Chart above is from Investors Business Daily May 2, 2013 http://news.investors.com/ibd-editorials/050213-654486-recovery-has-been-weak-all-along-soft-patch-is-nothing-new.htm
Part 2: Obama Harms Poor While On Route to Aftershock Economy
We update how Obama economics are harming the poor and average person with facts reported by Real Clear Markets and Ed Rogers in the Washington Post.
A deep dive into April unemployment stats reveals underlying jobs weakness. I wonder how much ObamaCare is the cause given its negative consequences for hiring Full Time Employees (FTE). Below is a snippet from Real Clear Markets then link below …
While most pundits have focused on the BLS Establishment Survey, which reported that 165,000 payroll jobs had been created during April, the Household Survey* numbers told a much different story.
Total employment rose by 293,000 during April, but part-time jobs increased by 441,000. As a result, full-time jobs declined by 148,000.
The number of “full-time-equivalent” (FTE) jobs** only increased by 73,000. This was not enough to keep pace with the growth of our working-age population, so the “FTE jobs ratio” (the number of FTE jobs per 100 working-age Americans), fell.
From Ed Rogers in the Washington Post May 6 we learn that ..
In the past five years, 9.5 million people have quit working and the current labor force participation rate is just 63.6 percent, the lowest it’s been since May 1979. More than 15.2 million more people are on food stamps today than were in February 2009, and during the same time frame, the poverty rate has increased by 0.7 percent.
Some now are celebrating that our 2013 deficit is coming in lower than expected. Ted and Joe recently blogged in Investors Business Daily to set the record straight:
Annual increases in total gov debt have been expanding at 6% to 10% over past 5 years while GDP barely grows 2% a year. We are at lower end of debt expansion % or 6%. This is no time to celebrate. Instead it is time to determine how we can reverse these numbers — grow GDP faster and shrink debt expansion. Our foreign creditors can not be happy with our progress and may balk sometime soon in financing our debt.
Absolutely right Ted. The big concern is that our debt (currently about $16.85 billion) exceeded our GDP about 2 years ago. The debt is still increasing by more than 7% per year, while our GDP is increasing (as you said) by maybe 2 to no more than 3% per year. Spending has to be dramatically reduced and the private sector needs to be released to accelerate and grow the GDP. However, Obama continues to take the opposite direction. Hell, BO doesn’t even listen to his economic advisors who have all essentially quit on him. It’s just amazing how he knows better!
We see then the extreme economic damage to the poor via economic policies that favor the productive private sector at the expense of the productive private sector. This has led to artificial increase in part time jobs at expense of full time jobs impacting mainly the poor. The lack of private sector growth via Obama damaging regulations such as restricting oil and natural gas drilling has cost the poor and middle class tens of thousands of well paying energy jobs. The lack of growth has exploded our debt and increases our poverty rate. Yes – even with a huge almost trillion stimulus, debt expansion by $6 trillion in little over 4 years ($10.6 trillion to $16.7 trillion) and the Fed printing over $2 trillion, have failed to return employment to per recession levels. This is the slowest recovery since theGreat Depression. It is also the recovery with policies that trashed the private sector and inflated federal spending up to insane 25% of GDP in 2009. We have more poor as evidenced by the poverty rate increase. Had Obama followed A private sector focused approach as Reagan did with an economic debacle at least as severe as the one we has in 2009 we likely would have had a much more normal recovery and many less poor unemployed.
To gain more perspective let us focus on recent blogs to Part1 below:
Submitted on 2013/05/01
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.
Blog2 and 3 responded to Blog1
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.
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.
Blog4 had a different and interesting perspective:
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.
Economics501 May 11, 2013
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