Elkhart, Indiana: Obama Touts His Economic Success

Last week, while giving a speech on the economy in Elkhart, Indiana, President Obama said this:

“By almost every economic measure, America is better off than when I came here at the beginning of my presidency. That’s the truth.”

The problem with that statement is that it isn't "the truth".  The folks at Zero Hedge, a business, stock market, and economics site, presented this series of 9 graphs to refute it:

Pink Shading Obama's Term in Office...Click on image to enlarge

This is a President who has increasingly presided over one negative economic record after another.  And, there is another not included in the above records: The highest number of Americans in poverty --  nearly one in seven -- since Lyndon Johnson declared a "War on Poverty" more than 50 years ago.  Also, Obama is slated to have the 4th worst economic record in the history of the country.  Only Herbert Hoover, Andrew Johnson, and Teddy Roosevelt were worse.

This President not only thinks, but knows, that most people will believe his lies because they don't understand all the facets and facts that make up the economy, and aren't interested in researching what he says.  And, for sure, the liberal media isn't going to do their job and expose his lies.

References:

Obama visits Elkhart to discuss economy: http://www.idsnews.com/article/2016/06/obama-in-elkhart

Chart Source: These Are The 9 Zero Hedge Charts Showing "Obama's Recovery" That Angered The Washington Post: http://www.zerohedge.com/news/2016-06-03/these-are-9-zero-hedge-charts-showing-obamas-recovery-angered-washington-post

Record 46.7 Million Americans Live In Poverty; Household Income Back to 1989 Levels: http://www.zerohedge.com/news/2015-09-16/record-467-million-americans-live-poverty-median-houshold-income-back-1989-levels

Barack Obama's Sad Record on Economic Growth | RealClearMarkets:  http://www.realclearmarkets.com/articles/2016/02/01/barack_obamas_sad_record_on_economic_growth_101987.html

Obama's Alternate Universe on the Economy

Last Friday, when the Bureau of Labor Statistics announced that the unemployment rate had fallen to 4.9% -- the lowest since the recession -- and President Obama could hardly contain himself celebrating this feat and taking credit for it.  Then, he went on to claim that, contrary to the GOP predictions of gloom, the economy is "durable".

Putting the 4.9% unemployment rate aside as a mere quantitative number, the issue that bothers most Americans is the "qualitative" status of our economy.  In that area, Obama appears to be living in an alternate universe where his reality is much different than ours.  A reality that seems to forget that he promised that we would see a 5% unemployment rate by July of 2013 if we passed the stimulus package. Not the more than two years later when, in October of 2015, 5% unemployment was finally achieved.

While he was quick to jump in front of the microphones to take credit for the 4.9% unemployment, I have never seen this President come out and lay claim to the following:

• A record 47 million people in poverty and 45 million needing food stamps to survive.  
• The fact that real median household incomes are back to where they were in 1989.  
• That the real unemployment rate is actually 9.9% when you include people, who (1) in frustration, have stopped looking for work; or, (2) are forced to work part time for for a lack of full time work; or, (3) are underemployed and working at jobs they are overqualified for.

In addition, Obama seems to ignore that realityh that the economy had grown by just seven tenths of a percent in the fourth quarter of last year, and overall, under his presidency, has only grown at a rate of 1.78%. Well below the average economic growth in this country since World War II, and before he too office, of 3.24%.

There are many more statistics I could quote, but these are the ones that really impact the average American.  They are the ones Americans feel and that are mostly in direct contradiction to Obama's "good economy" claims.

References:

Obama Celebrates 'Durable Economy' As Unemployment Drops Below 5 Percent: http://www.npr.org/sections/thetwo-way/2016/02/05/465686010/u-s-added-151-000-jobs-in-january-unemployment-dropped-to-4-9-percent

Record 46.7 Million Americans Live In Poverty; Household Income Back To 1989 Levels: http://www.zerohedge.com/news/2015-09-16/record-467-million-americans-live-poverty-median-houshold-income-back-1989-levels

Food Stamp Beneficiaries Exceed 46,000,000 for 38 Straight Months: http://www.cnsnews.com/news/article/ali-meyer/food-stamp-beneficiaries-exceed-46000000-38-straight-months

Record-breaking 11M receive Social Security disability benefits: http://nypost.com/2014/05/21/record-breaking-11m-receive-social-security-disability-benefits/

2013: Where’s that 5% unemployment rate Obama promised by now?: https://www.aei.org/publication/wheres-that-5-unemployment-rate-obama-promised-by-now/

Real Economic Growth: https://research.stlouisfed.org/fred2/series/A191RL1Q225SBEA

United States GDP Growth Rate - Trading Economics: http://www.tradingeconomics.com/united-states/gdp-growth

Which Presidents Have Been Best for the Economy?: http://www.usnews.com/news/blogs/data-mine/2015/10/28/which-presidents-have-been-best-for-the-economy

Are We Really Better Off Since Obama Took Office?

