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Surprise: Obama “practicing trickle-down economics”

Surprise: Obama “practicing trickle-down economics”

George Will Explains How Obamanomics Really Works

At Obama’s recent speech in Illinois, he spent part of his time talking about improvements he has made to the economy and suggested other things that could be done. Naturally, he railed against trickle down economics.

On Special Report with Bret Baier, George Will provided some facts for the low information crowd.

Transcript via Tom Blumer of News Busters (emphasis is his):

GEORGE WILL: The president went to the state of Illinois to brag about the economy. Illinois has 300,000 fewer jobs than it had in 2008. For the last four years in the state of Illinois, the number of new food stamp recipients has increased twice as fast as the number of new job recipients. He was speaking in Illinois on a college campus. He did not mention that 40 percent of recent college graduates are either unemployed or underemployed — that is, in jobs that don’t require college degrees — and one in three recent college graduates is living at home with their parents.

Now, the president, we just heard, disparage trickle-down economics while bragging about doubling the stock market value. He is practicing trickle-down economics by doubling the stock market. He, and, for six years now, and most recently under his choice to be head of the Fed, Janet Yellen, have had zero interest rates, the intended effect of which is to drive people out of bonds and into assets like farm land, but particularly into stocks. That is why this has been a boon to the 10 percent of Americans who own 80 percent of all the directly owned stocks. And this is why 95 percent of the wealth created in the last six years have gone to the dreaded top one percent.

Here’s the video:

So in a nutshell, Obama is causing the very things he claims to be against and for which he claims to have the solutions.

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Comments

I can almost feel Obama’s economics trickling down my leg.

Touting stock market gains as U.S. economic growth, as something Obama built is a perverse joke, to be sure. And, the FED deserves no credit (literally) whatsoever. Both parties ARE the problem.

Now, income inequality, that IS something Obama built along with shrunken head economists like Paul Krugman and Creating-Capital-thru-extensive-book-sales non-savant Thomas Piketty.

Labor market participation rates are at all time lows. Food stamp lottery odds-of-winning have decreased exponentially. These two indicators alone BTW are not considered to be signs of economic growth (for you NYT economists).

The assumption Will makes is that the Fed could have made a significant change in interest rates if it decided to do this. There are too few attractive investment opportunities and as a result the price of existing assets gets bid up by people who desperately want to save money. Savers are unhappy because they can’t earn a real return on their savings. Workers are unhappy because they can’t find work. The fundamental question is what prevents the two groups from cooperating to grow the economy and make profits. The answer is the effect of Obama Administration policies on investment risks. We are becoming a crony-capitalist banana republic.

4 word summary:

He has no clue.

nordic_prince | October 5, 2014 at 7:00 pm

Zero’s economic policies rely primarily on trickle-up poverty. As long as he and his fat cat cronies have it cushy at the top 1%, he doesn’t give a flying fig ~

Henry Hawkins | October 5, 2014 at 7:39 pm

Well, let it keep trickling ‘cuz we’re dry as a bone down here in the basement.

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