From Investors Business Daily.
According to an IBD review of various economic data, while corporations and Wall Street investors have made significant gains under Obama’s economic leadership, average Americans have seen their fortunes steadily decline.
Since the start of the Obama administration, corporate profits have climbed 68% (about 59% after inflation), and are now 19% above their pre-recession peak, according to the latest Commerce Department data out Tuesday morning.
Meanwhile, companies are sitting on a pile of cash that’s grown 38% from Q1 2009 to Q2 2011, according to the Federal Reserve’s quarterly “Flow of Funds” report.
And since Obama’s inauguration, the Dow Jones Industrial Average has climbed 45%.
However, these solid gains haven’t translated into prosperity down the economic ladder.
Since Obama took office, median weekly earnings have dropped almost 5% after inflation, according to the Bureau of Labor Statistics. Home prices are below their January 2009 levels; unemployment is higher, as is the inflation rate. Gas prices alone have more than doubled since January 2009.
[…]Household income: Since the recovery started, household income has fallen 6.7%, according to a study by former Census Bureau officials. That’s a bigger decline than during the 18-month recession, when income fell 3.2%.
Jobs: Despite job growth since the recession ended, there are still 1.4 million fewer private sector jobs today than when Obama was sworn in, according to the Bureau of Labor Statistics. And the pace of growth — 1.6 million new jobs over the past two years — is far below what’s needed just to keep up with growth in the labor force.
Income inequality: After remaining essentially flat under President Bush, the gap between rich and poor has climbed in each of Obama’s first two years, according to the Census Bureau.
Consumer confidence: The Consumer Confidence Index dropped to 39.8 in October, down almost 10 points from when the recession ended, and almost right where it stood when Obama took office.
Misery Index: This index, which combines the unemployment rate with the inflation rate and is meant as a proxy of middle class pain, is 60% higher than when Obama took office, and it’s at a level not seen since mid-1983.
Home prices: The median price for existing home sales has dropped 4.6% since January 2009, according to monthly National Association of Realtors data. And the number of underwater mortgages is up, according to Core Logic.
Union membership: The share of private sector workers who belong to a union fell to 6.9% in 2010, compared with 7.6% the year before Obama took office, according to the Bureau of Labor Statistics.
The article explains why Obama’s rhetoric differs from reality – it turns out that the very policies he enacted created the poverty he claims he was going to reduce. Because he’s not an economist. He’s trying to do things that sound good so that people will like him. But those things don’t work.