In front of adoring crowds at one of his all-too-many campaign style events, President Obama has claimed that "By almost any measure, we are better off since I took office" or that America is stronger under his watch.

The problem with such statements is that they are factually untrue when looking at the broader state of our union.

Sure, the President can claim that overall unemployment is down from where it was when he took over the reins of government in January 2009.  But, to get there, overall unemployment rose to a rate of 10% in the first year-and-a-half of his presidency.  Something that the so-called "stimulus" was supposed to avoid by promising that the unemployment rate wouldn't go above 8%. Even now, 5 years passed the end of the official end of the recession, this country still has an unemployment rate that is a full point above pre-recession levels.

Our major cities have extraordinarily high unemployment rates.  Chicago, Obama's home town, is still at 8.0%; and, that's just recently down from a January 2014 rate of 9.6%.  Detroit, now in bankruptcy, had an unemployment rate of  17.7% in July.  A city like Atlantic City, that depends heavily on Americans spending leisure-time money, is suffering from cash-strapped tourists unable to indulge in what they have to offer. The casinos are closing and the unemployment rate sits at 13.7%. More worrisome is the fact that our three largest cities -- Los Angeles, New York, and Chicago -- are dangerously close to following Detroit into bankruptcy.

The Gross Domestic Product (GDP) is stuck at a 5-year growth rate of about 2%. This is, at least, the worst recovery since World War II and, some say in the history of the United States when using alternate methods of calculating GDP.
Then there's the overall economic health of America.  For 5 straight years the median incomes of this country have fallen and income inequality has risen to a record high.  Half the jobs created under this President's watch were low income/low paying.  When he took office, only 30 million Americans were on food stamps.  Today, that number is 47 million; a 56% increase.  Similarly, only 38 million Americans were living in poverty.  Today, that number is a record 47 million and has stood at 15 percent of the population for the last 2 years. Thus, as the population grows, so does the amount of people left in poverty.

Of course, the real elephant in the room is the amount of debt that Obama has left us with; a number that only gets worse by the day.  At the beginning of his first term, the federal debt was $10.6 trillion.  Today, it is closing in on $18 trillion; just $250 billion from the current number (as of this writing) of $17.756 trillion. A number that, for the first time in this nation's history, is greater than the total annual economic output of the country.  Of those advanced economies in the world, only Portugal, Italy, Ireland, Greece and Spain can claim debt levels above their economic output. All of which are near bankruptcy and on the brink of bringing the European Union to its knees.

When we see people standing behind President Obama and nodding in agreement that things are better, you have to wonder what planet they're from.  Most other Americans (74% in one poll) still think that we never recovered from the recession.  And, in so many ways, they're right.

References:

By almost any measure, we are better off since I took office: http://www.realclearpolitics.com/video/2014/07/10/obama_by_almost_every_measure_we_are_better_off_than_when_i_took_office.html

Obama claims US is 'stronger' than 'when I first came into office' as economy weakens, debt soars, America loses global influence and border crisis deepens: http://www.dailymail.co.uk/news/article-2722926/Obama-claims-US-stronger-I-came-office-economy-weakens-debt-soars-America-loses-global-influence-illegal-immigrants-flood-border.html

Half Of The Jobs Created During The Recovery Were Low-Paying: http://thinkprogress.org/economy/2013/05/14/2008591/jobs-recovery-low-paying-minimum-wage/

Chicago Unemployment Rate Falls to 8.0%: http://www.worldbusinesschicago.com/news/chicago-unemployment-rate-jul2014

Detroit Unemployment Rates:  https://ycharts.com/indicators/detroit_mi_unemployment_rate

Unemployment rises in most US states in July: http://www.detroitnews.com/article/20140818/BIZ/308180072

 Another Atlantic City Bust: Trump Plaza Closes: http://abcnews.go.com/US/wireStory/trump-plaza-4th-atlantic-city-casino-shutdown-25528499

3 huge cities flirting with bankruptcy: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy

Obama’s economic recovery: officially the worst in US history: http://poorrichardsnews.com/post/41366829334/obamas-economic-recovery-officially-the-worst-in-us

Median Income Falls For 5th Year, Inequality At Record High: http://www.huffingtonpost.com/2013/09/17/median-income-falls-inequality_n_3941514.html

47 million Americans on food stamps: http://img.washingtonpost.com/blogs/wonkblog/files/2013/09/SNAP-participants.jpg

