Obama’s fear mongering is well documented. Crisis, catastrophe, “since the Great Depression” and similar terminology are part of the plan to push through Obama’s agenda. But do the words cause economic harm, or are the words merely a reflection of a declining economy? In other words, which came first, the economic chicken or Obama’s policy egg?
The evidence is in. Obama’s fear mongering is part of the problem, not part of the solution. There is no lack of money in people’s pockets, but people are saving the money not spending it.
U.S. households socked away most of the extra income they got in January from annual cost-of-living raises, boosting the personal savings rate to a 14-year high, the Commerce Department said Monday.
Disposable real incomes rose in January at the fastest pace since May as annual pay raises and cost-of-living increases took effect, the Commerce Department said. Real disposable incomes (adjusted for inflation and after taxes) increased 1.5%, despite the third straight decline in income from wages and salaries….
With disposable incomes rising faster than spending, the personal savings rate rose to 5%, the highest since March 1995. At an annual rate, personal savings rose to a record $545.5 billion….
In the past year, real disposable incomes have risen 3.3%, while real spending is down 1.6%.
In other words, people are saving more and spending less. Why would this be? Fear stoked by this administration.
We don’t need massive government spending to get this economy moving. What we need is to invigorate confidence in the economy through rhetoric and policies which free up the private sector, and give people the confidence to resume normal economic life.