new jobs created in the last month. And that hiring probably wouldn’t have happened if Mickey D’s hadn’t been given a waiver from Obamacare.
And then there’s the stimulus, which the White House still touts as an unqualified success. Well, during Obama’s first year in office, more than half (119,000) of all the new jobs in the United States were created in business-friendly Texas, according to the Bureau of Labor Statistics. If Obama created those jobs, why’d he put so many of them in, of all places, George W. Bush’s home state?
No president “runs” the U.S. economy, but this president talks like he does more than any I can remember. And yet, none of his economic promises or predictions has panned out. (Remember the long, hot “recovery summer” when 250,000 to 500,000 new jobs a month that the vice president promised turned out to be mirages?)
How does the media react? Not by taking him at his word when he says he wants it to be “Obama’s economy.” Instead, they’re ferociously truth-squadding Sarah Palin’s comments on Paul Revere and following her bus around like they’re in a remake of It’s a Mad, Mad, Mad, Mad World.
And maybe it is.
Posts Tagged ‘create jobs’
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Rush Limbaugh made me aware of the math: what’s 13,000 jobs divided by 50 states? An infinitesimal 260 jobs per state.
So much for Obama’s “recovery.”
And, of course, it gets even worse when you divide that 13,000 jobs by the 57 states that Obama claimed he had visited [I’d forgive him for that if he were born in Kenya; but given that he claims to be a natural-born American, the ’57 states’ thing will always remain an example of the quintessential ignorance about America and everything American of our current president to me].
260 jobs per state. That’s a record to boast about. Want to wait in a line to get one of those jobs?
The private sector of the U.S. economy added only 13,000 jobs in June, according to ADP employment services, a disappointing number that came in below estimates and portends bad things from the government’s June jobs report due out Friday.
In May, according to ADP, the private sector added 57,000 jobs. But in June? Statistically, across a workforce as big as the United States’? Zero job growth; 13,000 new jobs is a statistically meaningless number.
This is bad news for the economy. If the ADP report is seconded by the Labor Department’s June jobs report, it means that the private sector — which is the engine of growth in this economy, lest we’ve forgotten that, amid all of our various government stimulus programs and subsides — is refusing to add jobs. That means employers are not comfortable enough with their prospects to hire.
In May, according to the government, the economy added more than 440,000 jobs. But almost every one of those was a census worker, jobs that will go away when the count ends in the fall.
Today’s report adds to concerns that the economic recovery is stalling and gives ammunition to the more bearish among us who worry that we’re headed into a double-dip recession.
That “Welcome back, Carter” “malaise” is just an accepted fact from the Obama administration. They may say something different when they know their statements are going to be publicized, but here’s what they say in private when they think only their worshipers are around:
Vice President Joe Biden gave a stark assessment of the economy today, telling an audience of supporters, “there’s no possibility to restore 8 million jobs lost in the Great Recession.”
Now, let’s go back to September of last year, when Joe Biden said of the stimulus:
Now we find that same guy saying all the jobs that were lost are gone forever. How’s that for the stimulus working beyond your wildest dreams?
Gateway Pundit includes a graph summarizing the results of Obama’s wreckovery:
Let’s see. Thanks to Obama, taxes on businesses are going to skyrocket – especially the small businesses, who file primarily as individuals and therefore fall prey to Obama’s shocking increases on those earning more than $250,000 a year. Businesses are being forced to take into account that they won’t have nearly as much money under Obama, and must therefore plan accordingly.
… Obama’s stated plan to raise taxes on households making $250,000 or more in income is a tax increase on small business. The simple answer to this dilemma can be found in the IRS Statistics of Income Bulletin (Table 1.4, for those who are interested).So what do the data say?
In 2006 (the latest year available), $706 billion of such income was reported to the Internal Revenue Service. Of this, about half was reported by households in the top marginal income tax rate. Interestingly, two-thirds of this income was reported by households making $250,000 per year or more — the very same households that Obama wants to increase taxes on.
Intellectually bankrupt liberals are hyping the Marxist class warfare strategy of demonizing businesses. But when the government taxes businesses and business owners, businesses and those who own them merely a) raise their prices and pass those taxes on to you the customer, and b) invest less and hire less. And who ends up getting hurt the most?