That’s rich: Poverty level under Obama breaks 50-year record: http://www.washingtontimes.com/news/2014/jan/7/obamas-rhetoric-on-fighting-poverty-doesnt-match-h/?page=all

America's Poverty Rate Stuck At 15 Percent For Second Straight Year: http://www.huffingtonpost.com/2013/09/17/poverty-america-census_n_3940812.html

 74% said we are still in a recession: http://patch.com/new-hampshire/concord-nh/is-the-recession-over-yet#.VBR1qmNAVLU

U.S. Federal Debt Exceeds GDP: http://jamesviser.com/?p=995

For Some Workers, A Hike In The Mininum Wage Can Cost Them Thousands!

If you are a single parent with at least one child, being paid minimum wage and making less than $15,730, the government says you're in poverty.  As a result, you are eligible for all kinds of public  programs like housing assistance, food stamps, Medicaid, child care assistance, a free home phone and cellphone, Earned Income Tax Credits, and no income tax.  When the state of Pennsylvania itemized all those benefits it came to just under $55,000 in gross combined income for a single parent making up to $15,730.  $57,327 for a welfare mom/dad making $29,000:

Click to enlarge chart

Other states could be higher or lower depending on the cost of living for that given state; but, Pennsylvania approximates the average of all benefits for the contiguous 48 states.

Now, if Obama and the Democrats are successful in increasing the minimum wage by 41% to $10.10 an hour, anyone who is earning a minimum wage and in poverty will see thousands of dollars in benefits just go away.  On top of that, those losing their benefits will have to start paying taxes instead of receiving cash back from their previous Earned Income Tax Credit refunds.

Another reason why raising the minimum wage will make some Americans a lot poorer.

Poverty Pays

Every year, the federal government establishes the income thresholds to determine whether or not someone is in poverty.  Currently, if you are unmarried and without children and making less than $11,139 a year, the government then says that you are in poverty and eligible for some or all of the 80 different federal welfare programs and hundreds of state programs that are designed to be so-called safety nets for our nation's poor.  Similarly, if you are an unmarried parent with 2 children under 18 and making less than $17,374, you are also in poverty.

Once in poverty, you then have access to free health care through Medicaid; free food under the food stamp program;  free telephone and cell phone services; free child care; and the list goes on and on.  None of which is ever considered to be income or taxed.  In fact, if you are in poverty and do file a tax return, you will not only receive a refund for any taxes that you might have paid, but, under the Earned Income Tax Credit laws, you are probably eligible to get even more money back from the government.

But all these "free" programs have a value.  For example, being on Medicaid with two children is probably worth about $12,000 to $13,000 year because that would be the cost if that Medicaid recipient had to pay for that insurance themselves.   Knowing this, Senator Jeff Sessions and his staff set out to convert all these programs into cash equivalents so he could determine how poor the people in poverty really are in this country; and the results are shown in this chart:

Clearly, the chart shows that you are better off  being a household in poverty than being an average middle class household; and, by a factor of 20%.   Obviously, someone who knows how to work the system can do quite well for themselves.   This is why studies have shown that the poor in this country typically have a car, at least one big screen TV and, air conditioning. 

Something is seriously wrong with a system where you are better off being poor than working.  Maybe that's  why so many millions have given up looking for work or are satisfied to be in low paying jobs.  As noted before, our workforce is literally being destroyed; while, at the same time, we are creating a society that is increasingly dependent on government.  If you don't think that's a bad thing, just look at Greece today.

References:

---  Federal Poverty Table:  http://images.flatworldknowledge.com/rittenmicro_2.0/rittenmicro_2.0-fig19_004.jpg

--- The Blaze.com: Source of Chart above: http://www.theblaze.com/stories/the-welfare-spending-chart-you-wont-want-to-see/

---  Heritage Foundation: Understanding Poverty in the United States: Surprising Facts About America's Poor: http://www.heritage.org/research/reports/2011/09/understanding-poverty-in-the-united-states-surprising-facts-about-americas-poor

Thanksgiving? 47 Million Americans On Food Stamps

The recession ended in June of 2009; 5 months after Obama took office.  According to our President, that signaled that America had turned the corner from one of the worst recessions that this country had ever faced.

If that was true, why are 47 million people, today, on food stamps; up from roughly 32 million when Obama took office and up from 27 million when the recession began in December of 2007?  And the numbers just keep growing at a faster and faster rate; as can be seen from this chart:

On this day of Thanksgiving, this is a said commentary.  Literally, 1 out of every 6 Americans depend on the government for their food.  A shameful statistic for a country that supposedly had so much greatness.  This, to me, is another one of the President's legacies of failure.  A sure sign that Americans are only getting poorer under Obama, as the eligibility for food stamps keeps rising.  This isn't redistribution of wealth.  Instead, it represents an increasing destruction of any financial independence that our previously low-income and middle-income American families once had.

