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Wednesday, June 08, 2011

Obama Administrations Incompetence At A Glance

Economic Policies for the 21st Century provides another graph of what the Obama administration claimed the $787 billion plus stimulus package would do to prevent unemployment from reaching 8 percent in order to get public support for the passage. (It is now at 9.1 percent)

Three different graphs below will show, in a glance, how Obama's policies not only failed, but led to a decrease of jobs, compared miserably to Reagan's policies when he was handed a horrible economy and tripled our deficit.

Click image to enlarge

(H/T Gateway Pundit for deficit graph)

In the first graph above: The dark blue line on the bottom is what they claimed would be unemployment with the stimulus package that Obama and Democrats who controlled the House and Senate passed.

The light blue line is what they claimed unemployment would be without passage of the stimulus package.

The red line is what actually happened after Barack Obama signed the stimulus bill.

E21 explains:

In May 2011, using the latest figures available from the BLS, the unemployment rate reached 9.1%. In contrast, the Romer and Bernstein projections estimated that the unemployment rate would be around 8.1% for this month without a recovery plan, or 6.8% with a stimulus plan (which was ultimately passed). The actual unemployment rate has been consistently below Romer and Bernstein’s worse case scenario for the economy – and by a considerable margin. They projected that the unemployment rate would never climb above 9%. As time has passed, it turns out that only two months out of the last two years have seen an unemployment rate lower than 9%.

And the unemployment trajectory appears to be getting worse, not better. The last two months have seen unemployment grow; again, against projections that unemployment would decline every single month after August 2009 with a stimulus in place.

The second graph above from Liberty Works shows the comparison between Obama's policies and Reagan's and which policies produced results and which has failed miserably.

Like President Reagan, President Obama inherited an economy in crisis. But Obama came into office vowing to implement policy ideas that were exactly opposite the ideas that inspired the successful Reagan Presidency.

* Reagan cut income tax rates. Obama spent his first two years promising to increase tax rates on “the rich,” mostly small business owners and investors. In December he signed legislation that schedules his tax increase to take effect two months after the 2012 Presidential election

* Reagan cut “discretionary” spending. Obama dramatically increased it.

* Reagan reduced regulation and government intervention in the private sector.

* Obama has implemented waves of new regulation and under his leadership Congress passed legislation that will require new regulations of health insurance and virtually every detail of banking and finance – even ATM cards.

The result of ObamaNomics has been a slow, halting economic recovery compared to the extended economic boom that followed the recession of the 1980s.

The third graph shown above shows what Obama's failed and dangerous policies have done to America's deficit problem, he tripled it.

The Obama presidency has failed from one end of the spectrum to the other and instead of changing course and reducing spending, creating jobs, reducing regulations so businesses can grow and employ more people, and following Reagan's example on the economy, Obama keeps trudging along, lying, misleading and fighting against any policies that will help dig us out of the Obama hole we are in.

The only thing the American voters can do now is ask themselves, did Obama make it better or make it worse and vote accordingly in 2012.

[Update] Must-read: The Economy Is Worse Than You Think