MCDANIEL: The Failure of ObamanomicsPosted by Sen. Chris McDaniel (R-MS 42) on January 8, 2015
The nation just recently received the news that the economy grew at its fastest rate since 2003, a brisk 5 percent. The same day, the Dow moved past 18,000, a new record. All indications, at least from those seeking political gain, are that the economy is soaring.
And that has been the consistent Obama theme, although the middle class and poor have seen little evidence of a prospering economy.
At a rally in Kansas City back in July, Obama touted his recovery: “America has recovered faster and come farther than just about any other advanced country on Earth. For the first time in more than a decade, if you ask business leaders around the world what’s the number-one place to invest, they don’t say China anymore. They say the United States of America. And our lead is growing. So . there are a lot of good reasons to be optimistic about America. Things are getting better..”
But despite the best efforts of the president and his followers to sugarcoat the state of the economy with their own unique set of facts and figures, the underlying reality is far different.
A good quarter of growth does not an economic recovery make. We could very well consider this false growth when we factor in government spending. Overall federal spending increased nearly 10 percent in the third quarter, with military spending rising 16 percent, which can account for much of the increase.
We also have major concerns with China. It was recently reported that China has now surpassed America as the number one economy in the world, out-producing the United States, a placement we have not seen since Ulysses S. Grant was President in the 1870s. China owns more than $1.3 trillion in US Treasury bonds and has indicated a willingness to dump them.
China is also strengthening its economic ties with Russia and is promising to help get the world off the dollar. Losing the dollar as the world’s reserve currency would have devastating consequences for the United States.
President Obama seemingly ignores such concerns.
Rather than liberating capital for the producers that actually hold capital, thereby allowing it to be invested in the economy, he believes that vast public spending will encourage growth and, somehow, correct the problem of income inequality, which he has droned on about for years.
Despite his best efforts, Obamanomics has been a failure for most Americans. According to a recent study by the Russel Sage Foundation, middle class wealth in 2013 was 20 percent less than what it had been in 1984, three decades ago, with nearly a third of that drop coming since Obama took office.
Even Alan Greenspan, Former Federal Reserve Chairman, paints a gloomy picture. “The United States is doing better than anybody else, but we’re still not doing all that well,” Greenspan said last week. “We still have a very sluggish economy.” He then indicated the economy will not recover until American companies – that is, producers – invest more capital in productive assets.
President Obama vowed to enrich those in the middle class, but his policies have failed them. And now they are struggling to find steady employment. As of the fall of 2014, there are more than 92 million Americans who are not in the labor force, an increase of more than 11.9 million since Obama took office. Not to mention the million added to the welfare rolls.
And yet, remarkably, the vast numbers of immigrants surging across our borders seem to be having no trouble finding jobs. Immigrant workers now account for all employment growth since 2007.
Ronald Reagan, as well as John F. Kennedy, took a different economic approach, a plan the Left derisively calls “trickle down” economics. The result for President Reagan was years of steady economic growth, not just one quarter; the creation of twenty million high-paying jobs; an increase in manufacturing output; and a rise in median income by $4,000. Indeed, GDP under Reagan grew from $2.8 trillion in 1981 to nearly $5.5 trillion in 1989, almost double.
Under Reagan, America grew stronger and more vibrant; under Obama we are in steady decline with no end in sight.
History has provided us with examples of what policies work to get the economy moving and create jobs. But we need strong leadership willing to turn those examples into new action. The last thing we need is more disinformation and propaganda from this administration trying to convince us that all is well and that government manipulation is working.
Senator Chris McDaniel is an attorney, conservative commentator and was a Republican candidate for U.S. Senate in 2014. He has represented the 42nd District, which encompasses parts of South Mississippi, since 2008. He lives with his family in Ellisville, Mississippi.
Sen. Chris McDaniel (R-MS 42)
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