US Economy under Obama

9 Oct

Barack Obama inherited an economy that was in the worst crisis in thirty years. Lets review what he promised and the results.

With the unemployment rate rising, the incoming Democratic administration passed an $800 billion stimulus package. Economists Christina Romer and Jared Bernstein presented a report that projected unemployment with and without the stimulus plan.

The report was, obviously, way off on its presumptions and conclusions. Where the report predicted (with the stimulus) that unemployment would not go above 8%, in actuality it has not gone below 8% until this past month. And the main reason for the decline in unemployment has been people stopping looking for work:

Last December’s unemployment rate was 8.5 percent.

So Romney said specifically:
“The reason it’s come down this year is primarily due to the fact that more and more people have just stopped looking for work”

The above analysis shows he’s correct. Whereas the headline unemployment rate has dropped from 8.5 percent to 7.8 percent this year, if there were the same number of people looking for work today, as there were in December 2011, the unemployment rate would have only dropped from 8.5 percent to 8.35 percent today.

Household income has fallen 8.2% under Obama. Joe Biden said that the “middle class has been buried the last four years”, and he’s right:

1. According to an analysis of Census Bureau data by Sentier Research, August 2012 median annual household income of $50,678 — 5.7% lower than the median of $53,718 in June 2009, the end of the recent recession and beginning of the “economic recovery.”

2. Real disposable personal income has been flat since the recovery began and remains at depressed levels

3. The U-6 unemployment rate — which includes part timers who wish they had full-time work — remains at stratospheric levels

In August 2010, Obama’s Secretary of the Treasury said “welcome to the recovery.”

We have an $800 billion stimulus that appears to have been wasted, $5.1 trillion added to the national debt since 2009, and unemployment that would still be 10.7% if not for workers who simply stopped looking for a job. We need a recovery from the recovery.

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