October 14, 2014 – Just ahead of the 2014 elections, Obama has been touting his economic record: “There’s almost no economic measure by which we are not better off than when I took office.”
Surely Obama knows the devastating truth behind his distorted economic measurements.
Let’s examine them more closely.
Obama asserts deficits are down. Down from what? Obama is responsible for the largest deficits in U.S. history. Obama’s deficit for FY 2009 was $1.4 trillion; 2010 $1.3 trillion; 2011 $1.3 trillion; and 2012 $1.1 trillion.
And interestingly, though the U.S. Treasury pegs the FY 2014 deficit at some $500 billion, sifting through the same site shows the national debt was $16.8 trillion in September, 2013 and some $17.8 trillion today. So, Obama may say “deficits, down” but he still added $1 trillion to the debt over the past year. When Obama took office the national debt was $10.6 trillion.
It will soon be $18 trillion, and he’s not done yet. Obama’s deficits and debt display the stunning audacity of his cynicism and hypocrisy, as he once characterized Bush’s debt as “irresponsible” and “unpatriotic,” accusing Bush of abusing a “credit card from the Bank of China in the name of our children.”
Obama was right about Bush’s debt. But then he proceeded to nearly double Bush’s debt. Young people take note: by his own logic, Obama has waged war on your future.
And seniors, your Social Security is now being raided to pay debts. The economic fix is in. For Obama to suggest otherwise is insultingly disgraceful. Economic lesson: for every one dollar Obama has spent, one dollar plus interest will be squeezed from future taxpayers — from the future productive capacity of America itself. With the current debt, that’s over $150,000 per taxpayer. Seen another way, babies born today are already over $150,000 in debt.
‘Stock Market, Up.’
First, this does little to help the poor and middle class. The beneficiaries of the Federal Reserve’s ZIRP/QE policies propping up the stock market are the wealthiest 1%. Second, what goes up must come down. The next crash will be far worse than 2008. The Fed is out of tricks, the U.S. is trillions more in debt, and Obama has unsustainably expanded the welfare/warfare state.
Furthermore, 50% of all U.S. pension fund assets are invested in the stock market. Think through the implications of the next crash. In short, Obama has overseen the formation of an even more radically dangerous, more boom-bubble-bust-prone casino economy characterized by greater moral hazard, widened inequality, and dollar-debasing inflation.
This assertion discounts those who have simply given up looking for work and conceals the nature of the jobs that have been added, many of which are part-time, non-bread-winner jobs. John Williams at shadowstats.com pegs the real unemployment rate at nearly 25%. Whatever the case, the truth is that labor force participation has dropped. Almost 100 million Americans are not working. David Stockman notes that this some-40% of Americans “do not contribute to current production and must be supported either by family breadwinners or the state—-and nowadays especially the latter… (this) ratio is still rising and the already crushing burden of the welfare state will weigh ever more heavily on an economy that is visibly failing as measured by any of the fundamental trends of performance.”
Furthermore, Gallup notes that 15.3% of Americans are underemployed. The BLS’s latest report states that “jobs created” are down over 150,000 last month, and that 500,000 full-time jobs were lost while 800,000 part-time jobs were gained. The majority of new jobs went to those between the ages of 55-69 while those between 25-54 lost 10,000 jobs. Financial analyst Thad Beversdorf notes that the BLS’s pre-manipulated raw data shows a rise in public sector jobs and a decline in private sector jobs.
Also, according to the BLS, 20% of American families do not have a single member in the work force. Based on employment-to-population ratios, the unemployment rate is closer to 12%. Real wages and salaries have only recovered to the 2008 recession levels and retail sales are below the 2002 recession levels. Also, real household incomes are far below historic norms. And, the Federal Reserve Bank of Philadelphia has noted that 18% of employers cut full-time workers because of Obamacare.
What about spending and inflation? Explains economist Lee Adler: “Excluding those at the top, Americans are earning less and spending less.” Adds economist Wolf Richter: “those at the lower-income levels, those who’ve gotten ripped off by inflation and wages, have become terrible consumers in an economy dependent on consumer spending.” And, studies indicate that 126 million Americans live in households on welfare. This is 40% of the U.S. population, up from 35.4% in 2012.
The government simply manipulates the data and measurements to its liking. But everything is still inflated: the stock market, housing costs, education, and most noticeably, food prices. According to the USDA: “the food-at-home CPI has already increased more in the first 6 months of 2014 than it did in all of 2013.” The price of pork is up 12%. Beef, 10.4%. Fruit, 5.8%, and vegetables 2%. Bloomberg notes that butter prices have increased 83%, surging 71% this year alone. The BLS reports the price of bacon to be at an all-time high, and that ground beef surged 16.5% in June alone. Al Feucht, a meat-seller in Wisconsin, says “It’s painful to see. The prices are changing every day and I’m scrambling to see how I can sell at a good price and still make money to survive…” There’s also the phenomena of “shrinkflation” to consider. But, the greater point here is that inflation works as a hidden tax, punishing savers and those on fixed incomes: the poor and middles class.
Obama is clearly distorting the devastating economic reality. The point is that by his own logic, Obama’s irresponsible and unpatriotic policies amount to warfare on your economic freedom.
The question is, what are you going to do about it?