Tags: obama | kotkin | OC Register | american dream

OC Register's Kotkin: Obama's 'Transformational' … But in Wrong Way

OC Register's Kotkin: Obama's 'Transformational' … But in Wrong Way
(Dollar Photo Club)

Wednesday, 19 August 2015 07:04 AM

Orange County Register columnist Joel Kotkin, an urban studies fellow at Chapman University, is none too impressed with the economic accomplishments of President Obama.

"Barack Obama has always wanted to be a transformational president, and in this, at least, he has been true to his word," Kotkin writes. "The question is what kind of America is being created, and what future does it offer the next generation."

The transformation has been one toward regulation, Kotkin says.

"President Obama’s great accomplishment, arguably, has been to spur the evolution of a society that formerly rested on individual and familial aspiration, and turn it into a more regulated and centralized regime focused on broader social and environmental concerns," he states.

The results haven't been pretty, Kotkin says. He cites a Gallup survey showing that the portion of Americans who see “plenty of opportunity ahead” has plunged to 52 percent from 80 percent in 1997.

Weak wage gains may have something to do with that increasing pessimism. Wages rose only 2.1 percent in the 12 months through July.

Elsewhere on the economic front, historically, the U.S. economy suffers a recession every five to eight years, so given that our recovery is more than six years old, we may face a downturn soon.

And with monetary policy already in heavy-easing mode and fiscal policy hamstrung by the government's massive debt burden, the government's tools to combat any downturn are limited.

"As the U.S. economic expansion ages and clouds gather overseas, policy makers worry about recession," write Wall Street Journal reporters Jon Hilsenrath and Nick Timiraos. "Their concern isn’t that a downturn is imminent, but whether they will have firepower to fight back when one does arrive."

The Federal Reserve's target rate for federal funds now stands at a record low of zero to 0.25 percent. And while the central bank is expected to start raising rates soon, many economists expect the rate to top out at 2 percent, and not until late 2016 or 2017.

On the fiscal side, federal government debt has soared to 74 percent of GDP from 39 percent in 2008. That leaves little room for higher spending and/or lower taxes.

Related Stories:

© 2021 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
Economy
Orange County Register columnist Joel Kotkin, an urban studies fellow at Chapman University, is none too impressed with the economic accomplishments of President Obama.
obama, kotkin, OC Register, american dream
393
2015-04-19
Wednesday, 19 August 2015 07:04 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved