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Posts Tagged ‘The Obama Boom’

The Obama Boom: Food Stamp increase despite “improved” economy

by Rodan ( 154 Comments › )
Filed under Economy, unemployment at March 28th, 2013 - 3:41 pm

The media has proclaimed America is in  anew golden age of economic growth. Obama is celebrated as a hero who has rescued America from the abyss. Article after article tells of a great economic growth, a booming stock market and an awesome job market. The 0.4% increase in GDP is overlooked and not mentioned. One would think this was the 80’s or 90’s again. But reality is different.

In a sign of the true state of the economy, food stamp usage is increasing.

The biggest factor behind the upward march of food stamps is a sluggish job market and a rising poverty rate. At the same time, many states have pushed to get more people to apply for SNAP, a program where the federal government picks up the tab.

But there is another driver, which has its origins in President Bill Clinton’s 1996 welfare overhaul. In recent years, the law has enabled states to ease asset and income tests for would-be participants, with the encouragement of the Obama administration, allowing into the program people with relatively higher incomes as well as savings.

The new rules were designed to encourage people to take advantage of the program before they became destitute. By expanding the pool of potential applicants, they are redrawing the landscape of government assistance. It is one reason why SNAP appears to have evolved from a program that rose and fell with the unemployment rate to a more permanent feature of the landscape.

Those of us in the real world know that the economy is stagnant. But reality trumps propaganda in the Obama Boom.

In another sign of bad economic times, the amount of workers going on disability has also increased.

The federal government spends more money each year on cash payments for disabled former workers than it spends on food stamps and welfare combined. Yet people relying on disability payments are often overlooked in discussions of the social safety net. People on federal disability do not work. Yet because they are not technically part of the labor force, they are not counted among the unemployed.

In other words, people on disability don’t show up in any of the places we usually look to see how the economy is doing. But the story of these programs — who goes on them, and why, and what happens after that — is, to a large extent, the story of the U.S. economy. It’s the story not only of an aging workforce, but also of a hidden, increasingly expensive safety net.

This is how they have managed to lower the unemployment rate. This is where people leaving the workforce are going.  None of this matters, the American people love Obama and his failures have done him no damage.

The Obama Boom: The low wage recovery

by Rodan ( 4 Comments › )
Filed under Economy, Headlines, unemployment at March 22nd, 2013 - 11:59 am

Going by the media, you would think America is an a economic golden age. A Federal Reserve Governor throws cold water on this alleged economic golden age. She points out most of the job growth has been in low wage or temp jobs.

Too much of the recent growth in employment has been concentrated in low-wage and temporary jobs, leaving the recovery on shaky ground, a top Federal Reserve official said Friday.

Sarah Raskin, a member of the Fed’s board of governors, said monetary policymakers are doing all they can to promote stronger economic growth and beef up hiring, and cited improving labor market conditions. But she added interest rates are a blunt tool that cannot help direct the types of jobs that are created, noting one-quarter of U.S. workers are now considered low-wage.

Pointing to a sharp post-recession rise in poverty, a subject not often the focus of speeches by Fed officials, Raskin also argued the rise of temporary employment, which she said is approaching a record, was further widening an already large gap between rich and poor Americans.

“Our country cannot achieve prosperity without addressing the powerful undertow created by flat wages and tenuous financial security for so many millions of Americans,” Raskin said in prepared remarks to the National Community Reinvestment Coalition’s annual conference.

Raskins’ commenst will not get much attention. The media narrative is that Obama is leading America to unprecednted propserity. Can’t let the truth get in the way of a good lie!

The Obama Boom: Industrial Production falls .01%

by Rodan ( 2 Comments › )
Filed under Economy, Headlines, unemployment at February 15th, 2013 - 12:09 pm

Despite the happy talk from the media, which is causing consumer optimism to increase, nothing much has really changed. The economy is still limping along sluggishly and American living standards are in decline. Food and energy costs continue to increase, while incomes remain stagnant. Industrial production dropped 0.1% for the month in January.

U.S. industrial production unexpectedly fell in January, weighed down by weak manufacturing and mining, according to a report on Friday that was another sign of slow economic activity at the start of the year.

Industrial production dipped 0.1 percent last month after a revised 0.4 percent gain in December, the Federal Reserve said.

This news does not matter to most Americans. they are being told the economy is booming, despite the fact most are struggling. Perception is now reality in Obama’s America. facts no longer matter.

CNBC brags about the decrease of long term unemployment

by Rodan ( 49 Comments › )
Filed under Economy, Media, unemployment at February 6th, 2013 - 11:00 am

Anyone reading CNBC would believe that we are in roaring economic times. Any slight improvement in economic data leads to wild cheers and claims we are having unprecedented prosperity. Since Obama has been in office, 8 million people have dropped out of the labor force. This has kept the unemployment rate artificially lower than what it really should be. But, this fact is rarely mentioned or its buried under triumphant headlines.

In the latest propaganda piece, CNBC’s Marc Koba is bragging that now the long term unemployed are decreasing. The article claims this is proof that our economy is booming and a strong job market. In the article itself, the truth is revealed why this is occurring. You guess it, the improvement in long term unemployment is due to people dropping out of the labor market.

The long term unemployed in the U.S are having an easier time finding jobs, while the chronic problem of long-term joblessness may disappear in the months ahead, according to a study released Monday from the Federal Reserve Bank of San Francisco.

The jobless rate in the U.S. is currently at 7.9 percent, with some 12.3 million people out of work, according to the Bureau of Labor Statistics. Of that, some 4.7 million are considered long term unemployed — meaning they have been jobless for 27 weeks or more.

Using BLS numbers, the report stated that in December 2012, the share of workers who were jobless six months or longer dipped below 40 percent for the first time since late 2009. The portion of unemployed Americans out of work for 99 weeks or longer fell to 11.2 percent in January — the lowest level in two years

[….]

Other reasons for the decline in the long-term unemployed aren’t so positive, however. It’s estimated that some 7 million people have dropped out of the labor force because they’ve just given up looking for work and are no longer part of the official statistics.

“It’s true that a lot of people have just given up, so that’s part of the reason the long-term unemployed numbers have gone down,” Valetta admitted.

This is typical of economic news reported by the media. They jump on any positive aspect to prove the economy is strong. The real reason for any decline is hidden. The 7 Million who dropped out of the labor force is the 800 lb Gorilla the Obama Boom propagandists do not mention. CNBC like most news outlets are dishonest propagandists.

The Obama Boom: 157,000 Jobs created in January and Rate Up to 7.9%

by Rodan ( 179 Comments › )
Filed under Economy, unemployment at February 1st, 2013 - 11:00 am

The incredible Obama Boom continues to spread prosperity! 157,000 jobs were created in January. The Unemployment rate went up and to 7.9%. The labor force participation is still 63.6%, which is near historic lows.

The new year started off with an old story: Employment grew again in January but not at a pace able to lower the jobless rate.

Nonfarm payrolls rose 157,000 for the first month of 2013 while the unemployment rate edged higher to 7.9 percent, news unlikely to alter the Federal Reserve’s monetary policy or instill confidence that the recovery is gaining steam.

Economists were looking for 160,000 net new jobs created with the unemployment rate holding steady at 7.8 percent.

The ho-hum jobs numbers for January were accompanied by substantial revisions higher for previous months, according to the report from the Bureau of Labor Statistics.

Traders reacted positively to the report, providing a healthy gain at the market open.

If a Republican was President, the media would be destroying these numbers. But since it their believe god-king, well stagnant growth is great!  8 million Americans have left the workforce since Obama has been President and no mention of this by the media. Wall Street loves the report because it means that the Federal reserve will keep the money spigot open to prop up the market. Meanwhile American’s purchasing power and standard of living continues to decline. Low expectations is now the norm in American. This is unacceptable, but with the Media-Industrial Complex controlling the narrative, Americans are happy at stagnant growth.

 

The Obama Boom!

by Flyovercountry ( 233 Comments › )
Filed under Economy, unemployment at January 30th, 2013 - 6:00 pm

The old saying goes something like this, “fool me once, shame on you, fool me twice, shame on me.” Well America, take a wild guess which part of that statement pertains to us. There were a bevy of faked news reports out from June of 2012 all the way through November 6, of the same year telling us all how rosy the economy truly looked. Those of us who bothered to look a little deeper into the numbers being fed to us by the usual culprits told you it was a sham. Yes the U-3 number dipped below 8%. However, we pointed out that the labor force participation rate needed to drop below a level not experienced since before the market crash of 1929 in order to achieve that number. Yes the GDP number started to show some semblance of what can only be termed as sluggish growth. However, those figures were due entirely to increases in government hiring and spending as well as hugely incentivized increases in manufacturing inventories. Undaunted by mere facts, America returned the man child President to the Oval Office on the premise that our economy was just starting to recover, and a change at this point would be foolish.

A funny thing happened on the way to economic recovery today. As it turns out, illusions can not be maintained forever. So, the gag is this, once the election is over, we get a glimpse of the harsh realities yet to come. Since manufacturers who produced those inventories didn’t actually have orders for their wares, and were not capable of selling their product after the fact, those massive inventories will sit, the workers will be let go, and now as an added bonus, we elected a man to our top office who will do what ever he can to regulate any actual recovery out of existence. Yay! The stark reality is that our economy has slipped back into recession, and it did this before the economic damage done by the Obama Presidency reached its full potential. That thought should scare the pants off of anyone still awake, and if that does not do it, then the upcoming national hunger will. One of the major problems with relying on a recovery based entirely on growing the public sector is that governments don’t actually produce anything, they merely confiscate from those who do produce. The results of following this path all the way to the inevitable conclusion are truly something to fear.

The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.

The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That’s a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.

The surprise contraction could raise fears about the economy’s ability to handle tax increases that took effect in January and looming spending cuts.

Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.

And those volatile categories offset faster growth in consumer spending, business investment and housing — the economy’s core drivers of growth.

Another positive aspect of the report: For all of 2012, the economy expanded 2.2 percent, better than 2011’s growth of 1.8 percent.

The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay.

Subpar growth has held back hiring. The economy has created about 150,000 jobs a month, on average, for the past two years. That’s barely enough to reduce the unemployment rate, which has been 7.8 percent for the past two months.

I read a post at the Blogmocracy today that should be required reading for every high school and collegiate economics class taught in America. Hat tip to Coldwarrior. Take a good look at the picture at the top of the link. That man is holding a Ten Million Dollar Bill, made payable by the central bank of Zimbabwe. What makes it pertinent to today’s essay is that Barack Obama’s rhetoric is exactly the same as Robert Mugabe’s. You would be able to take a stump speech from either man, and substitute it for the other, and no one would be able to tell the difference, save one. You will find it necessary to substitute the word rich for white in the Mugabe speech, and vice versa for the Obama speech in order to pull off the ruse.

The only result possible from continued government largess of this scale is wild inflationary pressure. The only possible result from demonizing the successful people who create wealth and following through on the promises made to punish those who do succeed is the complete loss of wealth for the entire society. Zimbabwe stands as that perfect laboratory as to what our future looks like should we continue along this path for a sufficient amount of time.

The reason it will take longer for us to reach these depths than it took Zimbabwe is because preceding generations had built sufficient wealth for us to cannibalize without noticing immediately the destructive nature of our ways. Capitalism, while it is not perfect, is the best system of economics in existence. Our first 212 years have allowed us to act foolishly for the next 24, without burning completely through daddy’s money. But, just like Barbara Hutton, who’s two grandfathers were Franklyn Hutton and F.W. Woolworth, it is possible to blow it all. She died penniless you see, after spending her entire adult life not working, not creating, and spending both fortunes as if consequences were petty little concerns for other people to worry about. She didn’t notice either that she was going broke, and left no children behind. We, as Americans are not so lucky. We are leaving a generation or two, or possibly a dozen or more, who will have to pay for the mess that we are leaving them.

I guess the good news is that we have a tool to prevent Barack from accomplishing his ultimate goal, which is to see America turned into Zimbabwe. That tool is our Constitution, and last week Barack got slapped down by the Judicial Branch in a major league way. It seems as though a President can not just make up his own rules and then declare himself supreme after all. In this case, the Bamster had declared the Senate to be in recess, even though they weren’t, and then made recess appointments to the NLRB, three of them. He got sued, and lost at the appellate level, and the result of the suit is that not one single ruling from the board made during the last year is binding in any way. We are more than half way through this thing now, and the damage that has been done can still be undone. It’s just going to take a hell of a lot of work to get there.

Special note here: For those of you reading this who are not yet members of the Blogmocracy, please consider joining in the conversation. The comments and discussions on the posts that run there are what makes the site worth the read, and the posts ain’t bad either. What’s more, differing points of view are welcome.

Cross Posted from Musings of a Mad Conservative.

The Obama Boom: 146,000 job created in November, Unemployment drops to 7.7%

by Rodan ( 6 Comments › )
Filed under Economy, Headlines, unemployment at December 7th, 2012 - 10:04 am

The Obama Boom continues to defy all Economic rules. Before the much heralded Obama economy, it was thought that you needed 150,000 jobs created per month just to keep up with population growth. 225-250,000 was the number once thought needed to drop the unemployment numbers. The rules no longer apply to the Obama Boom. For the past 2 1/2 years, the economy has been adding jobs at a pace of 130-150,000 per month. Yet the unemployment rate has dropped from 10% to 7.7%!  There is a reason for this, as you read the report!

The U.S. economy created 146,000 new jobs and the unemployment rate slid to 7.7 percent, in a report much better than economists had expected.

Though most on Wall Street figured Superstorm Sandy to tamp down job growth, the Labor Department said the late-October storm that decimated the East Coast actually had little effect.

[….]

Also, the drop in the unemployment rate appeared to reflect little more than a continued exodus of workers from the labor force.

The labor force participation rate, already around 30-year lows, fell further in the month to 63.6 percent. That represented 350,000 fewer workers.

In all, there were a net 122,000 fewer people with jobs.

[….]

“Same old, same old. The government managed to get the unemployment rate down by shrinking the labor force and convincing a lot of people they’re better off collecting unemployment benefits or living off welfare than working,” said Peter Schiff, CEO and chief global strategist at Euro Pacific Capital. “It’s more bogus government numbers.”

That is why the unemployment rate keeps dropping. People are leaving the work force due to lack of jobs. The 5 million jobs Obama brags about are junk jobs that pay close to the minimum wage. But after a decade of anemic growth, Americans have lowered their expectations and that is why most think the economy is good.

The Obama Boom: 171,000 jobs added in October and Unemployment rises to 7.9%

by Rodan ( 143 Comments › )
Filed under Business, Economy, unemployment at November 2nd, 2012 - 11:09 am

The US economy added 171,000 for the month of October. This number is just above the rate needed to keep up with population. It’s not bad, but it’s not awesome either. But reality will not matter. The media will crow the economy is booming and all is well in the world.

American job creation improved in October with 171,000 new jobs but the unemployment rate moved higher to 7.9 percent, setting the stage for a final push to the finish line in the heated presidential campaign.

Economists had been expecting the report to show a net of 125,000 new jobs and a steadying of the unemployment rate at 7.8 percent. Nomura Securities predicted the rate would fall to 7.7 percent, but most expected no change.

Most of the job creation came in the services sector, with a gain of 150,000, while government employment rolls saw a collective decrease of 13,000, according to the report from the Bureau of Labor Statistics.

[….]

aken comprehensively, the report was better than expected but still representative of tepid growth that is doing little to generate escape velocity for the slow-moving economy.

“You’re still seeing that gap of a relay race in the economy where the consumer’s feeling a little bit better…but the corporate sector is not as strong,” Diane Swonk, economist at Mesirow Financial in Chicago, told CNBC. “They’re not hiring out like crazy, but certainly you’ve got to welcome these kinds of numbers.

There is another factor about this report, hourly wages

One of the negative features of the current economic recovery has been declining incomes of average Americans.

This trend continued in October.

The Labor Department reported Friday that despite 171,000 jobs being added to nonfarm payrolls in October, average hourly earnings for such employees edged down by 1 cent to $23.58. 

Average hourly earnings of private-sector production and nonsupervisory employees also dropped by 1 cent to $19.79.

