Thursday, August 23, 2012

The REAL Issue: Obamanomics Has Failed

“In President Obama’s imaginary recovery the ‘middle class is coming back’ and the ‘private sector is doing fine.’ But struggling families aren’t living in the same world, with stagnant unemployment, shrinking household incomes, and a crippling national debt that will burden the next generation. As president, Mitt Romney will actually deliver a middle-class recovery with 12 million new jobs and higher take-home pay.” – Ryan Williams, Romney Campaign Spokesman

After Nearly Four Years In Office, The Obama-Biden Team Thinks “The Middle Class Is Coming Back” And “The Private Sector Is Doing Fine”:

Vice President Joe Biden: “The Middle Class Is Coming Back.” BIDEN: “Folks, the middle class is coming back, they have been ravaged. They have been ravaged. But they are starting to come back.” (Vice President Joe Biden, Remarks At A Campaign Event, Minneapolis, MN, 8/21/12)
President Obama: “The Private Sector Is Doing Fine.” (President Barack Obama, Press Conference, Washington, DC, 6/8/12)

But Middle-Class Americans Are Suffering In A “Lost Decade” With Falling Incomes And Fewer Jobs:

Jobless Claims “Climbed Last Week To A One-Month High, Showing Little Progress In The Labor Market.” “The number of Americans filing applications for unemployment benefits climbed last week to a one-month high, showing little progress in the labor market. Jobless claims rose by 4,000 for a second week to reach 372,000 in the period ended Aug. 18 … The four-week moving average, a less volatile measure, increased to 368,000. … ‘It’s still very sluggish, and growth itself is implying we should not see any acceleration in hiring at this point,’ Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, said before the report. … The Labor Department revised the previous week’s figure up to 368,000 from an initially reported 366,000.” (“Jobless Claims In U.S. Climb For Second Week To One-Month High,” Bloomberg, 8/23/12)
  • CBO: “The Unemployment Rate Will Stay Above 8 Percent For The Rest Of The Year…” “The unemployment rate will stay above 8 percent for the rest of the year, CBO estimates, and the rate of inflation in consumer prices will remain low.” (“An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022,” Congressional Budget Office, 8/22/12)
Pew Research: “The Middle Class Has Shrunk In Size, Fallen Backward In Income And Wealth…” “Since 2000, the middle class has shrunk in size, fallen backward in income and wealth, and shed some—but by no means all—of its characteristic faith in the future.” (“The Lost Decade Of The Middle Class,” Pew Research, 8/22/12)
  • “For The First Time Since The End Of World War II, Mean Family Incomes Declined For Americans In All Income Tiers.” “Their downbeat take on their economic situation comes at the end of a decade in which, for the first time since the end of World War II, mean family incomes declined for Americans in all income tiers. But the middle-income tier—defined in this Pew Research analysis as all adults whose annual household income is two-thirds to double the national median —is the only one that also shrunk in size, a trend that has continued over the past four decades.” (“The Lost Decade Of The Middle Class,” Pew Research Center, 8/22/12)
“The Great Recession Officially Ended Three Years Ago, But Most Middle-Class Americans Are Still Feeling Pinched.” (“The Lost Decade Of The Middle Class,” Pew Research Center, 8/22/12)

42 Percent Of Middle-Class Adults Say Their Household’s Financial Situation Is Worse Now Than It Was Before The Recession. “The downbeat short-term perspective is not surprising in light of the heavy economic blows delivered by the Great Recession of 2007-2009 and the sluggish recovery since. About four-in-ten (42%) middle-class adults say their household’s financial situation is worse now than it was before the recession, while 32% say they are in better shape; an additional 23% volunteered that their finances are unchanged.” (“The Lost Decade Of The Middle Class,” Pew Research Center, 8/22/12)

“After Commencement, A Growing Number Young People Say They Have No Choice But To Take Low-Skilled Jobs…” “After four years of college, many graduates are ending up in jobs that only require the ability to operate a cash register with a smile. After commencement, a growing number young people say they have no choice but to take low-skilled jobs, according to a survey released this week. And while 63% of ‘Generation Y’ workers — those age 18 to 29 — have a bachelor’s degree, the majority of the jobs taken by graduates don’t require one, according to an online survey of 500,000 young workers carried out between July 2011 and July 2012 by PayScale.com, a company that collects data on salaries.” (Quentin Fottrell, “Trading Caps And Gowns For Mops,” Market Watch, 8/22/12)

President Obama’s Overspending And Skyrocketing Debt Will Leave Trillions Of Dollars That The Next Generation Will Be Forced To Repay:

“The Federal Budget Deficit For Fiscal Year 2012 … Will Total $1.1 Trillion … Marking The Fourth Year In A Row With A Deficit Of More Than $1 Trillion.” “The federal budget deficit for fiscal year 2012 (which ends on September 30) will total $1.1 trillion, the Congressional Budget Office (CBO) estimates, marking the fourth year in a row with a deficit of more than $1 trillion.” (“An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022,” Congressional Budget Office, 8/22/12)

Federal Debt Held By The Public Will Reach The Highest Levels Since The 1950s. “Federal debt held by the public will reach 73 percent of GDP by the end of this fiscal year—the highest level since 1950 and about twice the 36 percent of GDP that it measured at the end of 2007, before the financial crisis and recent recession.” (“An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022,” Congressional Budget Office, 8/22/12)

And What About The Private Sector? Business Owners Are Burdened By More Regulations And Greater Uncertainty In The Obama Economy:

Regulations Are Reducing Manufacturing Output By As Much As $500 Billion, Casting “Doubts On President Barack Obama’s Efforts To Trim Red Tape In The Federal Government.” “Regulations on U.S. manufacturing may reduce output by as much as $500 billion this year, according to an industry-sponsored study that cast doubts on President Barack Obama’s efforts to trim red tape in the federal government.” (Brian Wingfield, “Rules Reduce U.S. Manufacturing By $500 Billion: Study,” Bloomberg Businessweek, 8/21/12)

“The ‘Cost Of Health Insurance’ Continues As The Number One Small-Business Problem, A Position It Has Held For 25 Years.” (Holly Wade, “Small Business Problems & Priorities,” National Federation Of Independent Business, 8/12)

Over A Third Of Small-Business Owners Rate “Uncertainty Over Government Actions” As A Critical Concern. “Almost equally challenging for small-business owners is ‘Uncertainty over Government Actions’ which ranks fourth and is critical for 35 percent. In the last four years, the federal government approved legislation to overhaul the financial industry, the healthcare system and promote economic stimulus. The upheaval in policy changes is immense and will continue as the regulatory system works to implement the laws’ directives. In addition to the headline reform efforts, regulators of other government agencies are also broadening rulemaking efforts in areas of employment and the environment.” (Holly Wade, “Small Business Problems & Priorities,” National Federation Of Independent Business, 8/12)

“‘Environmental Regulations’ Leads The List Of Those Problems Moving Up The Ranking…” “‘Environmental Regulations’ leads the list of those problems moving up the ranking with a 20 percentage point climb from the 47th to 27th position. Small-business owners clearly felt the change in regulatory policy over the last four years. The severity of this problem differs greatly by industry, but across the board, all industries rank this issue as more severe than four years ago and find it more critical.” (Holly Wade, “Small Business Problems & Priorities,” National Federation Of Independent Business, 8/12)

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