Should President Obama be celebrating the salvation of our economy yet?
Should he be using that as proof that Big Government works?
Are we really Saved?
Well not really. I will admit things have gotten somewhat better since the total collapse, but the recovery has been really slow. So let’s not even try to compare him to what Ronald Reagan accomplished like many are trying to do. During this point of Reagan’s Presidency we were much further ahead of where Obama has gotten us but I won’t get into comparing them now since that is not the point of this post. The real point is the economy has not really recovered yet and people are still hurting. For now we will ignore the increased burden caused by the Affordable Care Act (ie Obamacare) and increased tax burdens. By looking at a few basic numbers, we can see…
3 Reasons why Obama shouldn’t be celebrating the economy just yet!
As I think we have seen, Obama likes to celebrate and spike the ball when things go well, even when he has nothing to do with them. Let’s look at a few reasons why his “Verdict” isn’t so clear quite yet.
1. Income hasn’t Recovered
Simply put, the median family income is still well below where it was when he entered office, let alone where it should be. The median income peaked in 2007 at $57,006 and was $56,290 in 2008 when he entered office, according to Department of Numbers. According to CNN, the the median income bottomed at $51,913 in 2011 and started to rise to where last year it reached $53,819, which is still significantly below the 2007 income. Also the Republicans took over the House of Representatives in 2011. Maybe that is just a coincidence…
2. Labor Participation is still way down
Obama touted the new unemployment rate of 5.6% (back to 5.7% currently) according to the Bureau of Labor Statistics. The problem is this number can be very misleading. Right now Labor participation is still way down at only 62.9%! This still way down from January 2008 when it was 66.2%. What this shows is that many Americans have given up and are no longer trying to work! Because of this, they don’t count against the unemployment statistics. The Labor Participation Rate would need to get back up to the 65-66% range before the Unemployment numbers can be considered a reliable indicator of actual employment.
3. Part time employment is still up and full time is still down.
And yet another reason why the unemployment numbers are misleading. Full time employment is still way down and part time employment is way up compared to 2008. When Obama entered office, the full time employment rate was 83.1% with part time at 16.9%. 7 Years later the full time rate is 81.3% and part time is at 18.7%, according to dshort. As we can see, there has been some improvement occurring in this area but we are still nowhere near being back to where we started at before the recession. This is something you would never know just by looking at the unemployment rate.
And that is 3 reasons why Obama is celebrating the recovery of the economy to early.
People are still hurting. This is just another example that Obama has failed to follow through on his promises and that Big Government is not the answer. When you think cost of living is up, income is still down, medical care is increasing before you even need care, and they continually want to raise taxes, how can we say that the economy has recovered? It is time for a change. I know it is novel but why don’t we try Freedom, Liberty, and actually following the Constitution for a change!
Do you have any other examples of why the economy isn’t out of the woods yet?
Please share them and any other comments below. We would love to hear them!