Obama Administration Policies Blamed for Slow Economic “Recovery”
There are fewer people employed today in theUnited Statesthan when President Obama took office! In a usual post-World War II recovery situation, at this point the economy was growing at an average of about 5 percent. By comparison, the Obama economic recovery has achieved just over 2 percent.
A study conducted last year by the Federal Reserve, viewed the behavioral patterns of recoveries from recessions during the past forty years, in 59 advanced and emerging market economies. It revealed the recoveries had the tendency to be quicker following severe recessions, as we have just experienced. This was supported by the fact that deeper the economic down-turn, greater was the impetuous of the economic recovery, with the proviso that the government did not make mistakes. An example of this was shown in the recession of 1981-1982, where output declined by 2.7 percent, but saw a rise of 15.9 percent during the following ten quarters.
Various reports show that the Obama administration policies are preventing the creation of more jobs and the Obama-care policy is causing lay-offs in the medical device industries. At the same time, it is stopping the investment needed for new jobs created by expansions programs. Another cause of lost jobs is the Dodd-Frank law, supported by President Obama, which has not only eradicated jobs, but has achieved the driving of thousands of jobs overseas. A further cause for concern regarding an economic recovery is that the recent EPA rules will also contribute to the loss of reportedly, hundreds of thousands of jobs.
Regarding the depression affect on Wall Street during 2008-2009, the same reported Federal study, discovered that bank or other related financial crises, “do not affect the strength” of subsequent economic recovery. A factor that could be attributed to a part of President Obama’s under-performance, in comparison to the Reagan recovery, is the policy differences. The President has increased government spending significantly and contrary to his campaign promises of reducing “net spending”.
A further source of expenditure created under the Obama administration, is one that requires States to increase their spending. This will incur large and unfunded mandates, which could entail increased State budget deficits or significant increases in State taxes. The termed “green jobs” funding stimulus package in the sum of $800 million, resulted in 79 percent going to foreign firms, thereby replacing jobs for Americans with foreign green jobs.
Many small businesses depend on their larger customers. Reports show that the larger businesses are holding their cash assets, due to concerns regarding perceived hostility towards businesses by the Obama administration. Their attitude is that similar to being under an attack and waiting for the next strike and how much financially, it will cost them.