Obama Harms Poor While on Route to AfterShock Economy


Obama Harms Poor While en route to AfterShock Economy

 homeless-and-addiction-Copy-300x168 WEBa1Obma0425_345.gif.cms 2FPchart_130426.png.cms

Indisputable facts prove the poor are much worse in 2013 than 2009.  We can attribute this to BO economics.  Prioritizing the government sector over the private sector is a sure means to stall the economy and tremendously increase debt.  The only genuine way the poor can increase their wealth long term is via a strong private sector.  That is the sector that creates new jobs that self sustain them and create ancillary jobs.  Results include opportunities for all especially the poor.  Otherwise the poor get trapped in increasing Dependency on Government.  Results then include lack of motivation to apply God given skills all have to better themselves and make the world a better place via gainfully productive jobs.  Reliance on Food Stamps, 99 weeks unemployment compensation, and then eventually for some SS disability is devastating to the individuals’ psyches and to the US economy.

Increasing total debt mush faster than GDP growth and much faster than our growth in Treasury revenues for already 5 years is extremely dangerous. This then accelerates our inevitable path to a severe AfterShock economy.  For more on AfterShock economy, a term coined by Economist, Investor, and Author Robert Wiedemer, please click on the AfterShock Economy tab on this site.  Two reviews of Wiedemer’s book detail the Afterhock economy we are headed toward given present trends.  Among other economic pain, an AfterShock economy can include a $ collapse far exceeding 50% and unemployment rate well over 25%.  ** A painful but eventual recovery to new economic prowess is also projected by Wiedemer ….  It is not all gloom and doom but the period prior to and during especially will be tremendously hard on the poor and unskilled as entitlements will be severely limited.

In link below, Investors Business Daily (IBD) recently quantified the impact of BO policies in the poor.

http://news.investors.com/ibd-editorials/042413-653244-rich-get-richer-poor-poorer-under-obama.htm#ixzz2RtMt3VtI

 Excerpt: When President Obama first ran in 2008, he claimed his economic policies would “foster economic growth from the bottom up and not just from the top down.” He said he’d put in place “an immediate rescue plan for the middle class” and would end the “tired, worn-out, trickle-down ideologies we’ve been seeing for so many years.”

 But what do we have instead?  Net worth increasing by 21% for people with net worth of $500,000+ but decreasing for all others 2009-2011.

 Secondly per another recent IBD link below we learn about a tremendous explosion in SS disability.  Today, 6.5 workers are on disability for every 100 who have a job. That’s double the ratio from two decades ago.

 http://news.investors.com/042513-653555-disability-rolls-continue-to-explode.htm#ixzz2RW4d19P0

 Excerpt:  SS disability rolls continue to climb sharply, as 76,983 workers enrolled in the Social Security Disability Insurance program in April, according to new data from the Social Security Administration.  More than 300,000 have joined the program so far this year. The number of workers on permanent disability is now a record 8,865,586, a net increase of one million in just three years.

 Results of the above:

Is the US twice as disabled as it was 2 decades ago?  Of course not.  This then is direct proof that many have lost incentive to advance themselves.  That is what Dependency on Government policies produce.  Another outcome is increasing debt. It is the later that accelerates our inevitable path to a severe AfterShock economy.

 Thirdly ….

Many poor are not able to relocate for variety of reasons.  Thus, they are not able to seek work in Texas or North Dakota, two booming states.  Many are living in large cities, many of which have been targets of exhaustive social welfare programs from Federal, state, and city governments.  They are trapped in virtually intransigent Dependency on Government on all levels.  This furthermore generates a disincentive to develop skills to progress.  Now with many cities on verge of bankruptcy, per their tax and spend explosions, the city poor are especially worse. The Intellihub elaborates on unprecedented poverty growth in major cities – link below.

 http://intellihub.com/2013/04/25/america-the-fallen-24-signs-that-our-once-proud-cities-are-turning-into-poverty-stricken-hellholes/

 In conclusion the tax and spend, very Socialist leaning, private business trashing polices have taken heaviest toll on the poor.  LBJ initiated his War on Poverty in the 1960s. Since then $16 Trillion has been spent with nothing positive to show.  

 So what can we do?

 We must be optimistic and enthusiastically champion free market capitalism and individual freedoms as never before.  Especially we must explain clearly how both improve the prosperity of the poor.  Why? It is because if current BO economic policies continue, our economy will crash.  That will lead to a historical inflection point.  The US will then have to make a choice to pursue a greater command and control economy or break from crony capitalism along with its social welfare state and embrace true free market capitalism.

 APRIL 30, 2013

Twitter @Economics501

 

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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7 Responses to Obama Harms Poor While on Route to AfterShock Economy

  1. kimmie0 says:

    I have two points to make. Instead of making such a pejorative (as well as obnoxious and no proof at all) claim as “this then is direct proof that many have lost incentive to advance themselves,” why don’t you consider that the aging “baby boomers” are not limited to those who are comfortably enjoying their retirement in Boca Raton. 100s of millions of really poor people who have been working at 1 or more minimum wage paying jobs, with no healthcare for the past 30-40 years, are wearing out. With all your accusations of how President Obama has harmed the poor, and how he is the reason the poor are doing so badly now, compared to 2009, you have provided none of the historical data sets beyond 2009 for a true comparative analysis. Data from http://www.infoplease.com/ipa/A0104529.html – shows an overall increase in the rate of poverty during the past decade. The additional jump right after the crash of 07-08 can hardly be an unexpected phenomenon, and to blame it entirely on the current administration is absurd, and I didn’t even vote for him. Secondly, your implied, but not stated opinion, is that the Social Security Disability program is so flawed that they are approving disability claims for healthy people who are completely capable of holding down a job. Are you even aware of the application process for Disability? It is not a walk in the park, or as easy to qualify for, as you have implied.

