In the run-up to the State of the Union message, in which Obama reportedly will focus on increasing upward mobility, it seems that there are others who don’t buy into the Obama b.s. about the “economic recovery.” (See the above-linked CNN article.) It’s heartening to see that there are others who have taken note of some of the same things I’ve been hammering on in this blog.
Here are the seven economic failures hi-lited in this article:
1. Workers are taking home their smallest slice of U.S. income on record.
… corporate profits now account for their largest slice of that pie on record, whereas the slice for workers has been steadily declining.
2. Inequality has widened.
… The richest 1% of American families have captured 95% of the income gains in the recovery period spanning 2009 to 2012 …
3. The job market still faces a gaping hole.
The economy needs about 1.2 million jobs to get back to the 2008 level, and once population growth is added to the mix … the economy still needs about 7.9 million jobs to get back to pre-recession conditions.
… the unemployment rate would be closer to 10% today, rather than its current 6.7%.
Where have you heard that before? I’ve been countering the employment report every month with a realistic estimate of unemployment – 10.3%, as of December. (See https://petemurphy.wordpress.com/2014/01/10/december-employment-report-a-big-disappointment-again/.)
4. The poverty rate remains high.
… the first time it has remained at or above 15% for three consecutive years since 1965.
5. Record number of Americans are on food stamps.
… 48 million Americans … the highest number since the program began in 1969.
6. The manufacturing revival was a mirage.
Overall, manufacturers have added only 568,000 jobs since 2010, about a quarter of those cut in the prior two years.
7. Global trade isn’t helping much.
Remember when the president unveiled an ambitious goal to double U.S. exports over a five-year period, starting in 2010? With one year left to go, he’s far from getting there.
After Obama signed a free trade agreement with South Korea in 2011, exports grew, but imports … grew even faster.
The president talks about trade and lifting exports, but ignores imports. That’s like reporting the results of a football game by giving the score of just one of the teams.
This has been one of my biggest pet peeves with the Obama administration, another that I’ve reported on monthly. (See https://petemurphy.wordpress.com/2014/01/07/manufactured-exports-lag-obamas-goal-by-record-margin-in-november/.)
The Obama administration has been an utter failure when it comes to fixing what ails the economy. He reneged on his campaign promise to address our trade imbalance and he turns a blind eye to illegal immigration while actively promoting further immigration liberalization. Wouldn’t it be wonderful to see him admit his failure and then step aside to make room for a real leader? Of course, in all likelihood, all we’ll get is another bench-warmer president like Obama and those who’ve preceded him for decades.