Obama’s Policies Caused Greatest U.S. Wealth Decline in Decades

Ben Johnson, The White House Watch

Barack Obama has so humbled American finances and destroyed the average family’s wealth that even the mainstream media can no longer cover up his dismal record. Today’s issue of the New York Times ran a featured story entitled, “Recession Officially Over, U.S. Incomes Kept Falling.” The story highlights a study by two former Census Bureau officials, Gordon W. Green Jr. and John F. Coder, which found Americans have lost more wealth under the Obama administration than in the midst of the recession under George W. Bush. Altogether, the recession and Obama’s policies created the largest reduction in the American standard of living in decades. (Read the report’s major findings here.) Obama’s policies have inflated store prices, debased the dollar’s purchasing power, and led to a glut of unemployed who are not drawing a paycheck. However, government workers suffered the smallest income drop, meaning Obama’s policies encourage government dependence and a further spiral toward economic catastrophe.

According to the article, economists agree the recession, which is defined as two quarters of negative economic growth, began in December 2007 and ended in June 2009. The NYT reports, “The full 9.8 percent drop in income from the start of the recession to this June — the most recent month in the study — appears to be the largest in several decades, according to other Census Bureau data.”

The Times data make clear two-thirds of this wealth loss occurred during the reign of glorious King Obama and is attributable to the intended or foreseeable outcomes of his policies. While the inflation-adjusted median income fell 3.2 percent during the recession, it has plummeted 6.7 percent since June 2009, to $49,909. Two factors, the Times reports, made this slump in buying power possible: prolonged unemployment and inflation.

The article relates the greatest drivers of inflation are “the prices of oil products and many foods.” Yet these were the deliberate aims of Obama’s policies. On the 2008 campaign trail, candidate Obama told the editorial board of the San Francisco Chronicle, “under my plan…electricity rates would necessarily skyrocket,” and as president he has been as good as his word. His Science Czar, John Holdren, has written of the benefits of shinking “GDP per person,” a position shared by the Soros-founded and -funded Institute for New Economic Thinking (INET). The president has unilaterally ended oil drilling in the Gulf of Mexico. He has declared war on the coal industry. He declared the EPA would regulate carbon dioxide as a pollutant, a move that heavily burdened the energy industry, although the agency has thankfully failed to come up with a plan to do so. Food prices have risen as the Obama (and Bush) administrations pushed credits into the development of ethanol and other “green energy” sectors, a cornerstone of Obama’s utopian jobs policy.

This overlooks the fact that even the modest, jobless growth was purchased with multiple rounds of “quantitative easing,” which is by definition inflationary.

The results have been ruinous. The Consumer Price Index has….

Read more.

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