Key truths about the Obama economy


#1

Economic growth: The Obama economy has grown about 2% a year. That’s decent, but the pre-recession average is over 3%. OK story.

Stocks: Obama has delivered a bull market for stocks. The Dow and S&P 500 are at record highs and the Nasdaq (the tech heavy index) is above its Dot-com era peak. Great story.

**Worker pay: **The typical American family brings home just shy of $54,000 a year, almost exactly the same as 20 years ago (once you adjust for inflation). Wage growth has been very low under Obama. It’s the “missing piece” of the recovery. Not good.

**Housing: **Home prices have finally recovered to their pre-crash (2005) highs. The median price is now $231,000. Good story, finally.

Student debt: 70% of students graduate college with debt. The average student leaves with nearly $29,000 in debt (versus about $20,000 a decade ago). Worrisome.

Government debt: Government debt has nearly doubled under Obama from $10 trillion to $19 trillion. Concerning.

Gas prices: American oil production is at a 43-year high. Gas prices are at the very cheap rate of $2.15 a gallon. Great story.

Interesting article, read the rest:
money.cnn.com/2016/07/28/news/economy/obama-clinton-economy/index.html?sr=twCNN072816obama-clinton-economy0554PMStoryLink&linkId=27043055


#2

I think the question that is missing is what is the alternative? If we had a republican president over the past 7 years, would things be better? I don’t think anyone can really say one way or another how things would be better or worse. That is not to say that the Obama administration has pursued good economic policy, but that presidents often have little effect on the economy one way or another. What I find most interesting is that for all Obama’s criticizing of the rich, they are the group that has done very well over the past 7 years. If I were rich, I would put up with a president making negative comments about me if I was getting richer.


#3

Oh goody, tell me about the labor participation rate?
Tell me about the record number of food stamp users?
Tell me about the H1-B visa use?
I could go on but got run.


#4

Since we can only live in the “what is” rather than the “what might have been”, I don’t see how the question is relevant. And, while 100 years ago, the case could certainly have been made that the President’s effect on the economy is very limited, I don’t think that case is as strong when you have the President responsible for spending 25% of the nation’s total economic output every year.


#5

The president unilaterally decides how much the government spends each year? Is that why Reagan ran deficits?


#6

The typical American family brings home just shy of $54,000 a year, almost exactly the same as 20 years ago (once you adjust for inflation). Wage growth has been very low under Obama. It’s the “missing piece” of the recovery. Not good.

If income includes interest received, either directly or indirectly, then yeh, that would impede income growth.

**Housing: **

Home prices have finally recovered to their pre-crash (2005) highs. The median price is now $231,000. Good story, finally.

Higher home prices reflect the increased leverage. Lower interest rates and margins tend to do that. Not necessarily good for the new home buyer.

Government debt:

Government debt has nearly doubled under Obama from $10 trillion to $19 trillion. Concerning.

A lot of this was caused by the FED’s QE purchases, most of which remains unspent by the government. It’s been at 18-19 Trillion for quite some time.

Gas prices:

American oil production is at a 43-year high. Gas prices are at the very cheap rate of $2.15 a gallon. Great story.

Supergood in the short run for the consumer, not so much for the employees of oil companies and oil companies themselves.
[/quote]


#7

For a more reasoned look at who’s responsible for the deficit, read

here

While you’re reading, keep in mind that its Congress who appropriates money to fund government spending.

Jim


#8

Any mention of companies offshoring? Nabisco moved Oreos to Mexico. Carrier also left for Mexico.


#9

Well, even though the economy has definitely improved over the course of the Obama administration, the key issue, as pointed out in the article is this:

“Worker pay: The typical American family brings home just shy of $54,000 a year, almost exactly the same as 20 years ago (once you adjust for inflation). Wage growth has been very low under Obama. It’s the “missing piece” of the recovery. Not good.”

If American families are making the same amount of money they did 20 years ago, but prices have gone up as they have, then this is why the economy is still struggling so greatly and why we need someone who will bring back our companies. These companies will, in turn, provide the jobs that we so desperately need and, with more of them in the market, will grant competitive wages to their employees.

May God bless you all! :slight_smile:


#10

Obama found a brilliant way to lower the unemployment rate-drive people out of the workplace.


