The Economics of Failure

The Economics of failure

By election day, Our President will have added $7 trillion to the debt. that is the current debt ceiling. That spending was allowed because of certain promises made by the president. He promised that if his stimulus was passed it would keep unemployment from topping 8%. It sailed right past that mark topping out at 10.3%, and settling around 9.2% He promised that Obamacare would bend the cost curve down. the CBO is now forecasting it to cost $3.2 Trillion over 10 years. And THAT is just the taxpayers cost.

What have we ACTUALLY got for this debt? Unemployment has gone from 7.3% to 10.3% currently settling at 9.2%, BUT this figure is misleading because the labor participation rate has declined by 4.1%, If the labor participation rate was the same as when Stimulus was passed the unemployment rate would now be 12.4% We have deficits at 12% of GDP. FLAT GDP growth. Debt at 102% of GDP.

President Obama has done more to economically destroy this country than any president since FDR. And in an effort to get re- elected this president has decided to abandon his hope and change rhetoric for divide and conquer. He abdicated leadership early on, but now, with few results and fresh out of ideas, he is being weighed down by his own spending and debt. Following the path of Europe is not an option for Us as there is No America to bail us out!

Crony Capitalism at it's best

In 2008, Unions ponied up $283 million dollars of their workers dues for President Obama to get elected, THis bought ALOT of access. In his first year in office, SEIU($85 million in campaign funds) president, Andy Stern was a White House visitor 47 times. More than anyone else. 46 times more than the Director of Central Intelligence. 45 times more than the Chairman of the Joint Chiefs. Obama passed his Stimulus package which included $467 billion to states to shore up their underwater budgets. A gift to public sector union employees, mainly teachers. This one bill put $123 million into the pockets of those unions in dues.

Then came the Teacher bailout in 8/2010. A $26 billion measure that would "save" 400,000 teachers jobs. This added another $21 million to the unions deep pockets. Now the President is proposing a $447 billion "jobs" bill that repeats the same failed actions of the previous bailouts. Another proposed $83 billion to public sector union employees, which, if passed will generate another 474 million into the unions pockets in dues.

Add to this the $2.4 billion in solar loans to companies that donated to Obama's campaign through a bundler that just happened to be an advisor to the DOE on the "green jobs" initiative.

These actions are all defended by the very same left, that decried Halliburton getting no bid service to troops contracts in Iraq, while refusing to acknowledge that there were only two companies in the world who did that type of work, and the other was French.

Obama's union donors put up over $200 million for him to get the office, and they have gotten in return, $247 million in cash, PLUS 47% ownership of GM, and 40% ownership of Chrysler! NOW THAT IS A PROFIT!

The President is lying!

After listening to leftist politicians decry "Republican Spending cuts", I did a quick google search of the terms "federal spending cuts hurt" returning 2.6 million articles.

While this appears to be the campaign meme, the fact is it is untrue. There have been NO federal spending cuts! In fact spending is increasing.

A quick trip to the Treasury website confirms that federal spending for the first 9 months of 2011 are up 5% over the same period last year. ANd so is the debt!

In fact, the federal debt has increased by $870Billion this year alone! The deficit for this year alone is $1.645 TRILLION!

And the Federal government took in $2.173 trillion in total revenue, $1.467trillion coming form the income taxes of the top 10% of income earners, BTW, the Government at the same time spent $2.21 trillion on social security, medicare/aid, and welfare.

So how can our politicians, our president campaign on Republican spending cuts hurting the poor, the kiddies, the seniors, while there are no spending cuts, and while the presidents own Obamacare, combined with Stimulus jr. bill take $700 billion away from Medicare?

Very simple, He and they are lying to you.

Presidential Advice we should follow

In 2008, Obama said: “If I don’t have this(economy turned around) in 3 years, then this is going to be a one term proposition” and; There is too much of a sense of hopelessness in this country, we can not afford to lose a generation to poverty.

Three years later the poverty rate, which was 12.9% when obama took office, is now 14.7%.

In 2008, Obama said; “When we are losing jobs month after month our economy is not strong, We need change” When Obama took office the U3 unemployment rate was 7.3%, the U6 was 12.8%. Today the U3 unemployment rate is 9.2%, the U6 is 17.9%.

In 2009, Obama said; “I want to get going on things that will create jobs right now” Between that speech and now the Country has LOST 2,400,000 jobs according to the BLS. Add to that the fact that during the same period the labor participation rate has dropped by 4.1%, meaning that if participation rate were the same as it was when Obama took office then the U3 rate would be 11.8%, and the U6 would be 20.3%.

In 2008, Obama said; “Since 2001 when GWB took office average American families have seen their household income drop by $2,000.00.” According to the IRs, the average American family has seen their income drop by $4,154 in Obama’s first 30 months in office.

In 2009, Obama said; “My health care plan will bend the cost curve down for the average American family. They will see their health care costs decrease” The average family health care plan in March 2009 was $12,380, The average family health care plan in 2011 is $15,677.

In January 2009, Obama said; “My economic recovery plan will create 3.5 million new jobs”(later changed to created or saved). The total number of people employed in Jan.2009 was 142,201,000, in July 2011, 139,206,000.

In February 2009, Obama said; “My economic plan will not allow inflation to rise above 2%. Inflation rate Feb. 2009 was 0.03%, the Inflation rate in July 2011, is 3.77%.

In Dec. 2008, Obama said; “imagine a president like me, raised by a single mom who had to take food stamps once in a while”. Food stamp usage Dec. 2008, 31.1 million recipients. Food stamp recipients in August 2011 45.4 million recipients.

Mar. 16, 2006, Obama said; “ Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren” AND “America has a debt problem and a failure of leadership, that is why I am voting AGAINST raising the debt ceiling”. The debt at that time was $8,271,005,203,336.67, on Oct. 4, 2011 it is $14,856,859,498,405.73.

By any standard you choose, indeed by his own standards, Obama’s policies have failed miserably. It is time to follow the sage advice of one Barack Hussein Obama who famously said on February 2, 2009 in a Today show interview with Matt Lauer; “If will be held accountable, if in three years I don’t have this done, it will be a one term proposition”

Good Bye Barack.