Obamanomics

[Mr. T]

The rout of Obamanomics: "In February 2009,

 

I published a commentary in the Wall Street Journal entitled ‘Reaganomics v. Obamanomics,’ which pointed out that President Obama’s economic policies were exactly the opposite of President Reagan’s. I predicted that as a result they would produce exactly the opposite results. Art Laffer has produced a far more sophisticated argument advancing a similar analysis. But the June unemployment report released last Friday shows an economy doing much worse at this point than even I expected.”

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But the June unemployment report released last Friday shows an economy doing much worse at this point than even I expected. More than 30 months after the official start of the recession, the economy is still losing jobs, with non-farm payroll employment declining by 125,000 jobs in June. A total of 652,000 workers fled the workforce in June, and therefore were no longer counted as unemployed, which is why the unemployment rate fell from 9.7% to 9.5%. That follows 322,000 who dropped out of the workforce in May, for a total of nearly a million workers dropping out of the labor force in the last two months alone. If those million workers had remained in the workforce looking for work, the unemployment rate would be 10.1%.

 

Moreover, average hours worked per week dropped for all workers, as did average hourly earnings.

 

 

President Obama's Fairy Tale Bedtime Story

 

But there was President Obama in a highly revealing speech on June 30 in Racine, Wisconsin, congratulating himself for having saved America from another Great Depression. He said, "Now every economist who has looked at it has said that the Recovery Act [stimulus bill] did its job," starting a passage that will soon be memorialized as another chapter in Aesop's Fables. As Obama said those words, on the very same day in the Wall Street Journal was a commentary by Allan Meltzer, Professor of Economics at Carnegie Mellon University, entitled, "Why Obamanomics Has Failed." Maybe Obama just hadn't read the Journal yet that day.

 

But Obama continued in Racine, "[The stimulus bill] put a brake on the collapse of the economy. We avoided a Great Depression. We are now growing again." (Emphasis added.)

 

Instead of avoiding a Great Depression, however, President Obama is leading us into one. The National Bureau of Economic Research (NBER) scores the recession as officially starting in December, 2007. Now 31 months later, with unemployment still near 10% and the work force still declining, NBER says it still cannot determine an official end to the recession. The longest recession since World War II previously has been 16 months, with the average being 10 months. By next month, the period since the last recession started will be twice as long as the previous postwar recession record.

 

Yet, now we hear talk of another, double dip, downturn, reflected in the newly declining markets, where the S&P 500 is now lower than the price of gold for the first time in history. The comprehensive Obama tax rate increases scheduled for next year stand poised to pour napalm on this developing bonfire. For all the talk of how uncertainty is hurting the economy, the certainty of those tax rate increases once they become effective will be far worse.

 

A renewed, double dip, downturn, 31 months after the recession started and with unemployment already near 10%, would be a depression scenario, far worse than I have been predicting here and elsewhere for over a year now. While I have discovered from my sojourns on "progressive" talk radio ("progressive" is a polite word for socialist) that the Left is now denying history. For hundreds of years Western economies have been plagued by the business cycle, with the economy falling into downturns, and then naturally recovering. Since 1945, there have been 12 such downturns in the U.S., with the economy recovering sans Obama pixie dust within 16 months at the longest.

 

By this standard, the recovery was overdue a year ago. Moreover, the sharper the downturn, the stronger the recovery. But compared to the last downturn of similar magnitude, the 1981-1982 recession, the renewed economic growth today President Obama has been so vigorously trumpeting has been less than half what it should be. The positive economic results Obama can and does point to are way too little, way too late.

 

Two Christmases ago, I feared that by now Obama and his socialist policies would be riding the wave of inevitable recovery, before his policies crashed the economy in what I later called The Coming Crash of 2011. But politically as well as economically, it is all disintegrating faster even than during the Carter Administration, where 1978 was a hopeful year for conservatives that mostly didn't pan out. President Obama is on the same trajectory as President Carter, times some multiplier of Keynesian foolishness.

 

 

More Here

[rich4eagle]

I think you have no clue about Raeganomics and yur lie about Obamanomics is the ADmins reaction to a disaster instead of starting that disaster which was Reaganomics and culminated by Bush...........but denial of all facts and reality is the new mantra of the republican party............

 

love destroying us and do all you can to kill Obamas hope to end the self destruction..................the new Republican Way.......screw yourselves to death and blame democrats

[Mr. T]

Can anyone explain what rich is saying? Sometimes it is hard to read his sentences, its almost like a 4 year old is writing them or he is drunk and in love from drinking to much Obamao kool aid.

[Westside Steve]

Can anyone explain what rich is saying? Sometimes it is hard to read his sentences, its almost like a 4 year old is writing them or he is drunk and in love from drinking to much Obamao kool aid.

 

 

He's always been a little looney.

Squealed about war and wasteful government spending for 6 years now apparently doesn't care.

Probably paraquat syndrome.

WSS