The President and Failed Economics

Michael Lodge

by Michael Lodge

When President Obama gets in front of any audience and tells the American people that he has been a great economic President and the economic facts are far different, then we need to talk about how he has had no economic policies to set the country to grow economically.  He has made statements that the stock market is doing great because of him.  What has his policies been to improve the stock market?  He has done nothing, he is not even involved in the stock market.  I doubt he is even doing day trading.  The stock market and investors are the only ones that determine which stocks to purchase, what funds to put money into, and everything else that drives the stock market.  He wants you to believe that the economy is doing great because of him, when we should be thanking the Federal Reserve for keeping interest rates low and inflation in check.  He has had nothing to do with the economy.  The only thing that has stalled growth is that he has added so much debt to the nation.

Let’s look at the President’s problems with this economy.

  • When the President took office in 2009 the national debt was at $10.6 trillion dollars. When he leaves office the debt will be at $20 trillion dollars.  That means the debt will  have nearly doubled during his eight years in office.  He has had no economic plan to lower the debt.  With his last spending agreement with Congress he allowed the government to borrow more money.  Today each taxpayer in the United States shares in that debt, each taxpayer owes about $150,000 per taxpayer.  Those are not good numbers and good lead the nation into greater problems, even worse then the mortgage crises.
  • The President says his policies have brought the economy back.  He blames the remaining economic weakness on things that started before his administration. Unfortunately the President has the facts way backwards on the economy.  Economic growth helped Americans in various income levels until the Great Recession.  From that point forward Americans have struggled.  No solid economic policies – no economic comeback.
  • The President argues that his policies have brought the economy back with success.  However labor market conditions have slightly improved since the recession, the official unemployment rate has even returned to pre-recession level.  But stop, these numbers do not tell the whole story.  Millions of working age Americans dropped out of the job market, they stopped looking for work during the recession.  Many Americans have not returned to the labor market.  The government does not count these ex-workers as unemployed.  The U3 report out of the Labor Department only counts about two weeks back, counts part time workers, and does not take in consideration those dropped out of the work force.  However, the U6 report does and it shows that the unemployment is much higher then currently being reported.  The other issue is that it takes Americans much longer now to find work.  The President’s recovery has gone far slower than the White House had promised.
  • The President tells the American people that pre-existing issues caused the economic weakness of America.The President stated, “where we haven’t finished the job, where folks have good reason to feel anxious, is addressing some of the longer-term trends in the economy – that started long before I was elected – that make working families feel less secure.  These are trends that have been happening for decades now and that we’ve got to do more to reverse”.  Oh Mr. President, your a great speech maker but really bad with the facts of the economy or doing anything about it.  Until the recession, American family incomes were growing.  Congressional Budget Office data shows that market incomes for the middle class of (non-elderly) households were growing, they grew by a third between 1979 and 2007.  Prior to the President taking office.  Economists have estimated higher middle class income growth over that period of time.  Market incomes for families in the bottom sector grew even faster by more than 50 percent, that is a big difference from what the President is having you believe.  Since the President has taken office wages have become stagnant and almost eight years under his administration.

In an interview with the New York Times, Mr. Obama stated his frustrations, “I can probably tick off three or four common-sense things we could have done where we’d be growing a percentage or two faster each year,” he said. “We could have brought down the unemployment rate lower, faster. We could have been lifting wages even faster than we did.”  The problem for Obama he could have done more but he didn’t.  He doubled the national debt, spent money, but did nothing to cut the out of control spending and debt issue of this nation.  When you are reckless with government spending and debt you will not be able to focus on jobs.

The next President that takes office had better have a plan to reduce the nations debt before it brings the country to a stand still and becomes a crises.  The next President had better understand the debt and address it quickly.  If the Presidential candidates are not talking about the debt or have a good plan for the economy, then we will still be in the same mess we are now.  Lower the debt, create a better economy, get taxes under control, and higher will grow the economy.  But if you are talking about higher taxes nothing will come from it.  America really needs to think about which candidate has the ability to lead an economy, who has the most experience in business issues, who has proven accomplishments, and can step forward and get something done.  Think about it hard.

America can do better.