--- Chart Source: Reflections of a Rational Republican: http://reflectionsofarationalrepublican.com/2011/08/09/bush-vs-obama-food-stamps/

The Current Rise In Liberalism Is Actually Being Fueled By The Detrimental Effects of Liberalism

When times are bad, the masses turn to the government for help; and, as long as that government provides that help, it will survive and continue to grow.

This is what's happening in America today.  It doesn't matter if 23 million people are either unemployed or underemployed, the general masses are being satisfied by expanding government programs under Obama's reign; such as increases in medicaid, welfare, food stamps, and with new social programs like ObamaCare.  But, what's interesting is that our current expansion of liberalism in this country is a direct result of it's detrimental effects on our economy.  As our economy further weakens, the trend will only move towards more government dependency.  This is why the voters rejected Romney's fix for American Capitalism. We are literally seeing the destruction of capitalism and the movement towards socialism; right before our eyes.  Obama is, as promised, fundamentally changing America.  We are becoming the likes of Greece and Spain with a similar fate to theirs;  just years away.

The Crush Of The Middle Class Under Obama

On the stump and in the debates, the President is at the ready to tout his economic achievements.  He talks about turning the economy around, about creating 4.5 million jobs, about having cut taxes on small businesses 18 times,  lowering the unemployment rate from 10.2% in 2010 to today's 7.8,  and, having been there for the middle class.  But, there is one fact that truly belies Mr. Obama's words.  That fact is the number of people who have fallen out of the middle class under his economic policies.

In 2008,  32 million Americans or slightly more than 10% of our population were either classed as being low income or in poverty; as noted by this chart:

In 2009, that number jumped to around 37 million Americans; or, more than 12% of the population.  By the end of 2012, it is expected that nearly 22% or 66 million Americans will find themselves below the middle class.  That's a doubling since Obama was elected.  All this proves is that America has only gotten poorer, as a country, under Obama.  This is why food stamp usage has so dramatically risen in the last 3-1/2 years.  Why the average family income has fallen by $4300 since Bush left office.  And, proof that Obama's job creation hasn't been for any high quality and high paying jobs.  Truly, there are 66 million people, out there, who can't say they are better off than 4 years ago.

--- Interestingly, the above chart was created by a left-wing, progressive website called "Think Progress".  If they thought that this chart would help Obama and the progressive cause, they are sorely mistaken.  If anything, it only proves that Obama's idea of bigger government has done nothing but to make Americans worse off.  Anyway, here's that site and their story on that chart: http://thinkprogress.org/economy/2012/08/20/714241/chart-number-of-americans-near-or-below-poverty-level-to-reach-all-time-high-in-2012/

One Who Lives In The Cuckoo's Nest

Today was quite the day for economic data:

• Just last week, 570,000 workers lost their jobs and those remaining on unemployment comp grew by 92,000.
  
• Retail sales were down an overall 2.1 percent despite back-to-school spending.
  
• It was announced that food stamps are now being used by more than 35 million people
• Also announced was the fact that 1.3 million unemployed will lose their benefits by the end of the year.

Yet, despite all that, Joe Biden had the gall to state that the stimulus bill is doing more than they hoped (Click to See Full Story: "Biden: Stimulus doing more 'than we had hoped'"). He points to the fact that 500,000 to 750,000 jobs have been "saved" or "created" by the stimulus in the last 20 weeks; or about 25,000 jobs a week. Putting aside the fact that this is truly an unprovable and unquantifiable set of numbers, this guy has apparently strayed a little too far into the cuckoo's nest with that nonsensical comment.

He seems to overlook the fact that Americans have been losing their jobs, on a weekly basis, at a clip that is greater than all the jobs he seems to think were being saved or created by the stimulus plan. To say that the stimulus is more "than we hoped" is just as dopey. We are well past the 8% unemployment rate that Obama promised would be the unemployment ceiling when the stimulus bill was being rammed through Congress. Many economists now feel like we are beginning another downward fall in what could easily be a double-dip or "W-type" recession.

I don't know if Joe is off his meds or if he just woke up from some kind of "midsummer's night dream"; but, he must think that Americans are totally unaware of the real facts about the state of this economy. Maybe he was somewhat confused. Maybe he was referring to the 10-year budget deficit as being "more than we had hoped" which is now project to be $9 trillion after this President's economic team had originally said -- just 5 months ago -- that it would "only" be $7.4 trillion. Is that it, Joe!