Thursday, July 25, 2013

The Social Justice President!

The President summed up his economic priorities  "This growing inequality isn't just morally wrong; it's bad economics," . "When middle-class families have less to spend, businesses have fewer customers. When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy. When the rungs on the ladder of opportunity grow farther apart, it undermines the very essence of this country." "That's why reversing these trends must be Washington's highest priority. It's certainly my highest priority." have had 5 is it going Mr. President?

Mr. Obama has focused his policies on reducing inequality rather than increasing growth. The predictable result has been more inequality and less growth. The rich have done well in the last few years thanks to a rising stock market, but the middle class and poor have not.  No President has done worse by the middle class in modern times.

By now the lackluster growth figures are well known. The recovery that began four years ago has been one of the weakest on record, averaging a little more than 2%. And it has not gained speed. Growth in the fourth quarter of 2012 was 0.4%. It rose to a still anemic 1.8% in the first quarter but most economists are predicting even slower growth in the second quarter. What has never arrived is the 3%-4% growth spurt during typical expansions.

One ponders.....does our President know how badly he has done?  Did he not know what a historic opportunity the great recession presented (as recessions do) to promote economic growth then claim the credit?   Wait!....does he really believe in this Social justice crap!?

The core problem has been Mr. Obama's focus on spreading the wealth rather than creating it. ObamaCare will soon hook more Americans on government subsidies, but its mandates and taxes have hurt job creation, especially at small businesses. Mr. Obama's record tax increases have grabbed a bigger chunk of affluent incomes, but they created uncertainty for business throughout 2012 and have dampened growth so far this year.

The food stamp and disability rolls have exploded, which reduces inequality but also reduces the incentive to work and rise on the economic ladder. This has contributed to a plunge in the share of Americans who are working—the labor participation rate—to 63.5% in June from 65.7% in June 2009. And don't forget the Fed's extraordinary monetary policy, which has done well by the rich who have assets but left the thrifty middle class and retirees earning pennies on their savings.

Its almost like...he is trying to do this.....with the support of misbegotten souls like Baxter and Terry, he has intentionally trashed the economy....with Justice for All! form a permanent class of perma-liberal voters!

Mr. Obama would have done far better by the poor, the middle class and the wealthy if he had focused on growing the economy first. The difference between the Obama 2% recovery and the Reagan-Clinton 3%-4% growth rates is rising incomes for nearly everybody.


terry said...

When I read words "he intentionally trashed the economy" I stop reading! That doesn't even pass the laugh test

Jim G. said...

so what other explanation do you have for....historically low post recession growth? Historically high food stamps?

You don't think they WANT to enlarge the permanent underclass to lock in their votes?

You really don't, you can't see that strategy?

Baxter said...

President Obama has presided over a doubling of the Dow and he has cut the inherited annual deficit in half. We have emerged from the financial crisis as the strongest economy in the western world as the Europeans adopted the GOP's austerity approach and their growth subsequently fizzled.

Suggestions that Obama intentionally trashed the economy - one which is growing about a million more jobs a month than the one he inherited - is utterly absurd.

Baxter said...

This was not your garden variety, business cycle recession. The whole world is de-leveraging; individuals, corporations, and governments. The Boomer demographic tailwinds have turned into headwinds that will be with us for a generation.

I think the growth that President Obama's policies have produced is remarkable and superior to our peers. Obviously, the markets agree with me.

The food stamp program ("SNAP") has not changed. The increased usage is due entirely to the economic collapse and it's fallout. For that you can thank George W Bush, and I do not think it was part of his strategy. I think that he was doing the best he could.