'Hope And Change' Means Punishingly Slow Growth For Obama's Biggest Supporters

WASHINGTON, DC - NOVEMBER 09: U.S. President B...

President Barack Obama. Getty Images 

Steve Moore of the Wall Street Journal explained President Obama’s 2012 reelection in the September 4 edition as follows: “Mr. Obama was reelected with 51% of the vote….He cleaned up with 60% of the youth vote, 67% of single women, 93% of blacks, 71% of Hispanics, and 64% of those without a high school diploma, according to exit polls.” But it is precisely these groups that President Obama’s economic policies have punished the most. The latest data on incomes shows that since the end of the recession in June, 2009 incomes for black heads of households have plunged by 10.9%. Incomes for those under age 25 have plummeted by 9.6%. Incomes for workers with a high school diploma or less have dived by 8%. Single women have suffered an income decline of 7%. Incomes for Hispanic heads of households have declined by 4.5%.

Incomes are expected to decline during a recession. But the whole point of a recovery is that incomes of workers reverse course and begin to rise with renewed economic growth. As in the Reagan recovery starting late in 1982, which reversed a decline in real median incomes of 10% from 1978 to 1982. Real per capita disposable income boomed by 18% from 1982 to 1989, meaning the American standard of living increased by almost 20%, in just 7 years.

But after more than 4 years of the alleged Obama recovery, incomes for blacks, Hispanics, single women, young workers, and less educated, lower income workers have continued to drop sharply. Incomes for the middle class, which Obama has touted as the “North Star” of his economic policies, have also declined continuously throughout Obama’s misnamed ‘recovery.’

Moore explains, “This is a stunning reversal of the progress for these groups during the expansions of the 1980s and 1990s….Census data reveal that from 1981-2008, the biggest income gains were for black women, 81%; followed by white women, 67%; followed by black men, 31%….” For women overall, real median weekly incomes rose 32.1% in Reagan’s first term, compared to 6.6% in Obama’s first term.

Similarly, for unemployment, last month the unemployment rate for blacks was still 13%, more than four years into the supposed Obama recovery! The Hispanic unemployment rate was still stuck at 9.3%. Those with less than a high school diploma, still in double digits at 11.3%.Employment of women rose by 4,460,000 in Reagan’s first term, while women suffered a net loss of 354,000 jobs during Obama’s first term. Conversely, the number of women not in the work force rose by 4,458,000 in Obama’s first term, compared to 345,000 in Reagan’s first term.

More than 3 times as many jobs were created for African-American women in Reagan’s first term, compared to Obama’s first term, even though the population was much larger in Obama’s first term. Jobs for African American women rose by 15.1% in Reagan’s first term, compared to 2.6% in Obama’s first term.

One of the first things Senator Obama and his Democrats did when they took over Congress in 2007 was raise the minimum wage. Then they did it again as soon as Obama was elected President, completing a 40% increase. As a result, the teenage unemployment rate was still 24.5% in May of this year, almost 4 years into the recovery. Last month, the black teenage unemployment rate was 38.2%! The available Hispanic teenage unemployment rate – 28.4% (not seasonally adjusted).

Teenage female African Americans employed fell by 19.1% in Obama’s first term, compared to a decline of just 1.5% in Reagan’s first term. The unemployment rate for teenage female African-Americans rose by 5.7 percentage points in Obama’s first term, compared to just 1.1 percentage points in Reagan’s first term.

Moreover, despite Obama’s rhetoric, real incomes for the poor have been declining steadily while he has been President as well. That is why the poverty rate has increased every year that he has been President, from 12% in 2008 to 16.1% today, higher than when the War on Poverty started in the 1960s. That represents an increase in the poverty rate under President Obama of more than one third! The Census Bureau reported more Americans in poverty under President Obama, at 50 million, than ever before in the more than 50 years that Census has been tracking poverty.

Reagan’s recovery, again by sharp contrast, reversed an increase in the poverty rate of one-third that began in 1978 under President Carter, with the poverty rate declining every year of Reagan’s recovery while he was President, falling by one-sixth from its peak.

Indeed, under President Obama, only the incomes of the top 20% have been rising, with the recovering stock market and healthy corporate profits. The incomes of the bottom 80% have been falling consistently under Obama’s perverse, consistently anti-growth economic policies. Consequently, what President Obama has done is reestablish precisely the rich getting richer and the poor getting poorer. We need a neo-Marxist President for that?

READ ENTIRE ARTICLE HERE: http://www.forbes.com/sites/peterferrara/2013/09/13/hope-and-change-means-punishingly-slow-growth-for-obamas-biggest-supporters/

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