The Democrats want Americans to believe that the poor economic growth under the Obama administration is “the new normal.” They want us to believe that “no one could have done otherwise,” and probably wouldn’t have done as well. This exonerates their chosen leader from the responsibility of his actions for the condition of the economy.
I seriously doubt, for example, that you will hear Hillary touting another “stimulus” package, or even hear the word, “stimulus.” You probably also will not hear a promise to “put a million electric cars on the road.” There will be no talk of financing the Solyndras of the world. You will hear talk of “infrastructure,” but rest assured the words “shovel-ready” will not leave her lips!
The Democrat Party also needed to “dumb-down” the word “recovery.” It is the worst “recovery” since the Great Depression – and, if you hadn’t realized, we are in the 8th year of this “recovery.” Even this abysmal record required 7 1/2 years of zero interest rates. We have had our first decade without one year of 3% GDP growth – the so-called “lost decade” – and we are moving into the second “lost decade.”
[Source: Is anemic growth the new normal? By George F. Will]
Gregory Mankiw, Harvard economist documents that under the Obama administration, the growth rate of the real gross domestic product per person averaged 0.44 percent. What does that mean for Americans? If we can achieve the historical norm of 2 percent American workers will see their incomes double every 35 years. If we continue with the Obama “recovery” at 0.44 percent, their incomes will double in 160 years.
Lawrence Summers served as Obama’s Director of the National Economic Council. We are now in the second longest business cycle without a recession. With the recovery aging, Summers predicts that “the annual probability of recession is 25 to 30 percent.” When it arrives in a near-zero interest rate environment, the Fed is out of ammunition. The Fed usually reduces interest rates at least four percentage points in a recession. Oops, that can’t happen when the next recession hits. There will be no cushion to the shock.
The Obama administration points to its one and only “bright spot” – the low unemployment rate. However, the workforce participation rate has plunged. If labor participation were as high as when Barack Obama became president, the unemployment rate would be over 9 percent. That’s some “bright spot!”
Because of the zero-interest-rate policy, only those Americans with a house or a stock portfolio were able to enhance their net worth during the Obama administration. Is it any wonder that the average American is turning to “non-establishment” candidates.
The most disturbing statistic is that for the past five years productivity has grown only half a percent a year. The Obama-philes will never admit that the strangling business taxes and regulations that our current president loves have anything to do with that!
My friends, Hillary is a prescription for “four-more-years” of this nonsense. DON’T DO IT!