    • economics501 says:

      Thanks for your point of view. It is not all BO fault. This debt debacle and Dependency on Government culture has been growing for many years. Bush had a major role. But if we go back to the Great Recession we realize that the main root cause was Government interference in the housing market. Just go back to an article by the NY Times in 1999 and read about role Fannie Mae and Freddie Mac played. Link is way below.

      In the 90s, Clinton pressured the banks to make more subprime loans. The banks pushed back, because there weren’t enough subprimes to pass Fannie and Freddie underwriting standards. So Clinton then pressured Fannie and Freddie into lowering the standards which had protected taxpayers for 80 years.

      Clinton’s actions turned trash mortgages into safer investments. The banks made the loans in part because Clinton Admin pressured them to. Liberals blame investors for buying … government-guaranteed loan packages from Fannie and Freddie.

      This was all reported by — no kidding — the New York Times. And near the end, the TIMES predicted than Clinton’s actions could create a taxpayer bailout like the 1980s.

      This link would be funny if it wasn’t so tragic.
      http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

    • economics501 says:

      Regarding SS disability. Again, does anyone think the US is twice as much disabled than it was 2 decades below. How about BO reversing Clinton’s welfare reform? More:

      BO allowing USDA advertise in Mexican how illegals can attain Food stamps.

      BO and the Left against school vouchers trapping the poor in horrible schools

      BO rendering the US as the only nation in the world not tapping into new oil and gas reserves.

      The Left stays in power by keeping more citizens dependent on the Gov.

      does Bo really care about the poor? I think not. Power and an extreme dislike of free market capitalism rules him. I pray and hope he realizes his legacy will be trash if he continues on his current path. maybe then and only then he will come to his senses and reverse course and embrace economic principles that made this nation great.

      Thanks again.

  2. DC says:

    It IS just that easy to get disability. I know 3 people personally who have gotten disability for years because they are “not mentally fit for work”. Once every year or 2 they have an episode where they say they are going to kill themself and they’re tired of living and blah, blah, blah, so that way they can “prove” that they are still mentally unfit to work and the checks just keep on coming. Meanwhile, I have an aunt of mine who was in a car accident and suffered nerve damage in her neck and it affected her motor skills in her arms and hands. Her driver’s license was revoked because of this and she has had Crohn’s disease her whole life on top of that. Guess what? Disability DENIED! She had to fight for 2 1/2 years to finally get it and lost her house while she was waiting. Don’t tell me you can’t just walk in and get it. Calculated efforts are very fruitful for the complete degenerates with no pride. I’ve got too much pride to do that, but for some people, there is no shame. I also remember when my wife and I were kicked off of WIC a year after our daughter was born because she was only 17 and we weren’t married it’s guaranteed for a year but when I got my new job I knew we would be kicked off. While we were standing there getting ready to leave, a brand new escalade with chrome spinner rims pulls up and drops off a young woman and 2 kids before driving away. I said to the lady at the desk, “What the —-is that? A vehicle that costs more than my house but they got WIC?” She says, “I know, I see it all the time.” Everyone would be better off if the degenerates put the same effort toward bettering themselves as they did towards crunching numbers and scheming out ways to get something for nothing. Welfare is oppression and people are too dumb to see it. There are certain people that will be on it forever and they think it’s “free money”. Nothing is free. They’re in prison without being in prison. Public housing is a corral for the degenerates and that’s where the cops patrol. Makes it easier for them. These people will always be dependent and at the bottom because that’s exactly where the government wants them. They will never be anything more. Chew on that.

  3. ken says:

    ex wife at 57 gets disability for a hip replacement, I guess her hip will never heal!!!

    • economics501 says:

      If that is only reason for hip replacement then that is wrong. I hear that hip replacements have lately improved and that they can now last a lifetime. In the US we need a mind set change. We need to aspire to utilize our talents to mAe the world a better place. Contrast this with striving to take advantage of any tax payer benefit we can attain. Best of luck to your ex wife. If she feels well and walks well and feels strong I hope she will consider rendering the work force.

  4. MI adds says:

    About $1.1 million in federal food stamp money was spent over the past two years by people who were incarcerated and not eligible for the program, the state Legislative auditor found in a report released Monday. The audit encouraged the Louisiana Department of Children and Family Services to do a better job policing its own databases and other records to root out fraud.

    More than 80 convicted drug felons who were not eligible for the program received $107,864 in benefits in 2011 and 2012. People convicted of felony drug offenses must wait a year from their release from prison before they can receive food stamps, according to the report.

    DCFS could prevent these problems from recurring by checking people who sign up for the program against data from the Louisiana Department of Corrections, the report suggested.

    The auditor also found signs of potential fraud that should be more fully explored. This included more than 3,000 of the state’s 866,335 recipients who spent all of their benefits in other states, an indication that they perhaps no longer live in Louisiana and might be double dipping. These participants spent $2 million last year.

    Another example of potential fraud were 154 cases identified by the auditor that involved a recipient using a benefit card in Louisiana and within an hour spending the food stamp money in another state.
    http://www.nola.com/politics/index.ssf/2013/05/louisiana_legislative_auditor.html

    The Dept. of Children & Family Services of Louisiana was not policing it’s data basis and other records to root out fraud prior to this audit’s finding. May 06, 2013 at 9:52 AM, More Gov’t waste of tax payers money due to people not being honest about their situations.

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