#11

Automation surely has a lot to do with the permanent and continuing loss of jobs, and not simply companies moving their operations overseas.


#12

I do sometimes feel that despite the vast gulf between the two parties rhetorically speaking, once in power they govern very much alike. Perhaps that is what is driving the Trump rebellion.


#13

Historically, I think they came close to operating similarly. But I think that has changed over time. We actually had a nearly balanced budget when Gingrich had the congress in the palm of his hand, and we were headed in that direction under Bush, despite the wars, until the recession.

But I think there has been a change. I realize this is anecdotal, but it’s one I see and one I hear about quite a lot. Small business is simply not investing in plant and equipment, and it’s somewhat due to banking regulatory changes, but more a result of fear of the potential actions of an over-regulatory government. Obamacare alone has reduced profitability for small business quite a lot and greatly discourages hiring additional people. There’s a lot of fear of the unknowable and the erratic.

If Clinton is elected, it could get worse. She owes a lot to big companies who will want to cash in. One of the ways they can do it is through government actions that suppress small company competition. If, as seems obvious, Hillary Clinton is “for sale”, no business can really feel secure that it will not be “outbid” by a competitor.

I think presidential actions can’t do much to really improve an economy, but they can do a lot to harm it.


#14

Bush used the same strategy.


#15

Undoubtedly it has an effect. But when has that not been true? My wife’s great-grandfather was a harness maker and blacksmith. That went away, of course. But other things took its place.

Perhaps the strongest man I ever knew operated one of those tire recap shops when I was a kid. That went away for a number of reasons, one of them being the relatively lower cost of new tires, most of which now come from abroad. Tire manufactories themselves stand empty in the U.S. Whole cities like Dayton, Oh, collapsed because of it. They simply couldn’t compete with foreign-made tires, automation or no automation, where labor cost less.

I realize people say automation is responsible for the chronic underemployment. That’s probably true to a degree and in places, but I have my doubts that it’s a significant factor.


#16

Less than “OK.” Obama’s economic growth has been terrible by comparison with other Presidents, and it is directly attributable to his Leftist policies.

Stocks: Obama has delivered a bull market for stocks. The Dow and S&P 500 are at record highs and the Nasdaq (the tech heavy index) is above its Dot-com era peak. Great story.

Stock prices often go up or down regardless of overall economic health.

**Worker pay: **The typical American family brings home just shy of $54,000 a year, almost exactly the same as 20 years ago (once you adjust for inflation). Wage growth has been very low under Obama. It’s the “missing piece” of the recovery. Not good.

What Obama recovery?

**Housing: **Home prices have finally recovered to their pre-crash (2005) highs. The median price is now $231,000. Good story, finally.

Price inflation may be good for some, not for people looking for homes.

Student debt: 70% of students graduate college with debt. The average student leaves with nearly $29,000 in debt (versus about $20,000 a decade ago). Worrisome.

The huge increase in college tuition expense is directly attributable to the government.

Government debt: Government debt has nearly doubled under Obama from $10 trillion to $19 trillion. Concerning.

We are headed for a disaster.

Gas prices: American oil production is at a 43-year high. Gas prices are at the very cheap rate of $2.15 a gallon. Great story.

Oil production has increased in spite of Obama’s War on Fossil Fuels, not because of it.


#17

It just seems that recently new technologies have made it possible to eliminate humans from jobs such as cashier, toll-booth operator, etc. and I’m sure on factory lines as well. I don’t remember when elevator operators were a going concern, but I do remember telephone operators (do they still exist?).


#18

The Executive Branch, headed by the President, does spend roughly 25% of GDP every year, and through it’s regulatory agencies, controls the spending of significantly more. Those are just facts.


#19

The budget for the federal government is controlled solely by the president? Source?


#20

Well you can bet the companies profits have increased over this time, thats the problem, the wealth isnt being shared, if people are bringing home the same pay as 20 yrs ago, yet companies profit margins are going thru the roof year after year…something wrong with that picture.


DISCLAIMER: The views and opinions expressed in these forums do not necessarily reflect those of Catholic Answers. For official apologetics resources please visit www.catholic.com.