Recent news that the US economy grew a paltry 2% never takes into account several facts, namely that GDP is most often calculated demonstrating a growth in the size of government alone. We here at the Lumaj Group accept the 2% GDP growth, however the media errand class fails to tailor factors that curtail this 2% growth rate: inflation and currency depreciation come to mind. Inflation is now raging around 6%, the Fed along with a complicit Congress had weakened our currency about 6% yearly. Do the math. We’re in negative territory.
You don’t have to take our word for it, just read the latest research out from the nonpartisan economic consulting firm Sentier Research. These former Census income specialists note that after nearly four years of an Obama Presidency net household income is down nearly $5,000. Let’s explain.
In January of 2009 median household income was barely $55,000. Adjust that for inflation and you can see how median household income is down nearly $5,000. That’s a net loss in real income of about one month’s income per year.
According to the Obama Presidency, the Great Recession ended in June of 2009. But wait it gets worse. According to Sentier Research, median household income is down nearly 10% since the dot com bust. This number still takes into account dismal fertility rates, smaller families, and more Americans living alone. This is terrible news for the American Imperium.
During Reagan’s term in office, all US families had a 30% rise in median household income, this is according to the Congressional Budget Office. We must note that this 30% increase in median household income occurred when non-government unionization fell dramatically.
So what’s sucking the purchasing power of the dollar? Its not just higher inflation, its much higher college tuition costs, medical procedures and energy. We didn’t even mention food!
The surge in US workforce productivity that occurred as the Reagan Revolution was the result of massive surge in capital investment in companies throughout the region. When Americans are able to be more productive, they destroy all other competitors (read nation states.) Keep this is mind when Obama says he wants to raise taxes on investment income, capital gains, dividends and small businesses. This makes US companies and by extension US citizens less competitive.
It certainly makes it far more expensive for business to stay open, raising the costs of products/services that would nominally go down. This plays out over time as shrinking wage growth. Remember, the United States has the highest corporate tax rate on the planet.
Whom else has been hurt from this Presidency? Our friends at Sentier reveal that the group of Americans that got hit the hardest were urbanites, mostly African Americans and single mothers.
We should note that the last time Americans saw their incomes fall this fast was during the Carter Administration.
Obama is a lot of things, but he’s no tribune to the working or middle class!