The Obama White House and the establishment media have launched a new public relations campaign to try to convince the American electorate that through more government economic “stimulus” and other liberal witchdoctoring, President Obama can fix what ails the U.S. economy.
The small business owners and entrepreneurs who are the backbone of the Tea Party movement understand better than anyone in the Obama White House how a job is created and sustained because they do it -- or try to do it -- every day. They view the idea of Obama making another attempt to “fix the economy” as either the most frightening thing they have ever heard or completely irrational nonsense – or both.
But is the Tea Partiers’ opposition to the liberal Democrats’ economic policies merely politics? Let’s look at the facts.
Between the Pelosi Congress and the Obama Administration the national debt has grown by some $4.5 trillion. When Nancy Pelosi became Speaker of the House unemployment was 4.6%, by the time Barack Obama was inaugurated it had risen to 7.9% and has remained above 8% the entire time Obama has been in office.
The initial decline in employment was of course attributable to the crash of 2008, but much of the sustained nature of the current unemployment disaster is due to Obama’s attempts to guarantee success to crony capitalists, like green energy boondoggle Solyndra, protect unions, and advance a scheme of permanent wealth redistribution through expanded federal entitlement spending on health care.
The conflicts and failures of these policies are on the front pages of newspapers every day: Solyndra gets a half-billion dollars in taxpayer “green jobs” money, goes bankrupt and 1,100 workers are laid-off anyway; Bank of America gets an undeserved taxpayer-funded bailout one year and is, perhaps deservedly, sued the next year, resulting in tens of thousands of layoffs. Aviation manufacturing is a bright spot for U.S. exports, so what does the Obama administration do to protect failing unions? It turns the National Labor Relations Board loose on Boeing to hobble the company’s efforts to stay competitive and keep manufacturing jobs in the United States.
With Obama’s war on business and efforts to manage the economy in favor of capitalist cronies have come a sustained decline in employment and a staggering increase in government debt – and an equally staggering drop in the net worth of America’s families.
According to figures from the Federal Reserve, during the first years of the Great Recession, U.S. household wealth fell by about $16.4 trillion from its peak in spring 2007.
After almost three years of Obamanomics only a little more than half of that lost wealth -- $8.7 trillion -- is back on household balance sheets. That leaves American household wealth $7.7 trillion less than it was before the recession.
Most of the lost household wealth came from declines in the value of real estate, which dropped $6 trillion, or nearly 30% of its value, from the end of 2006 to the end of 2010.
Despite the fact that the Obama administration nationalized the entire debt of Fannie Mae and Freddie Mac, and the federal government now controls over 90% of the home mortgage market, and has $1.3 trillion in mortgage lending support outstanding, home values have continued to fall in many markets in 2011.
The gap between pre-Obamanomics household wealth and post-Obamanomics household wealth is in stark contrast to the nation's gross national product, the broadest measure of economic activity, which has recovered all of the lost output of the recession.
While Obamanomics has been good for bailed-out financial institutions and well-connected corporations, such as crony capitalist powerhouse General Electric, who’s CEO Jeffery Immelt sat in the Obama box during his recent jobs speech to Congress, it has been a disaster for American families.
Given the results achieved since Obama was sworn-in as President – an election he, to a large extent, won by claiming that if elected he would jumpstart the economy – no rational person could claim that the trillions of dollars spent in economic stimulus, bailouts and all the other federal government economic intervention have done anything but destroy jobs and economic growth in America.
But what would the Tea Party do differently if Tea Partiers controlled Washington?
While it is tempting to start with “reverse everything Obama and the Pelosi Congress did since 2007,” in parts two and three of this series we will propose a list of serious steps that a Tea Party driven Washington would take to encourage economic growth.