The GOP said Obamanomics would kill the economy. It didn t. Now what - The Week
The GOPs messaging is built around blaming President Obama's progressive policies — the Affordable Care Act (aka ObamaCare), the Dodd-Frank overhaul of the financial regulatory system, energy regulation, tax hikes on the rich — for the weak economic recovery. Some Republicans have gone even further in the past six years, predicting just-around-the-corner catastrophe — soaring interest rates, rocketing prices, a collapsing dollar — due to "Obamanomics."
Such apocalyptic forecasts look silly in retrospect. The dollar is at a nine-year high, interest rates remain low, and inflation is still well below the Federal Reserve's 2 percent target. The only thing that has collapsed is the annual
U.S budget deficit, from nearly 10 percent of GDP in 2009, to under 3 percent last year. One reason: Non-defense discretionary spending is headed toward its lowest levels in modern history
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The health and stability of the economy is on very shaky ground. And, it has nothing to do with one party or the other. No matter how we dissect and examine the pieces, it always comes up "Washington Politics". It would be misleading and inaccurate to blame either the Republicans or the Democrats, since most of our economic problems have roots that go back decades, spanning several administrations, both Republican and Democrat. In addition, it's presently government debt that's keeping our economy afloat. Even though budget deficits are showing promise, we are still borrowing money each and every day, and the national debt continues to soar into astronomical figures. We still have serious issues with poverty, unemployment, homelessness, troubled pension funds, infrastructure, illegal immigration, off-shore out-sourcing of jobs, importing labor, housing and construction, affordable health care, taxes, lost home equity, major cities in deep financial trouble, excessive defense spending, cuts in the food stamp program, cuts in some services for our Vets, and the overall cost of living as a percentage of real wages.
As our population grows, the number of living wage jobs decrease. Businesses are now able to produce more with less employees. We now have technology, innovation, and automation intergraded into the work place, which enables businesses to replace workers with machines. And, we're still importing most of what we use and consume. We've become consumers and not producers. So, the jobs market doesn't look good for the foreseeable future, especially since we're facing an influx of immigrants in the very near future.
At present, we do have a bright spot working for us. The price of gasoline at the pump is allowing us to put an extra $100.00 or so in our pockets each month. This will help tremendously. Also, several states have agreed to raise the minimum wage, which will also help many workers. Lets hope employers don't cut employees' hours as a result. Employers are already offering less company paid benefits, which added extra cost to employees.
On the negative side of the equation, employers are hiring more part-time workers and temporary workers. And we still have many college grads underemployed, and some are still living with parents in order to survive. The cost of proper health care is still being debated, and many are reporting actual increases in cost, decreases in coverage, and much higher deductibles. Even though we're being fed tidbits of good economic news, the big picture doesn't look so bright or promising. A few bright spots here and there is not representative of the overall health and stability of the economy, especially considering the long range outlook. Personally, I'd say caution when getting too excited over what appears to be a positive economic turn-around.
