Bill Clinton flew to New Hampshire and unsealed an indictment against Obama’s economy.
Campaigning in Exeter, Hillary’s “secret weapon” told Granite State voters Monday, “I think this election is about restoring broadly-shared prosperity, rebuilding the middle class, giving kids the American dream back.”
The former president may have seemed to hammer some far-right Republican president who gleefully impoverishes average Americans while enriching his fellow plutocrats.
However, a far-left Democrat has been president for seven years this month. Thus, the economic stagnation that Clinton critiqued is Obama’s.
In Obama’s first or second year, Clinton might have managed to blame Baby Bush’s massive spending, red tape, and nationalizations for America’s economic woes and middle-class anxieties. But in Obama’s seventh year, this excuse has rusted.
Obamanomics has narrowed prosperity, dismantled the middle class, and snatched the American dream from America’s kids.
The Congressional Joint Economic Committee has detailed this devastation. “The Obama recovery has failed hardworking Americans,” JEC analyst Jeff Schlagenhauf reported last month. “On economic growth, private-sector job creation, and income growth, the Obama recovery ranks far below average.”
The Great Recession began in December 2007 under Bush and ended in June 2009 under Obama. JEC compared today’s 77-month recovery with other post-1960 rebounds after recessions that exceeded 12 months. In the 25 quarters since the Great Recession, Obama’s average, inflation-adjusted annual gross domestic product growth has limped ahead at 2.2 percent. During Ronald Reagan’s equivalent interval, such GDP growth galloped at 4.8 percent.
To avoid mediocrity, Obama need not have outrun the Gipper. He merely had to outpace the average recovery’s 3.9 percent tempo. Alas, as JEC found, “On economic growth, the Obama recovery ranks dead last.”
Reagan and Obama’s total-output gap is a whopping $10.6 trillion. By now, Reagan’s 3.9 percent annual increase in real per-capita GDP growth would have put $8,255 more in every American’s pocket. The average recovery’s 2.8 percent growth would have generated $4,551 more wealth per person. Instead, Obama’s recovery has crawled at half the average speed — just 1.4 percent.
Under Reagan, private-sector jobs expanded 23.6 percent, versus the average recovery’s 17.0 percent, and 11.6 percent under Obama — less than half of Reagan’s performance. If Obama had equaled Reagan, America would enjoy some 12.9 million additional private-sector jobs.
November’s 5.0 percent unemployment rate ignores the 94 million Americans over age 17 who have abandoned the job market. Labor force participation is just 62.5 percent (down from 66 in December 2007) barely above 62.4 in 1977.
Under Reagan, real after-tax income per person grew 3.1 percent, compared to a 2.5 average, and 1.2 under Obama. Had Obama delivered like Reagan, every American would have accumulated an extra $21,306 since June 2009.
Obama’s 2.2 percent annual GDP growth has been just over half the 4.1 percent yearly hike in federal revenues. Between fiscal years 1965 and 2014, federal receipts averaged 17.4 percent of GDP. Fiscal year 2015’s figure was 18.2 percent. Uncle Sam is fat and happy.
Meanwhile, only 3.6 percent of Americans under 30 own private businesses, a 24-year low, down from 10 percent in 1989. The 14.3 percent poverty rate for 2009 was 14.8 in 2014, the census’ latest reading. Sentier Research reports that 2015’s real median household income of $56,700 was right where it was in 2007. America’s middle class has wasted eight years on the road to nowhere.
For this anemia, please thank Obamacare, Dodd-Frank, the war on coal, green mandates, a flopped $833 billion “stimulus,” the 35 percent corporate tax (the civilized world’s highest), class warfare, and Obama’s 77 percent national-debt increase — from $10.6 trillion to $18.8 trillion.
Obama and the Democrats typically pin this fine mess on Bush. His compassionate socialism certainly created widespread wreckage. But America hired Obama to change that. If Bush still is to blame, then Obama has accomplished nothing in seven years. As Bill Clinton revealed: Obama is either an economic Typhoid Mary or an economic Rip Van Winkle.
Deroy Murdock is a media fellow with the Hoover Institution on War, Revolution, and Peace at Stanford University. Read more reports from Deroy Murdock — Click Here Now.
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