This continues a trend reported by the Census Bureau in August finding that since the recovery began in June 2009, median household incomes have fallen 4.8 percent adjusted for inflation.

When Bush was President the media called numbers like this anemic. Now that Obama is President, these are considered great numbers.

The Obama Boom: 3rd quarter GDP grows at an anemic 2% due to government spending

by Rodan ( 165 Comments › )
Filed under Business, Economy, unemployment at October 26th, 2012 - 10:30 am

The Obama lapdog media is already crowing about the latest GDP numbers and they are proclaiming that the economy is strong and we are living through an unprecedented boom.  The economy grew at a 2% for the 3rd quarter of 2012 which is a slight improvement from the 1.3% growth of the 2nd quarter. 2% no matter how you slice it is still an anemic figure and it is nothing to brag about and in this case its totally artificial since most of the growth came from a 9.6 % increase in government spending!

The U.S. economy expanded at a slightly faster 2 percent annual rate from July through September, buoyed by an uptick in consumer spending and a burst of government spending.

The Commerce Department said growth improved from the 1.3 percent rate in the April-June quarter.

The pickup in gross domestic product may help President Barack Obama’s message that the economy is improving.

Still, growth remains too weak to rapidly boost hiring. And the 1.74 percent rate for 2012 trails last year’s 1.8 percent growth, a point GOP nominee Mitt Romney will emphasize.

[….]

Government consumption and expenditures soared 9.6 percent after decreasing 0.2 percent in the second quarter.

Defense spending surged 13 percent after also decreasing 0.2 percent during the previous period.

This is a terrible number for the economy.  Two percent represents stagnation and is not enough to keep up with new workers trying to enter the workforce.  When George W. Bush was president, a growth of 2.5% to 3% was called anemic (or a jobless growth), but now that Obama is president, 1.5% to 2% is considered good economic news – that’s how much we have lowered our expectations for “the greatest economics president we ever had” (as Bob Beckel once pronounced him to be).  Keep in mind that when Poppy Bush lost in 1992, 3rd quarter GDP was 4%, therefore  Obama’s economy is worse than Bush’s 20 years ago.  Still the media in its quest to reelect the fraud, will push the 2% as “happy days are here again”.

There is no Obama Boom and hopefully on November 6th, Americans will reject this propaganda.

The Obama Boom: 114,000 jobs created in September; Unemployment falls to 7.8%

by Rodan ( 73 Comments › )
Filed under Business, Economy, Misery Index, unemployment at October 5th, 2012 - 12:00 pm

The old rule that you need job growth of 150,000 to keep up with population growth and 250,000 jobs per month to lower the unemployment rate has been thrown out the window. The miraculous Obama Boom is rewriting the old rules applying to job growth. Only 114,000 jobs were created in the month of September, yet the unemployment rate fell to 7.8%. The drop in unemployment is due to the Household survey, which claims that there were 873,000 more Americans working in September.

Job growth remained tame in September, with the economy creating just 114,000 net new positions though the unemployment rate fell to 7.8 percent, the first time it has been below 8 percent in 43 months.

The report presented a slew of contradictory data points, with the total employment level soaring despite the low net number.

The falling jobless rate had been a function as much of the continued shrinking in the labor force as it was an increase in new positions.

But the government said the total number of jobs employed surged by 873,000, the highest one-month jump in 29 years. The total of unemployed people tumbled by 456,000.

The labor force participation rate, which reflects those working as well as looking for work, edged higher to 63.6 percent but remained around 30-year lows. The total labor force grew by 418,000, possibly accounting for the relatively modest net level of job growth.

[….]

The level of part-time workers reported the largest jump for the month, gaining 582,000.

The U-6 unemployment number, which accounts for the underemployed and those who have given up looking for jobs, held steady at 14.7 percent.

The U6 number which shows the real unemployment rate at 14.7% is unchanged. The truth of these facts will not matter. All the Obama Regime will crow is the phony 7.8% number. After getting his clock cleaned Wednesday night, Obama needs help to imp[rove his image. Well the BLS and their fudged numbers have come to the god-king’s rescue. I hope Americans don’t fall for this crap.