"In January 2009, the month President Obama entered the Oval Office and shortly before he signed his stimulus spending bill, median household income was $54,983. By June 2012, it had tumbled to $50,964, adjusted for inflation. (See the chart nearby.) That's $4,019 in lost real income, a little less than a month's income every year.
Unfair, you say, because Mr. Obama inherited a recession? Well, even if you start the analysis when the recession ended in June 2009, the numbers are dismal. Three years after the economy hit its trough, median household income is down $2,544, or nearly 5%.
Add the authors: "The overall decline since June 2009 was larger than the 2.6 percent decline that occurred" during the recession from December 2007 to June 2009. For household income, in other words, the Obama recovery has been worse than the Bush recession. "
So what does explain falling real incomes? Slow growth, yes, but another culprit has been rising prices—especially for food, gasoline, medical procedures and college tuition—that have eroded worker purchasing power. The Federal Reserve claims this is no problem because "core inflation" has been relatively contained. But core inflation excludes food and energy prices, which are two of the biggest components of consumer budgets.
Core reason for Obama's utter failure? Global Warming religion as cover for corruption around 'alternative' energy of which corn ethanol is the most destructive. Given the high cost of tranportation there is no reason not to allow natural gas export as our economy will maintain a wide cost advantage.
Why Obama is an utter failure is simple to understand. This is why just getting him out of the way could unleash a normal recovery. Higher natural gas and coal prices too.
Ah but Progressive agenda has nothing to do with investments. Nothing they tell us all and attempt to destroy any one who disagrees. Not American behavior or I should say not the behavior of American Patriots as defined by our Founders.
Moving some KFT into MCD. MOre NSC is very interesting.
The economic mess that became evident in late 2007 thru 2009 was decades in the making. A good book on this is "All the Devils Are Here" -- which describes the financial, political, and societal actions and policies which conspired to create the perfect storm for an economic calamity. To think that one president or Congress can quickly bail us out of this mess and get us back to "the way things were" is ludicrous.
To me, Bush's late term actions and Obama's actions at the beginning of his administration helped stem the bleeding enough to at least stabilize the patient so that the patient could essentially heal himself. Median income in 2008 and early 2009 was probably still artificially propped up by the unsustainable economic illusion that had been created by everyone constantly selling each other their houses for years. Regardless, median income in 2010 was roughly $50K according to the Census Bureau, and the fact that it didn't fall further seems to be a testament to good policy-making and/or the overall resilience of our economy -- take your pick. But we really need to get past this idea that a president or congress can swiftly turn this huge barge of our economy. He/they can certainly chart a course for the long term well-being of our economy, our healthcare system, our educational system, and our status in world affairs; and that's where our discussion should be.
It is very silly to claim the decline in American incomes is related to housing. We have record low labor participation which means record real unemployment. College kids are sitting at home or pitching coffee. It is cute that Obama speaks of education for the new century jobs when America has never seen such waste of human talent and our education. Record unemployment and under employment is predictable result of Obama’s collectivist agenda.
Just look at Spain and the rest of Europe. This is our future is Obama’s Progressive delusions are not stopped very soon. I live in California and believe me Progressives never stop their delusions so will not stop until bankruptcy.
Then you got it completely wrong on incomes. The greatest flaw in the Bush economic record was that middle class incomes did not grow despite full employment.
Bush allowed hostile mercantilist trade from the Chinese national socialists. That depressed our wages and provided excess savings or liquidity. He borrowed and spent to much.
But overruling both Bush and the GSE government regulators to continue directing Fannie, Freddie and private banks to make subprime mortgages was Barmy Franks and the Progressive/Socialist caucus.
Time to solve problems like adults rather than pretend Obama policies are a solution when it is compounding the problems he was hired to correct. Time is short for America to grow up and use our common sense.
One flaw in your analysis. The 2008//2009 recession was another Bush recession, not an Obama recession.
Also, the lack of Nat Gas exporting has nothing to do with Obama, it has to do with lack of facilities to export because nobody wants them in their backyard. (NIMBY) And thats a local issue out of the control of any national gov't.
And if you expect coal prices to rebound, you're smoking something. With cheap nat gas, utilities are switching from coal. Or maybe you believe the fantacy of "clean coal" ? Ask the Chinese on respirators about "clean coal". They had to shut down their coal utilitiy plants during the Olympics just so the athletes could breath.
75% of the loss in American living standards occured in the Obama 'recovery'. Time to American up and Progressives to accept responsibility for the results of their policies.
Chinese coal plants are not built to our standards. But they are taking the lead in poly-generation technology which reduces polution but is also far more efficient. If you believe that bogus GW religion this is your only hope as the Chinese already great exceed our co2 production.
If you believe the American economy can created jobs based on artifically expensive electricity you need to stop your pot prescription and think.
As for the export facilities all that is required if the corrupt Obama administration providing approval. If we will not the Looneys will happily expand their export terminals.
raising minimum wages would help ( just take it from CEO's off-shored accounts ) ( where it is adding nothing to real-America's-GDP ...
as the working poor put 100% of their earnings back into circulation each and every week ... the economic boost from the velocity on money in the lower income quintiles is under appreciated
fighting recession is all about getting more V on the D (velocity on dollar)
Incomes for real Americans (71%) have been stuck in neutral, that is ...
for the past 30 years
Ah another golem of the Progressive forces.
Depends when you begin the series. Clinton did achieve growing real incomes like Reagan via full employment.
However he fanned the NAZ5000 and dot.bomb bubbles for his selfish political power and caused a nasty recession.
Bush did get us out of the Clinton recession9/11 attacks with the standard combination of tax cuts and pro-growth regulation. However, he did not have rising middle and working class incomes primarily due to allowing far to much hostile trade out of Asia and Germany.
YOu need to think! Trying it Obama's Progressive way made everything worse. Disfunctionally and dangeriously worse from the bottom up.
Policy solutions not attacking your Progressive masters named enemies.
If you want real American incomes to expand from the bottom up then it is necessary to reduce the cost of food and energy. PERIOD. Econ 101.