Thanks to Obama, taxes on those who create wealth and build the economy by investment are going to shelter their money. Stephen Moore put it this way:
[I]f you think it’s bad this year, you’re right. It’s going to get a whole lot worse next year because the Bush tax cuts expire. That means that we’re going to see an increase in the capital gains tax. We’re going to see an increase in the tax on dividends, perhaps a doubling or tripling of that tax. And then we’re also talking about higher income tax rates next year. So this is going to be a tough year this year, but I think things get a whole lot worse next year as we see rates across the board increase. And let’s not forget, there’s also a lot of talk about a value-added tax on top of all of that. […]
[T]here’s something called the Laffer curve, and that’s especially true with these investment taxes. I think it’s a big mistake to be raising taxes on stocks and investment at the very time we need businesses to be doing more investment. So a lot of economists think we’re going to have a pretty good year this year, in 2010, but once those new taxes kick in, in 2011, might cause a double-dip recession.
Intellectually bankrupt liberals are hyping the Marxist class warfare strategy of demonizing private investors. But they are trying to kill the geese that lay the golden eggs. Rich private investors create opportunities for businesses to grow by their investments. And private investors – who are investing their own money rather than someone else’s as government bureaucrats always do – are rewarding well-run businesses that will make the most of their capital to most effectively expand and create jobs.
If you tax the investments and seize the profits that investors took risks to obtain, then they will risk less and invest less. It is as simple as that. You are killing businesses by taking away the investments that sustain their growth.
Thanks to Obama, the cost of providing health care to employees will go up shockingly. And employers will HAVE to provide health care insurance, or pay fines.
It’s been a banner week for Democrats: ObamaCare passed Congress in its final form on Thursday night, and the returns are already rolling in. Yesterday AT&T announced that it will be forced to make a $1 billion writedown due solely to the health bill, in what has become a wave of such corporate losses.
This wholesale destruction of wealth and capital came with more than ample warning. Turning over every couch cushion to make their new entitlement look affordable under Beltway accounting rules, Democrats decided to raise taxes on companies that do the public service of offering prescription drug benefits to their retirees instead of dumping them into Medicare. We and others warned this would lead to AT&T-like results, but like so many other ObamaCare objections Democrats waved them off as self-serving or “political.”
Dumbass quiz: do you think that makes a business more or less likely to hire a new employee?
Meanwhile, Obama will massively tax every American by forcing them to buy health insurance, leaving us all with less money to spend purchasing goods and services from businesses.
While certain ramifications of the legislation will only emerge over the coming years, our initial reaction is that this bill will further hinder the U.S. economy’s already fragile recovery. Tough new restrictions on traditional credit products and more onerous capital requirements will further curtail credit availability and product innovation, including affordable credit options designed for higher-risk customer segments. As a result, both industry and economic growth will likely be suppressed for an extended period as banks continue to de-leverage and develop a more thorough understanding of the broad-based structural changes likely to affect the industry in the coming years.
Thanks to Obama, energy will ultimately become far more expensive to already-squeezed businesses. As Obama taxes productivity, there will be less and less incentive to be productive.
And the added cost to the average household will be some $1,761 a year, leaving us all with less money to spend. And thus hurting businesses even more.
You add all of these disastrous Obama policies up and you get… absolutely nothing. At least nothing in terms of jobs.
One day Barack Obama will surely end up in hell, and Karl Marx will say to him, “Well done, my good and faithful servant.”
Tags:taxes, Jimmy Carter, Biden, health care, Bush tax cuts, income tax, small businesses, jobs, tax increase, 57 states, Obamacare, create jobs, double-dip recession, individual mandates, writedowns, financial reform, 13000 jobs, recovery, 260 jobs per state, Census jobs, malaise, no possibility to restore 8 million jobs lost, Great Recession, earning less than, increase in the capital gains tax, increase in the tax on dividends, across the board tax increase, punish job creation, credit crisis
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A picture is worth a thousand words, so here’s the picture:
For what it’s worth, the $787 billion stimulus which Americans are increasingly agreeing was a dismal failure was in reality a $3.27 trillion porkulus package. Which is to say, this was a FAR bigger and a FAR more dangerous waste of money which will do FAR more harm to our economic futures than most Americans understand.
Here’s what Rasmussen said under the title, “For First Time, Plurality Believes Stimulus Plan Hurt The Economy“:
A new Rasmussen Reports national telephone survey finds that 30% of voters nationwide believe the $787-billion economic stimulus plan has helped the economy. However, 38% believe that the stimulus plan has hurt the economy. This is the first time since the legislation passed that a plurality has held a negative view of its impact.
The number who believe that the stimulus plan has hurt the economy rose from 28% in September, to 31% in October, and 34% in November before jumping to 38% this month. The week after the president signed the bill, 34% said it would help the economy, while 32% said it would hurt.
The Political Class has a much different view than the rest of the county. Ninety percent (90%) of the Political Class believes the stimulus plan helped the economy and not a single Political Class respondent says it has hurt. (See more on the Political Class).
