To the Editor,
Read your article about giving Obama credit for the current economy but I think people have short memories. All these charts being shared on liberal Facebook pages mask the true disaster of the Obama economy. Look what’s behind all the charts, and you see pretty clearly that the economy recovered in spite of Obama rather than because of him. Its frankly ludicrous and pretty misleading to claim Trump is benefiting from Obama’s economy or that this economy is the continuation of Obama’s efforts.
Here are some facts and reminders:
In the first two years of his term, despite the recession being in full force, he put in place a new entitlement (Obamacare) with a whole host of new taxes and heavy costing compliance regulations. This had two primary effects. First, the “one plan covers all” law raised the deductable costs and premiums for everyone, business and personal alike.
This meant people and companies started shifting previously disposable monies into reserves for those. Second, it created tremendous uncertainty in the market as more and more regulations and costs were being added at the time beyond Obamacare itself.
Small to medium sized companies then began shifting to part time workers to avoid regulatory costs and allow resizing flexibility. Large companies began to simply put themselves into a profitable position and began hoarding cash while waiting for a more business friendly environment. Does anyone remember companies hoarding cash? Large companies did the same and the economy just started moving sideways.
With little or no growth going on people started leaving the workforce. The unemployment rate did go down but it was mainly because people either left the workforce or stopped looking for work. It was because the workforce was shrinking! This is not hard to prove if you just look at the labor participation rates during Obama's term. In Jan 2008 it was 66.2%. when Trump won the Presidency and took over, it was 62.4. Nobody
apparently wants to post that .
What about the Stock market? Well it is true the stock market grew,
almost tripled under Obama, but what is never mentioned is why it grew. Obamanomics supporters always seem to leave that part out. Since business had started hoarding cash they started paying higher
dividends. This obviously caused investors to buy stocks INSTEAD of investing in startups because basically there was very little else to put it. Also, 401ks if anyone remembers were pretty anemic. Remember how yours did under Obama compared to now? Significant IPOs were virtually nonexistent. Does anyone remember their 401k taking a hit? I do!
How about any of these other wonderful events of the Obama economy? The wonderful environmental investments like Solyndra... wasting billions of our tax dollars and others that failed? They were supposed to be part of the great green jobs initiative he was going to use to stimulate the “new” economy with.
Does anyone remember the administration labeling the economy flat lining as the “new normal” with some jobs never coming back?
Because people had left the workforce or quit looking, safety net systems swelled like crazy. Do you remember Nancy Pelosi at one point actually marketing them saying food stamps were good for stimulating the economy. Does anyone remember that?
How about the wonderful failed $800b stimulus with Obama later acknowledging “I guess those shovel ready projects weren't as shovel ready as we thought”. Obama used them primarily for Democratic support organizations and unions. Do you remember Democrats arguing for a second one because the first one wasn’t apparently big enough? Clearly nothing was working at that point.
Or how about certain Obamacare taxes being so punitive that medical device manufactures left the country to get away from them. Eventually that one got delayed but it was too late.
Or how about the Cadillac insurance taxes? Boy unions loved that. Eventually even Democrats called them oppressive and worked to repeal both. Does anyone remember that?
Or how about Democrats, due to the no growth economy, extending unemployment benefits up to 73 weeks beyond the existing 26 because it was clear things were not working.
How about the term “jobless recovery” as literally trillions were being held off shore to avoid Obamas great anti-business economy. Then Democrats trying to pass punishing taxes to leave the US. Does anyone remember the term “corporate inversion” as companies began to flood off shore? Boy the economy was roaring wasn’t it?
Or how about the massive regulatory compliance costs he implemented through bureaucratic regulation. All kinds of lovely reporting and operational business requirements. You know, like expanding the EPA authority to cover ponds in your back yard. Forcing tons of environmental costs and studies. This of course targeting the oil and gas companies in order to delay or kill various endeavors. This in one of the biggest employment sectors in the country. Eventually the biggest problem for US companies in multiple CNBC, CNN, and fox/wsj surveys was stated as regulatory compliance costs.
Or how about trying to kill what was left of the coal industry by regulation. Man that helped jobs.
Does anyone remember banks overseas closing US citizens bank accounts because they didn’t feel like opening their books to the IRS?
Remember the wonderful spike in state and federal employees between 2008-2011? That was supposed to stimulate a ton of growth like the new deal.
Or how about in 2013 where Obama was trying to explain why, for the first time in US history, more small businesses (the traditional engine of recession recovery) were closing rather than opening. He had found himself at that point presiding over the slowest recession recovery in US history.
Or how about his wonderful changes to immigration that started counting people caught at the border as being deported. On the surface looking like he was deporting a ton of people while masking the thousands and thousands under catch and release that got in and helped drive down labor rates. Boy that was a big job creator.
Lastly, The fact is that Obama's economy was so “great” the Democrats lost @1000 elected seats nationally because of it.
The Trump economy is completely different. His unemployment numbers on the chart continue down however the he’s doing it with a now growing workforce as the participation rate is now 63.4%.
Investment and growth are now in full force as the biggest problem businesses now face is finding skilled workers. Millions of jobs go unfilled. Wonder what the rate would be if those jobs got filled? This also is pushing labor rates up.
The stock market continues to sky rocket but new investment is now the big deal and significant IPOs are going crazy. Companies are now starting to move back to the US instead of the corporate inversion policies Obamanomics stimulated.
Clearly people can use just plain charts to say whatever you want but frankly its what’s never mentioned that makes the difference.
IMO it will remain so in November.