The underlying reason for skepticism about the stimulus plan is that 50% of voters believe increasing government spending is bad for the economy. Just 28% believe that increased government spending helps the economy.
Men, by a 42% to 27% margin, believe the stimulus effort has hurt the economy. Women are evenly divided.
Fifty-one percent (51%) of Democrats believe the stimulus plan has helped the economy while 47% of Republicans believe it has hurt. Among those not affiliated with either major political party, 52% believe the stimulus plan has had a negative impact.
Concerns about federal budget deficits also play a role in evaluating the stimulus spending. Voters continue to think that the president’s top budget priority should be cutting the federal deficit in half by the end of his first term in office. But they see it as the goal the president is least likely to achieve.
Health care reform is second on the list of priorities for voters, but most oppose the health care plan working its way through Congress.
Not surprisingly, most Americans are opposed to a second stimulus plan. In fact, 51% of voters say more jobs would be created if the remaining ending planned in the first stimulus plan was cancelled right away.
Only 14% of American workers say their firms are hiring and 29% say their employers are laying people off. As a result, 67% expect that unemployment will be at 10% or higher a year from now.
Please allow me to supplement the above Rasmussen article describing the fact that a solid plurality of Americans now believe the stimulus was harmful with another article detailing what a whopping load of partisan corruption the stimulus has turned out to be:
Report: Democratic districts received nearly twice the amount of stimulus funds as GOP districts
By: Mark Hemingway
Commentary Staff Writer
December 16, 2009
A new analysis of the $157 billion distributed by the American Reinvestment and Recovery act, popularly known as the stimulus bill, shows that the funds were distributed without regard for what states were most in need of jobs.
“You would think that if the stimulus money was actually spent to create jobs, there would be more stimulus money spent in high unemployment states,” said Veronique de Rugy, a scholar at the Mercatus Center who produced the analysis. “But we don’t find any correlation.”
The Mercatus Center at George Mason University in Virginia is one of the nation’s most respected economic and regulatory think tanks and has a Nobel prize-winning economist on staff. The econometric analysis was done using data provided by Recovery.gov — the government website devoted to tracking the stimulus data — as well as a host of other government databases.
Additionally, Mercatus found that stimulus funds were not disbursed geographically with any special regard for low-income Americans. “We find no correlation between economic indicators and stimulus funding. Preliminary results find no statistically significant effect of unemployment, median income or mean income on stimulus funds allocation,” said the report.
The Mercatus Center analysis also found that Democratic congressional districts received on average almost double the funding of Republican congressional districts. Republican congressional districts received on average $232 million in stimulus funds while Democratic districts received $439 million on average.
“We found that there is a correlation [relating to the partisanship of congressional districts],” de Rugy said. Her regression analysis found that stimulus funds are expected to decrease by 24.19 percent if a district is represented by a Republican.
“During the appropriations process, you’re not surprised to see the Democrats are getting more money, but in this case a lot of the money we’re looking at is going through HUD [Department of Housing and Urban Development], or Department of Education, Department of Transportation etc. and they’re following a formula,” she said. “But the correlation exists, and not only does it exist — when you look at how much money we’re talking about, it’s a pretty big deal.”
The analysis found that neither congressional leadership positions of local members nor presidential preference in 2008 were factors in stimulus allocation by congressional district.
Finally, the Mercatus analysis shows that a majority of the funds allocated went to public rather than private entities — nearly $88 billion to $69 billion. While some of the money given to public entities may eventually filter down to the private sector, it’s much less transparent how money given to public entities is spurring economic growth and job creation.
So, to repeat, the stimulus money isn’t being given out to low-income Americans or struggling geographic regions. It is being given out to Democrats to use as political slush funds.
The Democrat Party is the party of corruption, partisanship, socialism, and big-government-as-God-substitute ideology.
And more and more Americans are coming to realize how dangerous they are to the American way of life.
Another way to look at this is that – from the very beginning of the Obama administration – the Republican Party has demonstrated that they were completely right and Democrats were completely wrong. Whether you look at the stimulus, cap-and-trade, garbage climate change claims, health care, or terrorism, Americans now solidly agree that Republicans were right; Democrats were wrong.
Tags:$3.27 trillion, $787 billion, 38% believe that the stimulus plan has hurt the economy, American Reinvestment and Recovery act, correlation, create jobs, Democrat congressional districts, economic indicators, Economy, geographic regions, jobs, partisanship, political class, Republican congressional districts, stimulus, stimulus funding, stimulus money, unemployment
Posted in Barack Obama, Conservative Issues, Democrats, Economy, Politics, Republicans, socialism | 2 Comments »